market report
The leading German index is likely to start the new stock market week with losses. On Friday, DAX buyers ran out of steam just below the record high. Now they have to gather their strength again.
Rather mixed specifications from overseas stock exchanges are likely to prevent a direct attack on the record high in the DAX at the start of the new stock market week. The broker IG currently estimates German standard values 0.3 percent lower at 16,905 points.
Before the weekend, the DAX had reached its record high of 17,003 points and at the daily high of 16,968 points had at least just left the high from the beginning of January (16,963) behind. From a chart perspective, the path towards a record high is clear, so a new attack by the DAX bulls seems only a matter of time.
The latest tailwind for prices came from the European Central Bank Council meeting. Last week, ECB boss Christine Lagarde left the door open for interest rate cuts in April. With the start of the new stock market week, investors’ eyes are now turning to the US Federal Reserve. The Fed’s interest rate decision is on the agenda on Wednesday evening.
Fresh impulses will also come from the reporting season over the course of the week, when technology heavyweights such as Microsoft, Alphabet, Apple and Meta open their books in the USA. Deutsche Bank and Siemens Healthineers are due in this country on Friday.
Overall, the US stock exchanges have rather negative guidelines for DAX trading. In New York, a sell-off in chip stocks at the end of the week after a weak forecast from Intel weighed on prices. The technology-heavy Nasdaq fell 0.4 percent to 15,455 points. The broad S&P 500 lost 0.1 percent to 4,890 points. The Dow Jones index of standard stocks, however, closed 0.2 percent higher at 38,109 points.
Mixed signals are coming from the Asian stock markets. In Japan, a weaker yen causes prices to rise. The Nikkei index, which includes 225 stocks, was 0.8 percent higher at 36,027 points at the close of trading in Tokyo.
In contrast, the focus on the Chinese stock exchanges is on the Evergrande Group: At the beginning of the week, a judge ordered the dissolution of the heavily indebted real estate group. This could cause new turbulence in the ailing Chinese markets, which the government recently tried to stabilize again. Papers from subsidiaries of the Evergrande Group were suspended from trading today. The Shanghai stock exchange is currently trading 0.7 percent lower.
Bayer shares will be in focus in the DAX this morning. With an amount of 2.2 billion dollars, US juries have sentenced the agricultural chemical and pharmaceutical company to pay the highest damages to date in trials involving weed killers containing glyphosate. Bayer wants to appeal. A spokesman criticized on Saturday that the verdict contradicts the scientific findings and assessments of the authorities.
Porsche AG’s entry into the Bundesliga soccer club VfB Stuttgart is perfect. In a first step, the Volkswagen subsidiary acquired 5.49 percent of the shares in VfB Stuttgart 1893 AG, the Swabians announced on Friday. The second tranche of 5.20 percent is planned for June 2024. Official information on the amount was not provided; according to reports, VfB will earn a total of around 40 million euros from the share sale.
According to the figures, Wacker Chemie is under pressure in the MDAX. Sales fell by 22 percent to 6.4 billion euros last year, even missing the already reduced expectations. The bottom line is that Wacker is expected to make a profit of 330 million euros after 1.3 billion euros in the previous year. The company is particularly suffering from the crisis in construction and in the German solar industry.
The automotive and industrial supplier Stabilus started the new financial year (until the end of September) with slightly more sales. While the company was able to grow in Europe and Asia, revenues in the Americas region fell due to strikes in the US automotive industry. Overall, the company suffered losses in profitability. The bottom line is that profits fell by 3.3 million euros to 12.2 million euros.
The filling and packaging system manufacturer Krones would like to expand its offering with the acquisition of the Swiss mechanical engineering company Netstal. According to its own statement, the MDAX company is about to take over 100 percent of Netstal’s shares. With 500 employees, Netstal Maschinen AG produces systems for the production of PET containers and bottle caps. Financial details were not disclosed.
Significantly increased fuel costs and the problems at aircraft manufacturer Boeing are clouding the business prospects of Europe’s largest low-cost airline Ryanair. For the current financial year until the end of March, CEO Michael O’Leary expects a profit of 1.85 to 1.95 billion euros. Previously he had expected up to 2.05 billion euros.
Three weeks after a near-miss with a Boeing 737-9 Max, aircraft of the type are again carrying passengers in the USA. Alaska Airlines – the airline whose 737-9 Max lost a fuselage part in flight – became the first to use an inspected aircraft between Seattle and San Diego on Friday (local time). However, Alaska was willing to rebook customers who did not want to board a plane of this type on other aircraft.
Spotify boss Daniel Ek has sharply criticized Apple’s plans to reorganize the app business because of new EU rules. The project is a “total farce” and must be rejected by the EU Commission, it said in a blog entry by the music streaming market leader from Sweden on Friday. Spotify specifically attacked a new annual app fee of 50 euro cents: “This is blackmail.”