market report
The DAX remains within reach of its record high at the beginning of the week. Now that many investors are returning from a long weekend, it remains to be seen how sustainable the recent price gains are.
At the start of the new stock market week, the DAX is lurking below its record high. The broker IG currently estimates the leading German index at 18,787 points, 0.1 percent higher. Before the weekend, the DAX had set a new record of 18,846 points during the day.
From a technical perspective, the DAX has opened the door wide open towards the 19,000 point mark. However, sales on public holidays and bridge days are traditionally rather thin, so that on such days just a few transactions are enough to move the DAX strongly in one direction or the other. Confirmation of the latest record high is still pending.
The US inflation data due on Wednesday is likely to become the litmus test for the latest price rally, as the rise in the German stock market is based in particular on the hope that key interest rates in the US will fall sooner rather than later. On average, economists expect an inflation rate of 3.6 percent in April.
However, if, contrary to expectations, it turns out on Wednesday that inflation in the United States rose significantly in April, things could quickly become uncomfortable on the stock markets. Because then the US Federal Reserve Bank could find itself forced to take a tougher monetary policy course.
Ahead of the release of US inflation data, investors are holding back on investments in Asian markets. The Nikkei index, which includes 225 stocks, was 0.4 percent lower at 38,087 points in late trading. The Shanghai stock market is trending sideways.
The US stock exchanges are also sending rather cautious signals for the DAX. Investors on Wall Street also held back at the end of a strong week on the stock markets. The Dow Jones index of standard stocks closed 0.3 percent higher at 39,512 points last Friday. The broader S&P 500 gained 0.2 percent to 5,223 points. The index on the Nasdaq technology exchange was virtually unchanged at 16,341 points.
A lot on the gold market now also depends on the future interest rate prospects in the USA. A troy ounce of gold costs $2,355 this morning, 0.2 percent less. The euro is trending sideways at $1.0771 in Asian forex trading.
Among the individual stocks in the DAX, Rheinmetall shares could be worth a look today. The arms company wants to cut off a particularly large piece of the federal government’s 100 billion special fund cake. “You can assume that in the end between 30 and 40 billion euros will come to us from the special fund,” said company boss Armin Papperger to the “Süddeutsche Zeitung”.
In the collective bargaining dispute at Deutsche Telekom, the ver.di union called for warning strikes in customer service nationwide on Sunday. These are to continue today, parallel to the fourth round of negotiations scheduled for Monday and Tuesday in Potsdam, as ver.di announced. A central rally is planned there today, with 4,500 employees expected.
A Boeing plane from the airline TUIfly had to turn back on two consecutive days after taking off from Frankfurt. On Thursday around 1:20 p.m. the 737-800 aircraft made a safety landing in Frankfurt, a spokeswoman for Fraport AG said on Friday evening. The plane was on its way from Frankfurt to Gran Canaria.
The protest against the US electric car manufacturer Tesla is expected to continue after several days of action in Grünheide near Berlin. A protest camp against company boss Elon Musk’s only European car factory was disbanded on Sunday, but some alliances announced further actions or wanted to reserve the opportunity.