market report
Interest rate hopes are spreading on the global stock markets. Surprisingly weak US job data acts as a calming pill – this could also encourage DAX investors to make further purchases.
The DAX has a good chance of continuing the stabilization course it embarked on in the middle of the week today. The broker IG currently estimates the German leading index 0.4 percent higher at 15,157 points. The day before, the DAX initially fell to 14,948 points in early trading – the lowest level since March. However, over the course of the day it was able to make up for its losses and gain 0.1 percent to 15,100 points.
This so-called “reversal” is now fueling short-term hope that the DAX can continue its stabilization course and move further away from its low since March. However, the overarching technical chart picture still looks devastating; only a recapture of the 200-day line, which runs at almost 15,600 points, would take the worst pressure off the German standard values.
Tailwind for the DAX comes from Wall Street – there the major US indices showed a counter reaction to the losses it had previously suffered. The Dow Jones index of standard stocks closed 0.4 percent higher at 33,129 points. The technology-heavy Nasdaq advanced 1.4 percent to 13,236 points. The broad S&P 500 gained 0.8 percent to 4,263 points. The strong US dollar corrected, as did US bond yields.
The surprisingly weak job data from the private personnel service provider ADP fueled hopes that the US Federal Reserve’s monetary policy tightening would soon end. The monetary authorities are trying to combat inflation and cool down the hot labor market by raising interest rates.
In the morning, the Asian stock markets also followed the recovery trend. The weaker than expected ADP survey on the US labor market and a collapse in oil prices lifted investor sentiment. The Nikkei index, which includes 225 stocks, rose by 1.2 percent to 30,887 points. Hong Kong’s Hang Seng Index rose 0.3 percent. Markets in mainland China will remain closed until tomorrow for a holiday.
The dollar continues to decline in Asian foreign exchange trading. At the same time, the euro rises to 1.0522 dollars. Yesterday the European common currency fell to $1.0449, its lowest level since December. A troy ounce of gold is trading at just under $1,828.
The focus on the German stock market this morning is the canceled IPO of tank supplier Renk. The shares were actually supposed to be traded on the Frankfurt Stock Exchange for the first time today, but just a few hours before, Renk and its owner, the financial investor Triton, postponed the issue indefinitely.
“The market environment has deteriorated noticeably in the last few days,” said Renk, explaining the short-term cancellation. It will be examined whether the IPO will be rescheduled later. It had previously become apparent that the 27.03 million shares could only have been sold at the lower end of the price range.
The Linux specialist Suse is deleted from the SDAX. The reason is that the free float has fallen below ten percent in connection with a takeover, Deutsche Börse announced yesterday evening. Due to its market capitalization, the world’s largest bottling plant manufacturer Krones will be included in the SDAX on October 9th as the next possible successor for the software company.
The inverter manufacturer SMA Solar continues to benefit from the boom in solar systems and is raising its outlook for the full year thanks to good business in the third quarter. Sales of 1.8 to 1.9 billion euros are expected to be achieved in 2023. So far, the plan was 1.7 to 1.85 billion euros. Management expects earnings before interest, taxes, depreciation and amortization to be between 285 and 325 million euros, compared to 230 to 270 million euros previously.
Apple has released a software update that aims to fix the issue of hot devices on the new iPhone 15 Pro. The new operating system version iOS 17.0.3 also contains security updates, the company announced yesterday. Apple admitted over the weekend that some users’ iPhones were running hot due to a software error in the iOS system.