Market report: DAX before price slide |

market report

As of: April 5, 2024 7:42 a.m

The risks on the stock market increased significantly overnight. Bankers at the US Federal Reserve were extremely cautious about cutting interest rates. Investors are shocked – the DAX is threatened with significant price losses.

The fear of an escalation of the Middle East conflict, the rise in oil prices, but above all doubts about the Fed’s monetary policy course – it is a whole potpourri of worries and fears that is causing investors to flee the stock markets at the end of the week.

The DAX is likely to open deep in the red and is threatened with a significant downward price gap. The broker IG is currently pricing the 40 German standard stocks 1.2 percent lower at 18,174 points. The day before, the German leading index had gently continued its recovery course that had begun in the middle of the week and gained 0.2 percent to 18,403 points.

It is primarily cautious statements from Fed bankers about interest rate cuts that are spoiling investors’ appetite for stocks at the end of the week. According to one Fed member, the US central bank may even refrain from cutting interest rates entirely this year.

This applies in the event that progress in reducing inflation stalls, said the regional central bank president of Minneapolis, Neel Kashkari, yesterday. Price developments in January and February were “somewhat worrying”.

The statements seemed like a cold shower on the already nervous US stock market due to the upcoming publication of the monthly labor market report today. The most important indices, which had previously been in the plus, slipped significantly into the red.

The leading index Dow Jones lost almost 600 points in two hours and ultimately closed 1.4 percent lower at 38,596 points. The Nasdaq technology exchange index also lost around 1.4 percent to 16,049 points after a daily high of 16,467 points. The broader S&P 500 fell 1.3 percent to 5,147 points.

The stock market in Japan also stumbled in the morning. The Nikkei index, which includes 225 stocks, is 2.1 percent lower in late trading. The stock exchanges in China are still closed for a holiday. It’s not just the newly stirred up fears about interest rates that are causing investors to stay away from stocks.

“The risk of an escalation in the Middle East conflict is increasing. There is some nervousness in the air, not helped by the rise in oil prices amid rising tensions between Israel and Iran,” said Rodrigo Catril, senior foreign exchange strategist at National Australia Bank.

Oil prices continued to rise this morning. A barrel (159 liters) of North Sea Brent costs a peak of $91.22, which is the highest price in five months.

Gold investors, however, dislike the prospect of long-term high interest rates. The price of the yellow precious metal fell by 0.4 percent this morning to $2,278 per troy ounce. The day before, gold had hit a record high of $2,305.61. The euro fell slightly in Asian currency trading to $1.0828.

Airbus shares in the DAX could be worth a look today. According to insiders, the aircraft manufacturer and its US competitor Boeing are approaching an agreement on the division of their supplier Spirit AeroSystems. Airbus and Boeing are exploring how to unbundle their respective ties to Spirit, several people familiar with the matter told Reuters.

According to an insider, an activist US investor has joined the food delivery service Delivery Hero. New York investor Sachem Head holds 3.6 percent of Delivery Hero in the form of shares and derivatives and is seeking operational and personnel changes, a person familiar with the events told the Reuters news agency.

The weeks-long shutdown of Boeing 737-9 Max aircraft after a near-miss in January resulted in high costs for the aircraft manufacturer. Boeing paid Alaska Airlines around $160 million in the last quarter as compensation for lost revenue and additional expenses.

Disney wants to gradually tighten the pace against password free riders on its streaming service. In June, action will initially only be taken in a few countries, said Disney boss Bob Iger on CNBC on Thursday. The sharing of passwords beyond one household should be prevented across the board in September.

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