market report
At the beginning of the new stock exchange week, the DAX should not make any big jumps. After the small expiry date, investors should now reorient themselves on the German stock market.
In the DAX, the sideways movement of the past few days will probably continue for the time being. The broker IG currently assesses the German standard values at 16,145 points and thus 0.2 percent below their XETRA closing price. On Friday, the DAX closed 0.2 percent lower at 16,177 points.
Before the weekend, options on the DAX and individual shares on the Eurex derivatives exchange had expired. In the past, the leading German index often formed important market turning points around expiration days, which were then of importance for many weeks. From a technical perspective, the DAX threatens to reach a high – the result would be falling prices.
From a fundamental perspective, it is above all the forthcoming central bank meetings that are causing investors to shy away from larger commitments. This week, both the US Federal Reserve and the European Central Bank (ECB) are likely to raise their key interest rates by 0.25 percentage points each. Economists and investors have been puzzling for weeks as to whether the Fed and ECB could have reached their interest rate peak.
In addition, there is still some important economic data to come, which also has the potential to move share prices. Among them are the July purchasing managers’ indices, which will be released today for Germany, the euro zone and the US. The reporting season on both sides of the Atlantic is also gaining momentum as the week progresses.
However, investors on the Asian stock exchanges are not deterred by such uncertainties and are buying shares. The leading Japanese index, which comprises 225 values, was 1.2 percent higher shortly before the close of trading in Tokyo. The Shanghai Stock Exchange is currently up 0.7 percent.
The specifications from Wall Street are restrained: The broad S&P 500 closed with little change at 4536 points. The tech-heavy Nasdaq fell 0.2 percent to 14,033 points. In contrast, the Dow Jones closed minimally up at 35,228 points and thus posted the tenth daily gain in a row. This is the longest winning streak in almost six years.
In early foreign exchange trading, the European common currency is almost unchanged against the dollar. One euro currently pays 1.1121 dollars. The price for a troy ounce of gold is trending sideways at just under 1961 dollars.
The focus of US investors in particular is the reweighting in the Nasdaq 100 at the beginning of the week. The weight of the tech giants is to be reduced and smaller companies given more influence. The “Magnificent Seven” – Apple, Microsoft, Alphabet, Amazon, Nvidia and Tesla – have a combined market capitalization of around $11.5 trillion. Most recently, according to the market experts at Postbank, they accounted for 55 percent of the index.
Under its owner Elon Musk, Twitter wants to say goodbye to the blue bird and introduce an “X” as a logo. The change will come worldwide this Monday, Musk announced yesterday in a series of tweets. After acquiring the short message service for around $44 billion last October, the tech entrepreneur announced that the purchase of Twitter was “an accelerator for the creation of X, the everything app”.