market report
After a botched start to the year, the German stock market remains counted. Especially since an unchanged restrictive stance by the US Federal Reserve could further prevent prices from recovering.
The DAX started trading today with a slight increase. The leading German index advanced by 0.2 percent to 16,570 points after losing 1.38 percent to 16,538 points yesterday. Although the leading German index posted its biggest daily loss since October yesterday, it at least recovered slightly in the morning.
Is inflation rising again?
In Germany, inflationary pressure appears to be increasing again, as data from the most populous state of North Rhine-Westphalia (NRW) suggests. Inflation in North Rhine-Westphalia increased again for the first time since September and rose to 3.5 percent in December, as the State Statistical Office announced today in Düsseldorf. In November the inflation rate was 3.0 percent.
The Federal Statistical Office will announce an initial estimate for December inflation across Germany at 2 p.m. The authority also provides a value for the average inflation rate for 2023.
Meanwhile, inflation in France increased again at the end of last year. Consumer prices (HICP) recorded for European comparison purposes rose by 4.1 percent compared to the same month last year, as the Insee statistics office announced this morning after an initial estimate. Analysts had expected this.
No tailwind from New York
Investors withdrew from Wall Street yesterday. The major stock indices all closed in the red: the technology-heavy Nasdaq ultimately fell 1.18 percent. The market-wide S&P 500 index lost 0.8 percent to 4,704 places, the Dow Jones, the leading index of standard stocks, ended trading 0.76 percent lower.
Fed sticks with restrictive monetary policy
The minutes of the last interest rate meeting of the US Federal Reserve in December, known in technical jargon as “Minutes”, were eagerly awaited yesterday evening. However, this did not bring about the hoped-for upswing. On the one hand, the Fed held out the prospect of an end to the interest rate increases: “The participants were of the opinion that the key interest rate has reached its peak in this tightening cycle or is close to it.” “Clear progress” has been made in combating inflation.
On the other hand, the US central bankers also made it clear that the restrictive stance should initially be maintained until inflation clearly and sustainably declines, as the statement shows. The timing of a rate cut remains uncertain. A first interest rate cut of a quarter of a percentage point is expected on the futures markets for March.
Asian stock markets under pressure
The Japanese stock exchanges failed to find a common direction on their first trading day of the new year. The Nikkei index lost 0.5 percent to 33,288 points, while the broader Topix advanced by 0.5 percent. The Fed’s minutes in particular were the focus today: “Market participants are disappointed by the signals from the US Federal Reserve,” said market expert Andreas Lipkow.
Despite positive economic data, there was no buying mood on the Chinese stock exchanges either. The Shanghai index lost 0.4 percent, the index of the most important companies in Shanghai and Shenzhen fell 0.9 percent. The private Caixin/S&P Global Purchasing Managers’ Index (PMI) for the services sector rose to 52.9 points in December from 51.5 points in November, indicating growth. However, the data contradicts an official survey released on Sunday. It showed that the sub-index for services activity fell again at the end of the year, raising calls for further stimulus measures in the new year.
Euro exchange rate stabilizes
The euro initially stabilized on the morning after the price losses of the first two trading days of the year. In the morning, the common currency was trading at 1.0927 US dollars, around the same level as the previous evening. The European Central Bank (ECB) last set the reference rate at $1.0919 on Wednesday afternoon.
Supply fears drive oil prices
Oil prices continue to rise in the morning. The North Sea Brent variety rose in price by 0.7 percent to $78.83 per barrel, while the US light oil WTI temporarily cost one percent more at $73.41 per barrel.
Reports of protests in Libya’s most important oil field had already driven up crude oil prices by more than three percent yesterday. The situation in the Red Sea is also causing unrest, where there have been attacks by Houthi rebels on cargo ships for weeks.
Grenke’s new business is not picking up as much as hoped
The leasing specialist Grenke did slightly less new business last year than previously forecast. New leasing business rose by 12.3 percent to 2.58 billion euros, as the company announced. Most recently, CEO Sebastian Hirsch had expected the lower half of the forecast corridor of 2.6 to 2.8 billion euros. According to the announcement, Hirsch still spoke of a successful year.
JD Sports cashes in on profit target
The British sports fashion retailer JD Sports has felt the effects of the slump in consumption and has therefore reduced its profit target. The company, which sells products from Nike and Adidas, among others, expects an adjusted pre-tax profit of between 915 and 935 million pounds (1.06 to 1.08 billion euros) for the financial year ending in February instead of 1.04 billion pounds. An increase of eight percent in sales is targeted, as JD Sports announced.
Evotec boss Lanthaler resigns early
The pharmaceutical drug researcher Evotec has to look for a new boss. After almost 15 years, CEO Werner Lanthaler is stepping down for personal reasons before his contract expires, the MDAX-listed company surprisingly announced on Wednesday evening. Supervisory board member Mario Polywka will temporarily manage the company.
BMW and Audi are increasing their US sales
The car manufacturer BMW increased its sales in the USA in the fourth quarter. The company announced yesterday in Woodcliff Lake that 107,881 BMW brand vehicles were sold. That was 6.0 percent more than in the same period last year. In 2023, 362,244 cars were sold, 9.0 percent more than in the previous year.
The Volkswagen subsidiary Audi also increased sales in the USA in the fourth quarter. The company announced yesterday in Herndon that 60,670 vehicles were delivered, 12 percent more than in the same period last year. In 2023 as a whole, 228,550 cars were sold, 22 percent more than in the previous year.