market report
The DAX bulls are preparing to recapture the important mark of 15,700. Looking back, however, shows that the bears will not give up this bastion without a fight. Tailwind for the markets comes from China.
At the beginning of the new stock market week, the DAX is facing price gains. Tailwind for the stock exchanges comes from Beijing, where the government has announced new measures to support the crisis-ridden Chinese markets. The broker IG assesses the German standard values 0.6 percent higher at 15,718 points.
The fight for the mark of 15,700 points is entering the next round. A jump above this would put the DAX in calmer waters and reduce the chance of a retest of the July/August lows at 15469/15456. Looking back, however, shows that the bears will not give up this bastion without a fight.
The German stock market barometer only tried to recapture the 15,700 point mark on Friday and rose to 15,740 points during the course of the day. At the end of trading, however, only a meager plus of 0.1 percent to 16,632 jobs remained.
From a fundamental perspective, however, interest rate concerns should continue to weigh on the markets. At the central bank symposium in Jackson Hole in the US state of Wyoming, US Federal Reserve Chairman Jerome Powell left the door open for further interest rate hikes without becoming more specific.
“The US Federal Reserve stands ready to raise interest rates further if needed,” he said. The President of the European Central Bank (ECB), Christine Lagarde, stressed that the fight against high inflation was not yet won. This means that there is still a great deal of uncertainty about the future course taken by the monetary watchdogs.
Meanwhile, the continuing weakness of the Chinese economy – which has been a major drag on the markets for weeks – has now also called the government in Beijing into action. This announced that it would halve the stamp duty on stock trading and take further measures to support the real estate market. As a result, the Shanghai stock exchange rose by 2.0 percent. The leading index Nikkei, which comprises 225 stocks, was 1.6 percent higher shortly before the close of trading in Tokyo.
Positive guidelines for DAX trading also come from Wall Street: The US stock exchanges had increased somewhat in nervous trading on Friday. The Dow Jones index of standard values closed 0.7 percent higher at 34,346 points. The tech-heavy Nasdaq advanced 0.9 percent to 13,590 points. The broad S&P 500 gained 0.7 percent to 4,405 points.
The euro rose above the $1.08 mark at the beginning of the week. Currently, 1.0806 dollars are paid for one euro. The European single currency has been in a downward trend since July. A troy ounce of gold costs $1,916 in the morning.
In the DAX, the shares of VW, Mercedes-Benz and BMW could be worth a look today. According to a study by the auditing and consulting company EY, the world’s largest car companies are still on course for growth. Compared to the same period last year, sales in the second quarter of the year increased by 18.1 percent, earnings before interest and taxes (EBIT) grew by 31.3 percent. Sales also increased by more than a tenth between April and June.
The Thyssenkrupp hydrogen subsidiary Nucera increased sales and earnings sharply in the past quarter. Earnings before interest and taxes (EBIT) rose to seven million euros in the third quarter of the 2022/23 financial year (as of the end of September) from four million euros previously. Nucera was able to almost double sales to 187 million euros from 99 million euros a year ago.
The marine company Thyssenkrupp Marine Systems (TKMS) is still striving for independence. “Our owner (Thyssenkrupp AG) recently confirmed this again,” said shipyard boss Oliver Burkhard of the German Press Agency. “An independent Marine Systems is a better way forward: for Thyssenkrupp, TKMS, for our customers, for Berlin and thus for Germany.”
Shares in heavily indebted Chinese real estate developer China Evergrande fell 86.7 percent on the first day of trading after 17 months. Before trading resumed, Evergrande had announced that it had halved the loss in the first half of the year thanks to higher income. Evergrande is at the center of the crisis in China’s real estate sector, which has led to a series of defaults since late 2021.
The US conglomerate 3M could get off lighter than some experts feared in the dispute over allegedly defective earplugs for the US military. The company has tentatively agreed to pay more than $5.5 billion to settle more than 300,000 lawsuits, Bloomberg reported. Some analysts had estimated the cost of a settlement at around $10 billion.
The takeover of the Irish drug manufacturer Horizon Therapeutics by the US biotechnology group Amgen could still go ahead. The US supervisory authority FTC announced that it would pause its internal process to block the project. This opens the door to talks about the agency’s concerns. Amgen is offering a good $26 billion for Horizon.