market report
After a slow start to trading, there are the first buyers on the stock market again. The DAX remains on an intact upward trend despite weak export data, within striking distance of its record high on Friday.
Around midday, the first investors ventured out of cover again, and the DAX rose by 0.1 percent to 16,942 points. This means Friday’s record high of 17,004 points is getting closer again: “The German stock index continues to move in an intact upward trend, which could take it over 17,000 points again this week and to a new record high,” comments Jochen Stanzl, chief market analyst CMC Markets.
Christian Zoller, market expert at ING, argues with seasonality and is also optimistic: “Seasonally, the DAX should receive a tailwind in US election years until mid-February.” From mid-February to mid-March, a correction can be expected before things continue to improve, says Zoller.
Surprisingly strong US labor market data on Friday had raised new doubts about rapid interest rate cuts by the US Federal Reserve. “On the stock market it is currently a trade-off between the positive situation on the labor market and later falling interest rates,” said stock market expert Thomas Altmann from QC Partners.
“The labor market is booming, wages are rising and, thanks to growing consumer demand, are creating potential inflationary pressure,” write the market observers at Index Radar in their daily outlook. “If the situation remains this way, even a rate cut in May will be unlikely.” But that doesn’t necessarily have to be negative for stocks. A strong economy means that companies are currently earning well and that profit forecasts are at least being met, say the experts.
However, the current German foreign trade data for December caused slight disillusionment on the market, because there can be no talk of a booming economy here: exports fell by 4.6 percent month-on-month in December, as the Federal Statistical Office in Wiesbaden announced. This is the largest decline since the end of 2022.
Analysts had expected exports to shrink, but on average they had only expected a decline of 2.8 percent. “Ultimately, the global economy is too weak to provide dynamism,” said Alexander Krüger, chief economist at the private bank Hauck Aufhäuser Lamp.
The expectation that interest rates will remain high for the time being is depressing the price of gold today. The precious metal fell in price by 0.8 percent to around $2,023 per troy ounce. When key interest rates are high, market participants are more likely to invest in safe but interest-bearing investments instead of buying gold, on which there is no interest.
The nationalized energy company Uniper has welcomed the federal government’s agreement on the basic principles of a power plant strategy. “We are very relieved that the federal government has agreed on a common approach to the power plant strategy and at the same time is in favor of introducing a capacity mechanism in Germany from 2028,” said CEO Michael Lewis. Quick action is urgently needed because the approval process and the actual construction of power plants and storage facilities will take several years.
The heir to the Samsung empire, Lee Jay Yong, has been acquitted by a court of charges of stock manipulation and other financial crimes. The district court in Seoul today announced its verdict in the first instance in a trial that, among other things, dealt with the controversial merger of two subsidiaries of the largest South Korean company nine years ago. According to reports from South Korean broadcasters, the verdict said that the 55-year-old Lee could not have been proven to have engaged in any illegal activities.
The indictment against the CEO of memory chip market leader Samsung Electronics focused on the background to the merger of the construction company Samsung C&T with its subsidiary Cheil Industries in 2015. Critics saw the merger as strengthening the Samsung founding family. Lee is the grandson of company founder Lee Byung Chull.
Supported by solid growth and austerity measures, Delivery Hero has achieved its own goals with its business figures for 2023. According to preliminary calculations, the gross merchandise value (GMV) traded on the platform increased by 6.8 percent to 47.6 billion euros. The adjusted operating result is more than 250 million euros. On this basis, the company forecast GMV growth of seven to nine percent and an operating result of 725 to 775 million euros for 2024.
Supported by the continued stabilization of the important German business, Vodafone has again increased its service revenues. The British mobile operator announced that service revenues climbed by 4.7 percent to 9.38 billion euros in the past quarter. The German subsidiary generated an increase of 0.3 percent to 2.89 billion euros. “We made good strategic progress in the first nine months of the year, with improved customer satisfaction and three consecutive quarters of service revenue growth in Europe,” said CEO Margherita Della Valle.
The major Italian bank Unicredit wants to give almost all of the money to its shareholders after a surprisingly high record profit. In the coming years, at least 90 percent of the adjusted surplus will flow to the shareholders, said the parent company of the German Hypovereinsbank. In the past year, Unicredit earned 8.6 billion euros after adjusting for certain tax effects, around one and a half times as much as the year before. Unicredit boss Andrea Orcel has now announced share buybacks worth 5.6 billion euros and dividend payments of 3 billion euros.
The crisis-ridden US aircraft manufacturer Boeing has announced a delay in the delivery of 50 of its 737 MAX passenger aircraft. The company cited further work on the aircraft as the reason for this after the supplier company Spirit Aero Systems discovered incorrectly drilled holes in some aircraft fuselages. Boeing confirmed the supplier’s finding after an inquiry from the Reuters news agency.