market report
The DAX continues to rise, albeit at a slower pace. Investors are hoping for further indications of upcoming interest rate cuts from today’s US jobs report. Until then, trading should be quiet.
The DAX rose slightly by around 0.1 percent to 16,641 points in early trading. Yesterday the upward trend of the past few weeks came to an end for the time being. The leading German index lost 0.2 percent to 16,629 points. The DAX recently reached a new all-time high of 16,727 points on Wednesday. The price driver continues to be the hope of soon interest rate cuts in the USA and the Eurozone. Since the beginning of November, the DAX has now increased by more than twelve percent.
Major price fluctuations are unlikely until the afternoon. Investors are now eagerly awaiting the US government’s official labor market report scheduled for today, which will be published at 2:30 p.m. Experts expect a job increase of 180,000 after 150,000 in October. The US Federal Reserve is trying to curb inflation by raising interest rates and also cool down the hot labor market.
Of all things, a report that is too good could pose a danger to the stock market, warned portfolio manager Thomas Altmann from QC Partners. “A robust labor market could prompt the Fed to push back the first rate cut a little further.” The Fed will hold its last interest rate meeting of the year on December 13th. A day later it is the ECB’s turn with its key interest rate decision.
“Regardless of what the labor market report turns out to be, the Fed should leave interest rates unchanged at its December meeting,” says Commerzbank expert Hans-Joachim Lübbing. Inflation is falling, but is still well above the target of two percent. “The restrictive interest rate level, which has not yet led to significant economic downturns, can continue to have an impact,” explains Lübbbing.
“As of today, the big question is when the decline from the interest rate plateau will begin and how quickly it will happen,” comments KfW chief economist Fritzi Köhler-Geib. “The Fed members’ new interest rate forecasts will also provide an indication here. I expect the first interest rate cut to begin in the summer of next year.”
In the USA, the Dow Jones closed 0.2 percent higher at 36,117 points yesterday before the US jobs report. The broader S&P 500 gained 0.8 percent to 4,586 points and the Nasdaq technology exchange gained 1.4 percent to almost 14,340 points.
The Japanese stock markets, on the other hand, have come under pressure due to interest rate concerns. The background was statements by central bank chief Kazuo Ueda, who said during an appearance in parliament yesterday that the Bank of Japan (BoJ) faces a difficult year before it can discuss options for exiting its ultra-loose monetary policy. Traders interpreted this as another sign that the central bank could move away from its ultra-loose monetary policy to stimulate the economy in the near future.
The Nikkei index, which includes 225 stocks, closed 1.7 percent lower at 32,307 points. The broader Topix index fell 1.5 percent to 2,324 points. The Shanghai Stock Exchange and the index of the most important companies in Shanghai and Shenzhen more or less stood still.
The aircraft manufacturer Airbus has received an order for six A350 freighters from Cathay Pacific Airways. There is also the option of 20 additional machines, said Cathay. Deliveries are scheduled to begin in 2027 and be completed by the end of 2029. The purchase has a list value of about $2.7 billion before customer discounts, Cathay Pacific said.
This is the airline’s largest cargo aircraft order award in 16 years. The company has one of the largest cargo fleets in the world. With the order, Airbus knocked its US rival Boeing out of the race.
The defense electronics manufacturer Hensoldt has raised 241 million euros in fresh money to finance the takeover of the security technology service provider ESG. Just two days after announcing the purchase worth up to 730 million euros, Hensoldt yesterday placed 10.5 million new shares at a price of 22.94 euros. The allocation price was four percent below the Xetra closing price on Thursday. The remainder of the purchase price for ESG will come from new loans with a volume of 450 million euros.
The chemical company BASF is spinning off two of its divisions into their own companies. Just like the coatings business, the battery materials and agriculture areas should also be able to operate more independently, explained outgoing CEO Martin Brudermüller. The manager rejected a possible sale of the divisions and possible wage dumping. The areas “all remain part of BASF”. According to CFO Dirk Elvermann, around 2,390 jobs in Germany are affected. The global figures have not yet been determined.
The power struggle between the Swedish union IF Metall and the US car manufacturer Tesla is spreading to other countries. Yesterday, the Finnish trade union AKT announced that it would no longer load electric cars from Elon Musk’s group for shipment to Sweden from December 20th. Dockers in Sweden, Norway and Denmark have already taken or announced corresponding steps. This means that Tesla can effectively no longer ship cars to Sweden.