market report
Status: 05.12.2022 07:41 a.m
The DAX should start the new trading week with little movement. However, the prospect of easing the Chinese zero-Covid policy could create a friendly atmosphere.
The broker IG assesses the DAX stable at 14,529 points before the start of trading. The leading German index closed on Friday with a gain of 0.3 percent at 14,529.39 points, the weekly minus was 0.1 percent. This ended an eight-week winning streak.
The fact that France’s head of the central bank, Francois Villeroy de Galhau, has spoken out in favor of not raising the interest rate as much as last time at the next ECB meeting could have a positive effect. The European Central Bank (ECB) should hike rates by 50 basis points on December 15, the Frenchman told broadcaster LCI. He thus strengthened expectations that the ECB will slow down the pace of monetary tightening.
Good prospects for stocks?
In addition, at the weekend China began to relax some of the corona measures that had been in place for months. “The easing of some restrictions, while not yet a complete departure from the dynamic zero-corona strategy, is further evidence of a shift in approach and financial markets appear to be more focused on the longer-term outlook than the short-term impact on activity, as virus cases are expected to continue,” said Taylor Nugent, economics expert at NAB.
For the coming weeks, Dekabank chief economist Ulrich Kater assumes that the phase of relaxation on the German market will continue and that the perspective for the end-of-year balance sheet will brighten somewhat. “Inflation is showing the first signs of a trend reversal, central banks are no longer outdoing each other with new restrictive announcements and interest rates have fallen significantly from their highs for the year,” said Kater. In addition, the real economic consequences of the high energy prices could be less than feared weeks ago.
Hardly any impetus from Wall Street
The specifications from the USA are meager: Strong US labor market data had triggered new interest rate fears and weighed on Wall Street. The Dow Jones closed 0.1 percent higher at 34,429 points on Friday. The technology-heavy Nasdaq, on the other hand, fell 0.2 percent to 11,461 points. The broad S&P 500 lost 0.1 percent to 4071 points.
There are clearer gains in the morning in China and especially Hong Kong. Investors were hoping for the strict corona policy to be relaxed here, said one market participant. The Shanghai stock exchange was up 1.5 percent. The index of major companies in Shanghai and Shenzhen gained 1.7 percent. The Japanese Nikkei closed 0.2 percent higher at 27,820.40 points.
First Lufthansa A380 landed in Frankfurt
Lufthansa’s first A380 wide-bodied jet has landed at Frankfurt Airport and is scheduled to be reactivated next summer. The machine came on Friday evening from Teruel, Spain, where it had been parked permanently after the corona shock on May 5, 2020.
S&P withdraws Twitter rating
The rating agency Standard & Poor’s (S&P) has withdrawn its credit rating for Elon Musk’s online platform Twitter due to a “lack of sufficient information”. Musk bought Twitter for around $44 billion at the end of October. The star entrepreneur took the short message service off the stock market so that it no longer had to submit public business reports.
As part of the acquisition, Musk saddled Twitter with billions of dollars in debt. Due to these burdens, S&P lowered the credit rating by five notches to “B-” on November 1 – and thus even lower into the so-called junk area for highly speculative investments.
Chemical company Ineos gets US gas
The chemical group Ineos has signed a 20-year contract for the supply of natural gas from the USA to Germany. 1.4 million tons of liquefied natural gas (LNG) are to be shipped per year, starting in 2027, as the British group announced. Ineos has a subsidiary based in Cologne that was formerly a joint venture between BP and Bayer.