market report
Status: 12/30/2022 10:00 a.m
On the last day of trading in 2022, the DAX is again struggling with the important mark of 14,000 points. There are hardly any possible drivers. It could be the worst stock market year in four years.
The psychologically important mark of 14,000 points remains in focus for the leading German index even on the shortened last trading day of the year. After being able to recapture it yesterday and closing at its highest level for a good week, it falls below it again today.
“Yesterday’s rally in the German stock index was more of a technical reaction than anything else. When prices are rising but trading volume is almost non-existent, at least a little skepticism is warranted,” explains Jochen Stanzl, an analyst at online broker CMC Markets.
Will it be the worst stock market year for the DAX in four years?
The DAX started trading today with a minus of 0.55 percent and thus slipped to almost 13,986 points. Sales remained very thin at the beginning as many investors have already closed their trades. The Frankfurt Stock Exchange closes at 2 p.m. on the last trading day of the year. A minus of almost three percent is currently emerging for the month of December.
Viewed over twelve months, the DAX is heading for a loss of almost twelve percent. That would be the worst stock market year in four years. The trigger was Russia’s war of aggression in Ukraine. Energy prices skyrocketed, fueling violent inflation that required central bank intervention. As a result, interest rates rose rapidly and significantly, making equities generally less attractive.
Investors have recently been concerned about the future monetary policy of the major central banks and the associated risk of a recession. Investors were also concerned about the uncertainty about the situation in China following the recent easing of the strict corona policy. “Preventing a downturn is a difficult task,” said Vishnu Varathan, an economist and strategist at Bank of Japan Mizuho.
Grenke concludes purchase agreements for other franchise companies
Among the individual values, the shares of the leasing specialist Grenke come into focus today. The SDAX company announced the purchase of four more franchise companies for a total of 3.5 million euros. In this context, a trader recalled the harsh criticism of the lack of transparency at Grenke, which short sellers – i.e. market participants who speculate on falling prices – had practiced. “The acquisition of the remaining shares in the franchise companies could lead to stricter corporate governance,” the dealer concluded. The shares reacted slightly negatively at the start of trading.
China stock markets follow Wall Street higher
Stock markets in China rose today. Weekly US jobs data yesterday gave investors hope that a slowing labor market could prompt the US Federal Reserve and other major central banks to take smaller interest rate hikes. The courses on Wall Street had already risen significantly, the Dow Jones climbed 1.1 percent. The Shanghai Stock Exchange advanced 0.6 percent to 3,092 points, while the index of major companies in Shanghai and Shenzhen rose 0.5 percent to 3,876 points. The Hong Kong market also climbed half a percent to 19,834 points.
The mood in Japan, on the other hand, was somewhat depressed. The Nikkei index, which comprises 225 stocks, closed little changed at 26,095 points on the last trading day of 2022, recording its first annual loss since 2018. The broader Topix index fell by 0.2 percent to 1892 points. Investors preferred to stay under cover ahead of the Lunar New Year holiday, said Shoichi Arisawa, investment expert at broker IwaiCosmo. In Japan, the stock exchange will not reopen until Wednesday due to the New Year’s holiday.
oil prices rise
Oil prices pared their weekly losses a little further. A barrel (159 liters) of North Sea Brent cost $83.96 in the morning. That was 50 cents more than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade rose 52 cents to $78.91. Market observers spoke of a comparatively low trading volume shortly before the end of the year.
All in all, oil prices have fallen somewhat since the Christmas holidays after the corona wave in China had dampened hopes of a rapid improvement in the economic development of the world’s second largest economy and thus of stronger demand for crude oil.
Euro gives way
The euro fell on the last trading day of the year. In the morning, the common currency was trading at $1.0646, slightly lower than the previous evening. Shortly before the end of the year there are only a few economic data on the program that investors in the foreign exchange market could use as a guide. Data on the mood of purchasing managers in the US is expected in the afternoon.
Mlnarsky starts as Human Resources Director at Commerzbank
Commerzbank will have a new HR manager in the new year: Sabine Mlnarsky will join the Executive Board of the Frankfurt MDAX group on January 1, 2023. The lawyer, who was previously responsible for HR issues at the Austrian Erste Bank Group, succeeds Sabine Schmittroth. Schmittroth announced in February that she would be leaving Commerzbank at her own request at the end of 2022. Commerzbank published the personnel details on July 6th.