market report
The DAX set a new annual record on the holiday. But that’s not all – the German stock exchange barometer already has the next target in mind. Can it break its record high today?
Investors who didn’t pay close attention to yesterday’s holiday trading on the Frankfurt stock market may be rubbing their eyes today. Finally, the DAX is listed significantly higher at the end of the week: Broker IG estimates the 40 German standard stocks at 16,230 points per hour, which corresponds to an increase of 0.4 percent compared to yesterday’s Xetra closing price.
Signs that the US is about to reach an agreement on raising the debt ceiling boosted the German stock market barometer during holiday trading. On Ascension Day, the DAX rose by 1.3 percent to 16,163 points.
In the course of trading, the leading German index marked a new annual record at 16,230 points. The German stock market barometer was last listed this high in January 2022. Now there is not much missing from the record high from 2021 at 16,290 points.
Hopes for a happy end to the dispute over the debt ceiling in the United States gave Wall Street a powerful boost yesterday. The Dow Jones index of standard values closed 0.3 percent higher at 33,535 points. The tech-heavy Nasdaq advanced 1.5 percent to 12,688 points. The broad S&P 500 gained 0.9 percent to 4198 points.
Earlier, President Joe Biden and leading Congressman Kevin McCarthy reiterated their determination to reach a speedy agreement to raise the debt ceiling and avoid a default.
The positive indications from Wall Street also help the Tokyo stock exchange to make further gains in the morning. The 225-stock Nikkei Index is up 0.8 percent shortly before the close. On the other hand, the mood on the Chinese trading centers is rather subdued, with worries about the weakening recovery of the Chinese economy dampening the mood to buy. The Shanghai stock exchange is up 0.1 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.2 percent.
The growing hope for a solution to the US debt dispute is making the US dollar popular. In turn, the euro continued to weaken in Asian forex trading, falling 0.1 percent to $1.0763. For comparison: at the beginning of May, one euro still cost around 1.10 dollars.
The stronger dollar makes dollar-denominated commodities less attractive to non-dollar investors. You can see that in the price of gold. The troy ounce of gold has recently fallen well below the $2,000 mark; in the morning it costs $1,964.
The private bank Berenberg left the rating for BioNTech on “buy” with a price target of 200 US dollars. The World Health Organization has to protect against the corona variant XBB1.5. an update of the vaccination protection with a monovalent vaccine is recommended, wrote analyst Zhiqiang Shu. This is positive for manufacturers of mRNA vaccines such as BioNTech.
The US company Apple has restricted the use of ChatGPT and other AI tools for its employees. As the “Wall Street Journal” reported, citing a document and insiders, Apple is concerned that employees could pass on confidential data during use. Apple is currently developing similar technology, the newspaper said.
Applied Materials exceeded market expectations with its sales forecast for the third quarter. The chip supplier is assuming 6.15 billion dollars (plus or minus 400 million dollars), as he announced yesterday after the US stock market closed. Analysts expect an average of $ 6.02 billion. On an adjusted basis, the company earned $2 a share compared to analysts’ forecast of $1.84 a share.