market report
Status: 04/12/2023 07:28 a.m
The mood on the German stock market is subdued. The DAX is unlikely to make any big leaps today – with good reason: an important date on the stock exchange agenda is warning investors to exercise restraint.
The DAX is expected to be very close to yesterday’s closing price at the start of trading. The broker IG assesses the German standard values at 15,659 points at the moment. But investors have a good reason to hold back with purchases at the moment. After all, with the publication of US consumer prices and the latest Fed minutes, two important economic dates are on the stock market agenda today.
DAX has the 16,000 points in mind
At the start of the shortened trading week, the DAX started an attack on the high for the year at 15,737 points yesterday, but then turned down shortly below, at 15,726 points. The DAX chart is now at a double high, which calls for caution in the short term.
“In the coming days, the DAX will have to refine the ongoing rally, so it has to defend the high level throughout the day and finally dare to break out. Then the psychological barrier of 16,000 would be the next tangible target,” explains Market analyst Konstantin Oldenburger from broker CMC Markets. The inflation data from the USA could be a catalyst for this.
US inflation in investor focus
In fact, the publication of consumer prices this afternoon should be the highlight of the current stock market week. It depends on the development of consumer prices whether the US Federal Reserve can even afford to end its rate hike cycle as planned in the near future. In February, consumer prices in the US rose by 6.0 percent compared to the same month last year. The US inflation rate fell to its lowest level in over a year.
IMF warns of dangers for the financial system
According to a report by the International Monetary Fund (IMF), the global financial system is being tested by persistently high inflation and rising interest rates. “After years of low interest rates, tighter monetary policy poses a challenge to banks’ effective risk management in securities portfolios and loans,” says the Global Financial Stability Report, published in Washington on Tuesday.
Dow up, Nasdaq closes down
US stock markets failed to find common ground on Tuesday in anticipation of inflation data due on Wednesday. The Dow Jones index of standard values gained 0.3 percent to 33,685 points. The broader S&P 500 was virtually unchanged at 4109 points. The index of the technology exchange Nasdaq lost 0.5 percent to 12,032 places.
Warren Buffett boosts Japanese stocks
Meanwhile, markets in Japan continued their rally earlier this morning for the fourth straight day, bolstered by rising consumer spending and stock market guru Warren Buffett’s optimism. The Nikkei index, which comprises 225 stocks, is up 0.6 percent at 28,084 points shortly before the close in Tokyo.
The 92-year-old investor legend said yesterday he was proud of his investments in Japan’s leading trading houses and that he was “still considering some” other investments in Japan.
Euro continues above $1.09
In Asian FX trading, the dollar remains under some pressure. The tension ahead of the US consumer price data expected today had already hit the US currency yesterday. At the same time, the euro was able to rise above the $1.09 mark again. Also in the morning, the European currency remains well above this mark with currently 1.0927 dollars.
Gold price on track to record high
The weak dollar makes commodities traded in dollars cheaper for investors in other currency areas, thereby increasing demand. The price of gold can also benefit significantly from this. The price of the yellow precious metal surges to $2020 in the morning. The all-time high at 2075 from the Corona year 2020 is gradually coming into view again.
Deutsche Bank stops last IT activities in Russia
Deutsche Bank drew attention to itself in the DAX in the morning. According to a newspaper report, the money house is closing its remaining software technology centers in Moscow and St. Petersburg. With this step, the German lender wants to end its two-decade dependency on Russian IT know-how, reports the newspaper “Financial Times”.
Volvo performs better than expected
According to preliminary figures, the Swedish truck and bus manufacturer Volvo achieved more sales and earnings in the first quarter than experts had expected. The proceeds were 131.4 billion Swedish crowns. Analysts had only expected 118.4 billion crowns. Adjusted operating profit was 18.4 billion crowns. Experts had also expected less here.