market report
Status: 10.11.2022 7:38 a.m
The DAX bulls are reluctant to make any further purchases ahead of the upcoming US inflation data. An important stage win they achieved this week is up for grabs again.
Investors in the German stock market are taking cover before this afternoon’s upcoming US inflation data and in view of negative indications from Wall Street and the Asian stock exchanges. The DAX is likely to start with losses in XETRA trading. The broker IG assesses the 40 German standard values 0.5 percent lower at 13,604 points.
200-day line in the DAX is shaking
The DAX threatens to fall back below its 200-day line. The DAX bulls were only able to drive the leading German index above its moving average of the past 200 trading days (currently at around 13,610 points) this week. A fall below the 200-day line would cloud the technical prospects in the DAX again.
Uncertain election outcome weighs on Wall Street
Negative guidelines for DAX trading come from Wall Street. Investors on Wall Street retreated midweek as the race between Democrats and Republicans close in the US midterm elections. The Dow Jones index of standard values closed two percent lower at 32,513 points. The tech-heavy Nasdaq fell 2.5 percent to 10,353 points. The broad S&P 500 lost 2.1 percent to 3748 points.
“It’s just uncertainty that Wall Street doesn’t like because a lot of the races aren’t fully over yet (…) you don’t get a clear idea of who has the majority in the Senate,” said Sam Stovall, investment strategist at CFRA Research in New York. Control of the US Senate may not be decided until December 6 as a runoff election looms in the state of Georgia.
Fear of US inflation data weighs on Asian stock markets
The negative forecasts from Wall Street and the fear of the forthcoming US inflation data, which will have a significant impact on the monetary policy course of the US Federal Reserve, are depressing the buying mood on the Asian stock exchanges. The Nikkei index, which comprises 225 stocks, just ended trading on the Tokyo stock exchange down 1.0 percent at 27,446 points. The Shanghai stock exchange is currently down 0.3 percent.
Euro continues above dollar parity
In Asian forex trading, the dollar is showing some weakness. At the same time, the euro rose by 0.2 percent to $1.0034. The European common currency can thus continue to stay above par with the dollar. For a troy ounce of gold 1712 dollars are paid in the morning.
Numbers in the DAX
In the DAX, four corporations are now looking at their books. Merck, RWE and Deutsche Telekom made the start. Continental follows at 8 a.m. Yesterday evening after the US stock market closed, Allianz had already pushed ahead with numbers.
Allianz earns a surprising amount
The insurance group Allianz earned more in the past quarter, but turned over less than analysts had expected. For 2022, the group expects an operating result in the upper half of the target range of 12.4 to 14.4 billion euros. Thanks to the good development in the property and casualty area, 3.5 billion euros were achieved in the third quarter, 7.4 percent more than in the same period of the previous year.
Telekom raises profit forecast again
Continued strong business from the US subsidiary T-Mobile and positive exchange rate effects bring Deutsche Telekom a jump in profits. Adjusted net income increased 80 percent to $2.4 billion in the third quarter. Company boss Tim Höttges then raised the forecast for the year again and also announced a higher dividend of EUR 0.70 per share.
RWE can almost double profit
The energy group RWE increased its profit significantly in the first nine months and confirmed its forecast. RWE was able to almost double the adjusted surplus to 2.1 billion euros. Among other things, the DAX group benefited from good business in gas, water and biomass as well as in energy trading. RWE also confirmed its forecast for the year.
Merck braces itself against economic dip
The pharmaceutical and specialty chemicals group Merck KGaA increased sales and earnings in the past quarter despite rising costs – mainly thanks to good business in the laboratory area and in the pharmaceuticals division. After taxes, Merck earned 926 million euros, after 764 million a year earlier. The management around company boss Belen Garijo specified the goals for the current year.
Porsche: million comparison in the USA
The sports car maker Porsche is able to settle an unpleasant US lawsuit over allegedly misleading fuel consumption figures for hundreds of thousands of cars. The responsible judge Charles Breyer agreed to a comparison with US plaintiffs on Wednesday (local time). The company is paying at least $80 million to car owners to settle the civil lawsuit.
Real estate group LEG lowers forecast slightly
The housing group LEG Immobilien has slightly lowered its profit forecast for 2022. Yesterday evening, the Düsseldorf-based company specified the expectation for the operating result (FFO I) to a range of 475 to 485 million euros. So far, 475 to 490 million euros were targeted. Meanwhile, investments in the housing stock are lower than planned.
Musk “kills” new tick after a few hours
New Twitter owner Elon Musk has halted the launch of a new icon for verified accounts of celebrity users after just a few hours. Some users would have the gray tick with the word “Official” appear and then disappear on their profiles. He “killed it,” Musk then replied to well-known tech blogger Marques Brownlee on Twitter.