Fed decision in the evening: DAX feels nervous

DAX investors are watching the Fed with excitement

At noon, the DAX lost 0.2 percent to 13,307 points. Most recently, the stock market barometer ended seven trading days in a row with a positive sign and, according to experts, broke the downward trend that applied this year for the time being. Only yesterday did the DAX reach a new high since mid-September, at times reaching 13,444 points.

Today, however, investors’ courage is fading in view of the Fed’s interest rate decision, which is due in Germany after the market close. A fourth hike in US interest rates by 0.75 percentage points is seen by the markets as a foregone conclusion. The central bank’s outlook and the statements by Fed Chairman Powell are therefore likely to be decisive. Investors want signals as to the speed at which interest rate hikes will continue.

“Many on the market hope and expect that the Fed will slow down from the next interest rate meeting in December. If these hopes are disappointed, there could be new turbulence on the stock exchanges,” says expert Thomas Altmann from asset manager QC Partners. Like the last interest rate meetings, today’s has the potential to move the markets properly.

Teamviewer stocks in focus – defensive stocks in demand

In terms of individual values, the titles from Teamviewer took the spotlight. With a price increase of almost 20 percent at the top, they are heading for record growth. Thanks to above-average growth in profitable business areas, the software house sees itself on the right track for the rest of the year. The papers of the Norma Group, which rose by 3.8 percent at the top of the SDAX, were also in demand for figures.

Meanwhile, Internet stocks generally retreated after a strong previous day, and despite good quarterly figures, the titles of Auto1 followed with a discount of 3.1 percent. The Varta shares were a bigger loser in the MDAX with a minus of 3.6 percent after the analysis company Warburg turned its previous buy recommendation into the opposite.

Real estate stocks, such as DAX member Vonovia with a setback of 5.5 percent, also showed general weakness due to the prospect of long rising interest rates. On the other hand, more defensive stocks from the healthcare sector were favored in the DAX, above all the pharmaceutical company Merck with a two percent plus.

Dow Jones expected slightly weaker

The mood on Wall Street is also tense. The Dow Jones future is currently trading minimally in the red. Yesterday, surprisingly strong US jobs data pushed prices into the red after a solid start. The leading US index closed 0.2 percent lower at 32,653 points. The broader S&P 500 fell 0.4 percent to 3856 points, the Nasdaq 100 was one percent lighter at 11,289 points.

In its monetary policy, the Fed also keeps an eye on the situation on the labor market. Robust data gives the monetary authorities more leeway to fight high inflation with strong interest rate hikes. Job vacancies climbed to 10.7 million in September, boosting wages in an already hot job market and increasing pressure on the central bank.

Asian investors are banking on the easing of corona rules in China

Speculations about a possible departure from the strict zero-Covid policy in China continue to provide tailwind on the Asian stock exchanges. After the heavy sales of shares in the past month, a message circulating on social media the day before made investors largely optimistic today. According to the unconfirmed news, China is planning one in March Lifting the strict Covid restrictions.

The Shanghai stock exchange and the index of the most important companies in Shanghai and Shenzhen were up a good one percent. In Hong Kong, the index rose 2.5 percent after rising more than 5 percent the previous day. In Tokyo, meanwhile, the Nikkei index ended trading little changed at 27,663 points. Investors also held back before the Fed’s upcoming interest rate decision.

Wheat price falls after Russia announcement

The promised Return of Russia to the grain deal with Ukraine ensures relaxation on the grain market. Wheat fell 5.5 percent to $8.525 a bushel. Russia will resume its involvement in the Black Sea grain trade, the Defense Ministry said in Moscow. Russia suspended its participation in the deal over the weekend, saying it could not guarantee the safety of civilian ships over a drone attack on its fleet.

Euro recovers from yesterday’s losses

The exchange rate of the euro rose against the dollar before the monetary policy decisions in the USA. By midday, the shared currency was trading at $0.9898, slightly higher than the previous day. The euro was able to recover a bit from the price losses of the previous day. The fact that the industrial mood in the euro zone is still on the downward trend is causing little movement on the currency market. S&P Global’s Purchasing Managers’ Index fell to its lowest level since the 2020 coronavirus shock in October.

Oil prices are turning negative

Oil prices have fallen after initial gains. A barrel (159 liters) of North Sea Brent for delivery in January cost 94.46 US dollars at midday. That was 18 cents less than the day before. The price of a barrel of West Texas Intermediate (WTI) for delivery in December fell 20 cents to $88.17. In the morning, the most recent development, the sharp decline in US oil reserves, had given prices a boost. This can be an indication of increased demand or insufficient supply.

As trading progressed, however, the focus was more on the Fed’s monetary policy decisions, which are expected in the evening. If the central bankers act too aggressively in raising interest rates, this could weigh on the economy and thus dampen demand for crude oil.

Auto1 cuts sales forecast for 2022 again

The online used car dealer Auto1 is further reducing its sales expectations for the current year. The company, which is listed in the SDAX, announced today that around 655,000 vehicles would be sold. This corresponds to the lower end of the target range, whose upper brand Auto1 had already capped at 725,000 units in August. However, sales should at least reach the middle of the previous forecast at 6.5 to 6.7 billion euros. In addition, the operating loss before interest, taxes, depreciation and amortization (adjusted Ebitda) adjusted for special items should remain at two to three percent of sales.

Screw group Norma increases thanks to price increases

The Hessian automotive and industrial supplier Norma grew thanks to price increases and positive currency effects in the third quarter. With an increase in sales of 19.9 percent to 318.6 million euros, the adjusted operating result (EBIT) rose to 27.0 (previous year: 22.8) million euros, as the screw group announced today. The operating return on sales remained at the previous year’s level of 8.5 percent due to rising costs.

Südzucker expects even more sales

The Südzucker Group is raising its annual targets again because of better business with sugar. Sales for the current financial year (as of the end of February) are now expected to climb to between EUR 9.7 billion and EUR 10.1 billion after EUR 7.6 billion in the previous year, as the SDAX-listed company announced today. The group only increased its forecast in mid-October and envisaged a range of 9.4 to 9.8 billion euros. The improvement is supported by the sugar segment. After the news broke, Südzucker shares rose by 3.7 percent.

Strong US business boosts Novo Nordisk

Insulin maker Novo Nordisk did better than expected last quarter and raised its targets again. Above all, the Danes’ business with medicines to combat obesity is flourishing, but the core business with insulins has recently picked up sharply. Investors on the stock exchange were pleased. The stock gained more than 5 percent at midday.

Aston Martin lowers full-year guidance

Sports car manufacturer Aston Martin Lagonda lowered its delivery target due to supply chain disruptions in the third quarter. In the current year, the total number of all vehicles delivered to wholesalers is likely to be 6,200 to 6,600, the company said in Gaydon, UK. Previously, the board wanted to deliver at least 6,600 cars to sales partners. In addition, the managers are expecting additional costs that are likely to put significant pressure on the planned improvement in the operating margin: instead of an increase of 3.5 to 4.5 percentage points, the adjusted operating margin (Ebitda margin) in 2022 should only increase by around 1 to 3 gain percentage points.

AirBnB cautious despite strong fourth quarter numbers

Despite a surprisingly strong jump in revenue and earnings, AirBnB’s fourth-quarter targets fall short of market expectations. Sales will probably be between 1.8 and 1.88 billion dollars, the accommodation agent said last night. The mean value from this is below the previous analyst forecasts. The company warned of a slowdown in demand after more than 100 million room nights were booked on the platform in the past few months – more than ever in a third quarter. The strong dollar also weighed on the balance sheet. The stock fell about 7 percent in after-hours trading.

AMD’s outlook falls short of expectations

After a quarterly result within the framework of the forecasts that were scaled back a few weeks ago, AMD is cautious about the annual financial statements. In the last quarter of 2022, sales are expected to be $ 5.5 billion, plus or minus 300 million euros, the chip manufacturer said. Analysts had previously expected $5.85 billion. The company pointed to lower demand for PCs and high-performance chips for data centers. Among other things, the industry is struggling with the repeatedly imposed corona lockdowns in China. The problems are exacerbated by US restrictions on the export of certain chips.

“Tinder” payment services give Match sales growth

The growing popularity of paid premium subscriptions to “Tinder” brought the operator of the dating app a surprisingly strong increase in sales. Match said revenue rose 6 percent to $810 million in the past quarter. Analysts had expected an average of $ 793 million. For the current quarter, however, the company expressed caution. Due to the weak economy and burdens from the strong dollar, it expects revenues of 780 to 790 million dollars, falling short of market expectations. Match shares nonetheless rose 16 percent in US after-hours trading.