market report
The DAX is likely to continue yesterday’s late price losses and start in the red. Once again, reports from China are keeping investors in suspense.
The German stock market is likely to go down again today. The broker IG assesses the DAX 0.3 percent lower at 15,788 points. Investors react coldly to disappointing economic data from China. New developments at the ailing real estate developer Country Garden are also causing uncertainty.
The leading German index should therefore continue the price losses of yesterday. The DAX investors had lost courage in the course of trading, the German stock exchange barometer turned around at a high of 15,959 points and finally closed 0.1 percent in the red at 15,840 points.
The fact that this approach to the important mark of 16,000 points also failed puts pressure on the further DAX prospects in the short term. Overall, the ping-pong game between the 16,000 point mark and the lows of July/August below 15,500 points should initially continue.
There is no impetus from Wall Street, as yesterday there was no trading in New York due to the “Labor Day” holiday. In the morning, the future on the US leading index Dow Jones Industrial is slightly in the red.
Meanwhile, clearly negative impulses for DAX trading are coming from the Asian stock exchanges. The Shanghai stock exchange is currently down 0.7 percent, while the Japanese Nikkei is trending sideways.
China’s services sector grew at its slowest pace in eight months in August. “Weak Chinese Caixin services PMI recouped some of yesterday’s reversal in sentiment,” said Charu Chanana, market strategist at Saxo in Singapore.
Later today, investors’ eyes will turn to China’s largest private real estate developer, Country Garden. The company is due to pay interest on two bonds Tuesday after a last-minute deferral to avert a default.
Little movement on the foreign exchange market: The euro tends sideways in Asian foreign exchange trading at 1.0792 dollars. The price of gold was also almost unchanged in the morning, with a troy ounce of gold currently costing just under $1,939.
In the DAX, the focus is on Deutsche Bank shares in the morning. The financial regulator BaFin is increasing the pressure on the parent company Deutsche Bank in the face of massive complaints from Postbank customers. Since the turn of the year 2022/2023, BaFin has observed “considerable impairments in the processing of customer business at Postbank”, BaFin reprimanded. The authority examines “whether there are supervisoryly relevant deficiencies in the institute”. She asked the bank to “remove the restrictions in customer service as soon as possible”.
Tonight, after the market closes, the regular semi-annual index review of the DAX family will take place. While everything is likely to remain the same in the DAX and MDAX, index experts suspect that two newcomers to the stock exchange, the Thyssenkrupp hydrogen subsidiary Nucera and the Internet service provider Ionos, are likely to be included in the SDAX small-cap index. Basler and New Work would have to be eliminated.
In addition, the car values in the DAX should be worth a look again today, as Federal Chancellor Olaf Scholz is officially opening the IAA Mobility car and transport trade fair in Munich today. The automotive industry is hoping for a clear positioning from him on the much-discussed industrial electricity price. From the point of view of the industry, an extension of the purchase premiums for e-cars in Germany would also help to achieve the goals targeted by the government.
The failure of a supplier after the floods in Slovenia causes more and more failures at Volkswagen. After the plants in Portugal and Hanover, the main plant in Wolfsburg has now also announced that it will cut production from mid-September. The group now wants to get the problem under control quickly, and by the end of the year the issue will be “over”.
The automotive supplier Continental expects new business from manufacturers from China who are pushing into Europe. “We assume that the Chinese manufacturers will then also set up plants in Europe to build cars here,” said Conti boss Nikolai Setzer. “As a global supplier, we are a partner who supports this at all times. We stand by our guns.”
The plans of the Hamburg shipping company Hapag-Lloyd to get involved with the South Korean shipping company Hyundai Merchant Marine (HMM) will come to nothing. “We are out of this process,” said Hapag-Lloyd boss Rolf Habben Jansen. The head of the world’s fifth largest shipping company was convinced that Hapag-Lloyd would have been a good partner for the world’s eighth largest shipping company. But the South Koreans have now decided to pursue their goal with other parties.