Lurking below the high for the year: trend reversal in the DAX?


market report

Status: 4/4/2023 7:31 am

Thanks to good indications from the overseas stock exchanges, the DAX should initially go uphill today. The stock market barometer has recently found it difficult to crown its price rally with a new high for the year – that has consequences.

Bolstered by good Wall Street forecasts, the DAX should start the new trading day with a small premium. The broker IG assesses the German standard values ​​0.2 percent higher at 15,619 points.

DAX double high urges caution

At the beginning of the week, the DAX investors had lost their courage at a crucial point: the leading German index turned down just on Friday’s high. In the short-term DAX chart there is now a double high at 15,659 points. Double tops are reversal signals, harbingers of a trend reversal. Conversely, if the DAX overcomes this resistance, the way to the high for the year (15,706) would be clear. According to chart technical experts, the further increase towards the all-time high (16,290) is even tempting.

Oil prices continue to rise

Investors continue to focus on the price of oil in the morning. Saudi Arabia and other member countries of the oil association Opec+ surprised the markets on Sunday by announcing that they would cut oil production. That drove oil prices up by around eight percent yesterday. Oil prices continue to rise in the morning. A barrel (159 liters) of North Sea Brent costs $85.39, 0.5 percent more than the day before.

The sharp rise in oil prices had once again fueled concerns on the markets about persistently high inflation. This in turn could encourage the central banks to raise interest rates further. The specter of interest rates should return to the trading floor, predicted Jürgen Molnar, capital market strategist at broker RoboMarktes.

Nasdaq down, Dow showing strength

Rising oil prices sparked mixed reactions on Wall Street yesterday. The interest rate fears fueled by this weighed on technology stocks at the start of the week and pushed the Nasdaq index down 0.3 percent to 12,189 points.

On the other hand, oil companies like Chevron benefited from the price jump and let the Dow Jones index of standard values ​​rise by around one percent to 33,601 points. The broad S&P 500 gained 0.4 percent to 4124 points.

Gentle price gains in the Nikkei

Energy stocks also led the winners’ lists on the Asian stock markets in the morning. The Nikkei index, which comprises 225 stocks, is up 0.3 percent at 28,270 points shortly before the close in Tokyo. The Shanghai stock exchange is up 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.2 percent.

Euro back below 1.09 dollars

Dollar shows strength in Asian forex trading. At the same time, the European common currency falls back below the $1.09 mark. Currently, 1.0896 dollars are paid for one euro. An ounce of gold in the morning costs $1,980.

VW, Audi and BMW increase sales in the USA

Among the individual stocks in the DAX, the car companies drew attention to themselves in the morning. Volkswagen benefited from the car boom in the USA and sold 4.4 percent more vehicles in the first quarter than a year ago. Urban SUVs such as the Atlas SUV model, which is very popular with US customers, accounted for 90 percent of sales.

The luxury class manufacturer Audi, which belongs to the VW Group, even increased sales by 49 percent. Audi’s rival BMW also increased sales in the USA by 11.9 percent.

IT conversion annoys Postbank customers

Deutsche Bank stock might also be worth a look. The latest wave of technology conversion at the Postbank subsidiary has led to numerous complaints about error messages and problems registering in online banking. Deutsche Bank, on the other hand, spoke of an overall successful transfer of millions of pieces of data.

Tesla has to pay employees millions for racism

Electronics manufacturer Tesla has been ordered by a US court to pay a former employee $3.2 million for unchecked racial harassment at its California plant. The jury awarded Owen Diaz, an African-American man who worked as an elevator, mental cruelty damages. Tesla CEO Elon Musk said Diaz would not have received compensation if the judge had admitted new evidence from the company when the case was retried.

Replaced Twitter logo with Dogecoin icon

On Monday, Twitter users suddenly found a dog’s head in their profiles instead of the usual logo with the blue bird. The online service switched to the image, which stands for the controversial digital currency Dogecoin, without any explanation. Twitter owner Elon Musk has mentioned Dogecoin many times over the years and is currently fighting an investor lawsuit. After the logo change, the Dogecoin course temporarily jumped by around a fifth.

Activision Blizzard targeted by antitrust watchdogs over esports leagues

Antitrust officials at the US Department of Justice are taking action against industry giant Activision Blizzard, accusing it of unlawfully restricting player earnings in two of its esports leagues (Overwatch and Call of Duty). The ministry yesterday released a lawsuit and a proposed settlement with concessions from the company, which still awaits court approval.

source site