Market report: Breathe easy after record high


market report

Status: 30.08.2024 07:29 a.m.

After yesterday’s record-breaking run, DAX investors are likely to take things a little slower at the end of the week. However, support for the prices is coming from Wall Street.

Investors on the German stock market are likely to take a breather after the rapid price rally of the past few days. The broker IG currently values ​​the DAX 0.3 percent lower at 18,858 points. The day before, the German leading index had set a new historical high of 18,936 points.

It wasn’t just the hopes of rapid and possibly extensive interest rate cuts in the USA and the Eurozone that drove the DAX to a record high. According to market experts, the fear of missing out was also behind this. The term FOMO was coined for this: Fear Of Missing Out. And this is also a very strong driving factor of human action on the stock market.

Investors who had recently been waiting on the sidelines feared they would miss the best of the rally. They brushed aside their concerns and jumped in – and in doing so only drove prices even higher.

Now it remains to be seen how far interest rate hopes and FOMO can drive prices up. The chart technology is positive, as the DAX has sent one of the best buy signals with its new record high. HSBC expert Jörg Scherer had already announced a DAX price target of 20,000 points in the middle of the week.

Seasonality, on the other hand, calls for caution: According to statistics, the probability of price losses is still high up until the end of October. The “best six months” on the stock market only begin in November.

Meanwhile, the DAX is receiving a tailwind from Wall Street. The leading index Dow Jones Industrial climbed to a record high of around 41,578 points yesterday and ended trading with an increase of 0.6 percent at 41,335 points.

The broader S&P 500 closed little changed at 5,591 points, and the Nasdaq technology exchange index fell 0.2 percent to 17,516 points. The US stock markets have therefore coped very well with the disappointment over the Nvidia figures.

The Wall Street guidelines are having an impact on the Asian stock markets. Japan’s Nikkei index is up 0.4 percent in late trading in Tokyo. “The Dow’s strong close boosted domestic stocks,” said Naoki Fujiwara, senior general manager at Shinkin Asset Management.

In Asian currency trading, the euro recorded a slight loss of 0.1 percent to 1.1072 dollars. Since its recent high of 1.12 dollars, the European common currency has lost more than one cent. A troy ounce of gold is trading at 2,514 dollars, 0.2 percent lower.

On the raw materials market, the price of Brent crude oil from the North Sea rose by 0.2 percent to 80.12 dollars per barrel (159 liters). US oil WTI was barely changed at 76.00 dollars. Investors are worried about the supply in the Middle East.

Thyssenkrupp shares are in the spotlight on the German stock market. The dispute over the reorganization of the steel division at the industrial group has escalated further: three steel board members and four supervisory board members have resigned, including chief supervisor Sigmar Gabriel and steel boss Bernhard Osburg. The board members’ mandates will end with immediate effect, Gabriel announced in Duisburg after a supervisory board meeting of the steel division.

The strike at the Lufthansa subsidiary Discover Airlines is being extended. The Cockpit Association (VC) announced yesterday that it would extend the strike until Sunday. The union is thus underlining its determination in the current wage dispute. The strike was originally supposed to last from Tuesday to Friday. Discover described the extended strike as a further escalation that was completely unacceptable and without any measure.

According to media reports, iPhone provider Apple and chip manufacturer Nvidia are negotiating their participation in OpenAI’s planned financing round. The software company Microsoft, which has already invested around ten billion dollars in the ChatGPT developer, would also provide additional capital, wrote the Wall Street Journal. The news agency Bloomberg reported on Nvidia’s interest in OpenAI.

The high demand for high-performance computers for artificial intelligence (AI) is helping Dell achieve surprisingly strong growth. “Our AI momentum increased in the second quarter,” said Jeff Clarke, the PC and server provider’s day-to-day head of operations. Revenue from the sale of servers increased by 80 percent, reaching a record high of $7.7 billion.

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