Investors unsettled: bull trap in the DAX?

market report

Status: 09.03.2023 7:30 a.m

According to the new statements by Fed boss Jerome Powell, the DAX is treading water. There are no signs of an attack on the high for the year. This means that there is still the risk of a false breakout on the upper side.

At the start of trading, the DAX is likely to initially remain largely in place. The broker IG assesses the 40 German standard values ​​​​at the hour very close to their previous day’s closing price of 15,632 points. However, the leading German index is still keeping its sights on its high for the year.

Mixed chart technique in the DAX

Only on Tuesday did the DAX set a new record at 15,706 points. He initially sent a clear buy signal, which was countered on the same day. The relapse below the old breakout marks at 15,659/15,634 points left a stale aftertaste, as Jörg Scherer, Head of Technical Analysis at HSBC, emphasizes.

From a technical point of view, there is still a risk of a false breakout on the upper side, a so-called bull trap. Only a rapid rise above the high for the year would ban this danger and help the DAX to regain momentum.

Slight losses in the Dow, Nasdaq recovers

Subdued specifications for DAX trading come from Wall Street. The Dow Jones closed 0.2 percent lower at 32,798 points in the middle of the week. Meanwhile, the tech-heavy Nasdaq advanced 0.4 percent to 11,576 points. The broad S&P 500 gained 0.1 percent to 3992 points.

Uncertainty over future Federal Reserve policy continues to make Wall Street investors nervous. On the second day of his appearance before Congress, US Federal Reserve Chairman Jerome Powell dampened concerns about interest rates rising more quickly.

“We haven’t made a decision about the March session yet,” he said. The market clearly interpreted his statements to the US Senate Banking Committee on Tuesday in the direction of a renewed increase in interest rate hikes.

Gains in the Nikkei, China stock markets in the red

Mixed signals are coming from Asian stock markets. The Nikkei index, which comprises 225 values, was 0.6 percent higher at 28,600 points at the close of trading in Tokyo. 188 of the values ​​rose, while 28 fell and nine remained unchanged.

In contrast, the stock exchange in Shanghai was 0.3 percent in the red. The index of the most important companies in Shanghai and Shenzhen lost 0.4 percent. Fresh inflation data from China showed domestic demand is still tepid despite the lifting of strict corona restrictions.

Little movement in the euro and gold

The euro is treading water in Asian forex trading. At the hour, 1.05553 dollars are paid for one euro. Little movement on the gold market as well: the troy ounce of gold is trending sideways at 1815 dollars.

Deutsche Post raises dividend after record year

In the DAX, the focus is on the yellow share in the morning. After a record year, the outgoing Post boss Frank Appel is expanding the current share buyback program by another billion euros. The dividend is to increase from EUR 1.80 in the previous year to EUR 1.85 now. For the current fiscal year, the Bonn-based company expects business momentum to cool down.

VW diesel affair: court wants evidence

The Braunschweig Higher Regional Court (OLG) considers extensive evidence to be necessary in the multi-billion dollar test case involving investors in the VW diesel affair. In view of the expected time-consuming measure with an open outcome, the Senate recommended that those involved examine settlement talks, the court said.

LEG Immobilien cancels dividend

The Düsseldorf-based housing group LEG Immobilien does not want to pay its shareholders a dividend for the past year. The MDAX group announced that a suspension of the dividend payment for the 2022 financial year should be proposed to the Annual General Meeting on May 17.

American Express raises dividend

The credit card company American Express is launching a new share buyback program. Up to 120 million share certificates are to be acquired. The program replaces an old one that still has 36 million outstanding papers to buy back. In addition, the quarterly dividend will be increased by 15 percent.

Spotify is turning the app upside down with “Home Feed”.

Music streaming market leader Spotify is redesigning its app and making it look more like Tiktok and Instagram with a “Home Feed”. In the space, users will be able to scroll through suggestions for songs by their favorite artists, new music, and podcasts and audiobooks.

Uber wants to divest itself of logistics business

According to a media report, the US transport service provider Uber is considering an IPO or a spin-off of its freight logistics business via a sale. The company is currently discussing options with potential advisors, Bloomberg reported, citing people familiar with the matter. An IPO is more likely than a sale.

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