Concerns about the economic impact of the Omikron variant have noticeably eased. On the other hand, the fear of interest rate hikes is now coming to the fore again on the stock exchanges.
The DAX is likely to start XETRA trading with a small premium. Banks and brokers are currently appraising the leading German index 0.1 percent higher at 15,704 points. This is likely to be primarily a technical backlash to yesterday’s losses.
DAX recovery stalled
Since the beginning of the week, the 40 German standard values have clearly moved up from their lows of 15,100 points. However, yesterday the recovery rally stalled after rising early to 15,834. The DAX closed 0.8 percent in the red at 15,687 points.
Investors’ eyes are now already on Friday: US inflation data for November will be released tomorrow. A high consumer price index could fuel speculation about a rate hike in the second quarter.
Three rate hikes in the US in 2022?
Investors are now speculating that the US Federal Reserve could reduce its bond purchases from January by 30 billion dollars a month. The pace of the reduction would thus double, and tapering could be over as early as March. Then the way would be free for interest rate hikes.
“The US futures are pricing in three Fed rate hikes by the end of 2022,” emphasizes market expert Robert Rethfeld from Wellenreiter-Invest. The first rate cut could come in June, maybe even as early as May. Rising interest rates make stocks less attractive compared to bonds.
Volatility is likely to remain high
The fact remains: Investors will have to expect high volatility, i.e. high price fluctuations, on the stock exchanges in the further course of December. The next recovery rally, but also the next price slump, is only a headline away.
Headline news that investors first have to digest are now in short supply for the time being. The last Omikron news of relevance to the market dates from yesterday, but it should continue to have an impact today.
Good news from BioNTech and Pfizer is having an impact
BioNTech and Pfizer had announced that preliminary results from laboratory studies had shown that three doses of their vaccine would provide effective protection against the newly discovered Omicron variant of the coronavirus.
That is good news, said analyst Fiona Cincotta of the broker City Index. Now it is important to distribute the booster vaccinations as quickly as possible and to prevent new lockdowns.
Dow Jones only with slight gains
After the latest price rally, investors on the US stock exchanges shifted down a gear in the middle of the week. The US standard value index Dow Jones closed yesterday 0.1 percent higher to 35,754 points. The technology-heavy Nasdaq advanced 0.6 percent to 15,786 points. The broad S&P 500 gained 0.3 percent to 4701 points.
Apple worth nearly three trillion dollars
The Apple share caused a sensation yesterday. It gained 2.3 percent and was more expensive than ever at $ 175.08. The iPhone vendor’s paper now only needs another five percent increase to break the $ 3 trillion mark in market capitalization.
“Apple seems to be immune to the ups and downs of economic development,” said analyst Susannah Streeter of the brokerage house Hargreaves Landsdown. The company owes this to its strong brand name. Investors reacted yesterday to the fact that the iPhone manufacturer managed at the last minute to postpone a relaxation of the App Store rules ordered by a court ruling.
Nikkei closes in the red
The Asian stock exchanges cannot agree on a common direction today. The Japanese Nikkei index, which comprises 225 values, has left trading with a minus of 0.5 percent to 28,725 points. In contrast, the Shanghai stock exchange is currently 1.2 percent up.
Oil prices on the rise
Oil prices pick up in the morning. A barrel (159 liters) of North Sea Brent costs $ 76.32. In Asian foreign exchange trading, the euro fell slightly to $ 1.1331. The troy ounce of gold costs $ 1,786. That is 0.2 percent more than the day before.
Deutsche Börse extends CFO’s contract
The Supervisory Board of Deutsche Börse has extended the contract of CFO Gregor Pottmeyer by three years. The new contract will run until the end of September 2025, the company announced. Pottmeyer (59) has been a member of the Management Board since October 2009. His current contract is said to run until the end of September 2022.