market report
There will be no trading on Wall Street today because of Thanksgiving. Market observers are therefore expecting a relaxed trading day. The DAX is likely to be on the spot at the start.
Banks and brokers expect the DAX to stand still at the start of trading. Yesterday, the leading German index rose to its highest level in almost three months. It closed with an increase of 0.4 percent to 15,958 points.
The 16,000 point mark is still an important issue for investors. “If the German leading index cannot break the sound barrier in a timely manner, profit-taking will likely increase despite the intact upward trend,” expects market analyst Konstantin Oldenburger from CMC Markets. According to the market expert, the search for supporting factors to continue the rally is currently difficult.
Investors will have to do without stimulus from the USA today. Due to the Thanksgiving holiday in the USA, trading around the world is expected to be quiet and low in sales today.
There is important new data from the economic side today: Shortly after the start of trading, the purchasing managers’ indices from the manufacturing sector in Germany and the Eurozone will be published in November. They are considered an early indicator of company demand.
“The German economy has repeatedly caused disappointment recently,” write the economists at Helaba. However, there are increasing indications from the sentiment indicators that things could go a little better from now on, although the current budget crisis is causing uncertainty again, according to their assessment.
Before Thanksgiving, the US stock markets rose again yesterday. The leading index Dow Jones Industrial gained 0.5 percent to 35,273 points. The market-wide S&P 500 rose by 0.4 percent to 4,557 points. The Nasdaq 100, which is dominated by technology stocks, climbed 0.4 percent to 16,001 points.
Yesterday the last full trading day of this week took place on the US stock exchanges. The US stock exchanges will be closed today for the Thanksgiving holiday. Tomorrow, shortened trading will end at 7:00 p.m. Central European Time.
Chinese markets are holding their gains today. Investors there are increasingly optimistic that interest rates will fall worldwide in the coming year. They are also waiting for indications from Chinese politicians as to whether the long-struggling real estate market will be supported in line with general growth targets. Chinese government advisers will recommend setting next year’s growth targets at 4.5 to 5.5 percent at the annual meeting of policymakers, Reuters news agency reported.
The Shanghai stock exchange gained 0.2 percent. The index of major companies in Shanghai and Shenzhen stalled. The Japanese markets will remain closed today due to a public holiday.
The cap for the DAX index family will be raised to 15 percent out of ten percent, as Deutsche Börse announced. This aligns the indices with international standards. The cap limit defines how high the maximum weight of an individual company in the index can be. If the weight rises above this value, the weight is adjusted accordingly every three months to check the index.
The cap limit of ten percent has led to a total of 38 caps at four companies in the DAX over the past ten years. During the same period, however, no company reached 15 percent.
Vodafone will introduce a new technology for 5G mobile phone coverage in rural areas in Germany that will use up to 40 percent less electricity. The telecommunications provider said that the transmitters and receivers for different area frequencies (900, 800 and 700 megahertz) are bundled into one system in the control center at the foot of a mobile phone station. The technical partner is the Swedish supplier Ericsson.