market report
Even if the DAX recorded slight price gains at the start of trading: Clear buying impulses were needed to jump above the 16,000 point mark. Experts are becoming increasingly skeptical.
The DAX started the new stock exchange week with a small premium. Shortly after the start of trading on XETRA, the German standard values rose by 0.3 percent to 15,962 points. The consolidation on the German stock market is thus continuing for the time being. For weeks now, the German stock exchange barometer has been struggling at the 16,000 point mark.
“For the past month, the share barometer has been moving within extremely narrow limits between 15,662 points on the lower and 16,012 points on the upper side,” emphasizes Jörg Scherer, Head of Technical Analysis at HSBC, with a view to the DAX. The range in the USA is similarly narrow, where the S&P 500 has fluctuated between 4,048 and 4,187 points since the end of March.
According to market strategists at JPMorgan, the risk-reward ratio in the stock market threatens to deteriorate further. The US bank’s strategy team warns of price weakness after the recovery rally since the fourth quarter of 2022 with a view to the second half of the year.
The experts at Landesbank Helaba are also skeptical, warning of growing “risks on the downside” in their current daily outlook. According to Robert Halver, capital market analyst at Baader Bank, the shares are currently lacking the kick of fresh impetus.
In addition to further company figures and economic data, the possible default by the US government should be the focus of investors in the new week. In the face of a race against time, the US government again warned of a default at the weekend. “A default could lead to a massive recession that would cost us millions of jobs,” Deputy Treasury Secretary Wally Adeyemo told CNN on Sunday.
The dispute over the US debt ceiling had already given Wall Street a meager end to the week on Friday. Subdued consumer sentiment and weak technology stocks also weighed on the US indices. The Dow Jones index of standard values remained almost unchanged at 33,301 points. The Nasdaq technology exchange index lost 0.3 percent to 12,285 points. The broader S&P 500 fell 0.2 percent to 4124 points.
The Shanghai stock exchange and the index of the most important companies in Shanghai and Shenzhen gained around one percent in the morning. In Hong Kong, the index rose almost two percent. In Tokyo, the leading Japanese index Nikkei rose by 0.8 percent to 29,626 points, climbing to its highest level since November 2021.
In early forex trading, the euro can only make up little ground after its recent losses against the dollar. The European common currency is currently trading at 1.0864 dollars. A troy ounce of gold currently costs just under 2017 dollars.
The Turkish lira initially showed no major price movements after the presidential election in the morning. In early trading, one US dollar was trading at 19.62 lira, almost the same rate as Friday night. According to the electoral authority, the Turkish head of state Recep Tayyip Erdogan is ahead in the race for the presidency, but will probably have to face a runoff election.
Oil prices have picked up where they fell last week. In the morning, a barrel (159 liters) of North Sea Brent for delivery in July cost 73.68 US dollars. That was 49 cents less than on Friday. The price of a barrel of the American grade West Texas Intermediate (WTI) for June delivery fell by 42 cents to $69.62.
This means that oil prices are still under selling pressure. Above all, concerns about demand because of China’s surprisingly sluggish economic recovery, but also fears of the US economy slipping into recession are pushing prices down.
The energy technology group Siemens Energy has lowered its forecast due to high burdens from the Spanish subsidiary Gamesa: Siemens Energy’s after-tax loss will exceed the previous year’s level of 712 million euros by up to a low three-digit million amount. So far, the group had expected a value at the level of the previous year.
In the MDAX, the Encavis share is in demand after a surprisingly strong first quarter. The solar and wind farm operator benefited from its expanded generation capacity and recent acquisition. After deducting the electricity price brakes, sales increased by nine percent year-on-year to EUR 98.8 million, with the bottom line being almost 17 percent more profit at EUR 16.6 million.
The insurance group Talanx (HDI) significantly increased its profit in the first quarter thanks to fewer major claims. At 423 million euros, the surplus was almost a third higher than a year earlier. CEO Torsten Leue sees the group on course to achieve a profit of around 1.4 billion euros this year as planned.
German media regulators are examining whether the Italian TV group Media For Europe (MFE) led by Silvio Berlusconi is gaining too much power in the media sector by increasing its stake in ProSiebenSat.1. This was confirmed by the Bavarian State Center for New Media (BLM) on Friday. The television company ProSiebenSat.1 had previously published that MFE had increased its stake in the Unterföhringer from 22.72 percent of the share capital to 25.73 percent.
The German armaments manufacturer Rheinmetall is founding a joint venture with the Ukrainian state-owned company Ukroboronprom. The joint venture is scheduled to start work in mid-July. In a first step, military vehicles that were made available to Ukraine through ring exchange projects by the German government and through direct deliveries are to be repaired. The joint manufacture of selected Rheinmetall products in the Ukraine is planned later.
The IT service provider Nagarro expects lower sales growth in the current year than previously. The group revenue should only increase to 940 million euros, the SDAX company announced on Friday evening after the stock exchange closed. Nagarro had previously planned to break the billion mark this year after sales of 856 million euros in 2022.
The battery manufacturer Varta is operating in the red. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) were minus 2.0 (previous year: plus 38.1) million euros in the first quarter. Varta has hardly made any sales with the lithium-ion button cells for headphones since the main customer Apple throttled the production of the “AirPods”.
Beyond the major indices, the Evotec share draws attention to itself. Despite a cyber attack, the active pharmaceutical ingredient researcher is initially sticking to its annual goals. However, the effects of the attack on the forecasts cannot be ruled out, the Hamburger said on Saturday night.
The spirits manufacturer Pernod Ricard no longer wants to sell its alcohol in Russia. At the end of April, the export of all international brands was stopped, and they also want to end the sale of their own products in Russia, it said. According to the French media, there had previously been excitement in Sweden about the export of Absolut to Russia and pressure on the group.
The electric car manufacturer Tesla has to fix a possible security risk in just over 1.1 million vehicles in China with a software update. The state agency for market regulation spoke of a product recall that will begin on May 29th. A total of three imported and two China-made Tesla models that were produced from January 2019 to April 2023 are affected.