Market report: DAX investors relaxed below the record high

market report

Status: 05/22/2023 07:35 a.m

The dispute over the debt ceiling in the United States is coming to a head. But the markets no longer seem to be taking the resulting dangers too seriously. The record high in the DAX remains within reach.

The sluggish negotiations about raising the US debt ceiling caused only a small mood dampener on the German stock market at the beginning of the week. The DAX is able to stay close to its new record high of 16,332 points, which was only reached on Friday. The broker IG assesses the German standard values ​​at 16,298 points and thus 0.1 percent above their Xetra closing price on Friday evening.

The DAX has jumped to a record high – but what are the reasons for this brilliant price rally?

At the end of the week, the German stock exchange barometer had set a new record at 16,332 points. By marking an all-time high, the DAX sent one of the best buy signals that technical analysis has to offer. The positive chart technique continues to give the DAX a tailwind at the beginning of the week.

The fundamental trigger for the price rally was the prospect of an early agreement in the US debt dispute. But the hopes of investors have not been fulfilled so far. Today, US President Joe Biden and the chief negotiator for the opposition Republicans, Kevin McCarthy, want to meet again for a top-level discussion.

Time is of the essence: At the beginning of June, the US government is threatened with a default if Biden’s team does not reach an agreement with the Republicans in Congress to raise the debt ceiling by then – with devastating consequences for the global economy and financial markets.

The US government’s ongoing debt dispute also weighed on the US stock exchanges at the end of the week: the three US indices fell after the media reported a break in negotiations. The Dow Jones index of standard values ​​closed 0.3 percent lower on Friday at 33,426 points. The tech-heavy Nasdaq fell 0.2 percent to 12,657 points. The broad S&P 500 lost 0.1 percent to 4191 points.

The negative specifications from Wall Street prevent major upward swings on the Asian stock exchanges in the morning. The Nikkei Index, which comprises 225 stocks, was up 0.4 percent shortly before the Tokyo market closed. The Shanghai stock exchange was up 0.3 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.4 percent.

Dollar shows weakness across the board in Asian FX trading. At the same time, the euro can establish itself above the $1.08 mark. The European common currency is currently trading at 1.0822 dollars. On Friday, the euro temporarily fell as low as $1.076. A troy ounce of gold is currently trading at just under 1977 dollars.

In the DAX, the focus is on the Adidas share in the morning. The Nike competitor is launching some of the “Yeezy” shoes from the ended collaboration with rapper Kanye West later this month. “Some Yeezy products” would be available via the Adidas app and online at the end of May, the world’s second largest sporting goods company announced on Friday evening. Adidas will “donate a significant amount” from the proceeds.

Siemens Energy is selling the 32 percent stake held by its subsidiary Siemens Gamesa in the wind turbine manufacturer Windar Renovables to the British Bridgepoint. An agreement on this had been signed, said a spokesman for Siemens Energy on Sunday evening. A selling price was not mentioned.

A Chinese supervisory authority warns against the use of components from the US memory chip manufacturer Micron Technology because of alleged security risks. The products posed massive security risks for the supply chain of the People’s Republic’s critical information infrastructure, the Cyber ​​Security Authority (CAC) announced on Sunday. A massive dispute over chip technology has broken out between the governments in Washington and Beijing.

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