market report
The recovery rally on the German stock market following the ECB interest rate decision continues. The DAX recorded strong price gains on the big expiration day, which brought it close to the 16,000 point mark.
The buying mood on the German stock market continues the day after the interest rate decision by the European Central Bank (ECB). Investors are speculating that the ECB’s interest rate hike cycle has now come to an end after ten interest rate hikes in a row.
“We will see next week at the latest how long and far this hope will carry him or whether it is just a flash in the pan,” notes Jochen Stanzl, analyst at CMC Markets, skeptically. During the morning, the DAX rose to a peak of 15,989 points, which corresponds to an increase of 1.2 percent.
Since yesterday, the technical chart picture in the DAX has brightened significantly. After recapturing the important zone at 15,700 points the day before, the DAX is now leaving behind its previous weekly high of 15,868 points. This means that the German stock market barometer has reached a small bottom.
The connection potential amounts to 300 points, as Jörg Scherer, technical analyst at HSBC, highlights in a current analysis. Now the August highs of 16,043/16,060 points are once again becoming the focus of technically oriented investors.
Things are also likely to continue to improve on Wall Street at the end of the week, as the future markets indicate. The future on the US leading index Dow Jones is currently trading 0.2 percent higher. Yesterday, following the ECB’s decision, investors’ hopes for an interest rate peak by the US Federal Reserve (Fed) had already increased on Wall Street.
However, a look at the calendar warns you to be careful: today is the triple expiry day. On the so-called Witches’ Sabbath, options and futures on indices and individual stocks expire on the Eurex futures exchange. For private investors it is often best to keep their feet still on such days, as the witches’ sabbath is regularly accompanied by major price fluctuations, especially for individual stocks.
Behind these fluctuations are usually larger institutional investors, i.e. funds or asset managers, whose deadline for implementing their derivative transactions is expiring. They therefore try in advance to drive the prices up to the prices at which they are active on the futures exchange. Accordingly, high trading volumes and significant price fluctuations can occur within minutes.
The euro posted slight gains at lunchtime; the common currency is currently trading at $1.0664. The day before, the euro fell to a three-month low of $1.0632 following the ECB’s decision. A troy ounce of gold currently costs $1,918, 0.4 percent more.
Meanwhile, price increases on the oil market continue. In the morning, prices were at their highest level since last November. At its peak, a barrel (159 liters) of North Sea Brent for delivery in November cost significantly more than $94. A barrel of American West Texas Intermediate (WTI) rose to just over $91. The tight supply from major producing countries such as Saudi Arabia and Russia continues to drive up prices.
Mercedes-Benz may be facing a recall due to defeat devices in diesel vehicles. A Mercedes spokesman said the company assumes that software updates for the cars have already been developed and are available in the field. The Federal Motor Transport Authority (KBA) served the company with a hearing in July. “We are cooperating fully with the KBA,” he emphasized.
The price war in China continues to cause problems for Volkswagen in its most important market. Last month, Europe’s largest car manufacturer in the People’s Republic sold 278,000 vehicles, 6.5 percent less than a year ago. The Wolfsburg-based company explained the decline with the high price discounts from Chinese manufacturers who are fighting for market share in their home market.
The BMW subsidiary and luxury brand Rolls Royce is to be converted completely to electric drive by 2030. “The last twelve-cylinder” should roll off the assembly line “at the end of this decade,” said Rolls-Royce CEO Torsten Müller-Ötvös yesterday evening in Munich at the presentation of Rolls-Royce’s first electric car, the “Spectre.” “Then we will be fully electric.”
Lufthansa is participating in a consortium with Rheinmetall to manufacture and maintain parts of the Lockheed F-35 fighter jet. Lufthansa boss Carsten Spohr said this at a reception last night in Frankfurt. This is a strategic step by Lufthansa, as the need for technical support to improve the preparedness of armies worldwide in the face of military conflicts must be improved.
After an upgrade, the Morphosys share is one of the biggest winners in the SDAX with a premium of more than eight percent at lunchtime. Analysts at Goldman Sachs have set the antibody specialist’s stocks to “Neutral” from “Sell”. Analyst Rajan Sharma has become even more optimistic about the market potential of the cancer drug Pelabresib, which is currently in clinical research.
The Indian branch of SAP wants to double its share of the German software giant’s patents from the current 25 to 50 percent and create 3,000 new jobs per year in the future. “AI can help India consolidate its dominance in the IT space,” said Sindhu Gangadharan, managing director, Bangalore-based software development center, SAP Labs India.
The energy technology group Siemens Energy has agreed a hydrogen deal with the French gas specialist Air Liquide. Siemens Energy is delivering twelve electrolyzers with a total capacity of 200 megawatts to France. Air Liquide will use them in its Normand’Hy project in Normandy, where it aims to produce 28,000 tons of sustainable hydrogen annually for industry and the mobility sector from 2026.
Following the threat of a recall for its iPhone 12 in France, Apple will adapt the device’s software in the country. At the same time, the group emphasized that the exceeding of limit values for electromagnetic radiation determined by a supervisory authority was due to its “special test protocol”. The update should take the testing method into account and was not triggered by security concerns. It is internationally recognized that the iPhone 12 meets all limit values.
The withdrawal from Russia and losses in sales in Ukraine have dampened growth at fashion retailer H&M. In the third quarter (until the end of August), sales rose by six percent to almost 61 billion Swedish crowns. Excluding the business in Russia, Belarus and Ukraine, sales would have increased by eight percent.
China has placed US defense companies Lockheed Martin and Northrop Grumman on the sanctions list for selling weapons to Taiwan. Despite China’s opposition, the United States government remains committed to supplying arms to Taiwan, Chinese Foreign Ministry spokeswoman Mao Ning said in Beijing today. This violated the One China principle.
In a first-of-its-kind step, the influential UAW union is simultaneously going on strike at plants belonging to the three major US car manufacturers General Motors, Ford and Stellantis. The work stoppages began on Friday night after the deadline for collective bargaining expired. A prolonged nationwide strike in the auto industry could have a significant impact on the US economy.
The Photoshop provider Adobe is forecasting a profit for the current quarter that is above analysts’ estimates. The reason for the optimistic outlook is new AI functions, the company announced yesterday after the stock market closed. Adobe expects fourth-quarter adjusted earnings to be between $4.10 and $4.15 per share.
Entertainment giant Walt Disney has rejected reports of a possible sale of ABC Group and its TV channels to Nexstar. “Any report in this regard is unfounded,” the company said. However, Disney was open to considering a variety of strategic options for the linear business areas.
UBS boss Sergio Ermotti wants to remain at the top of the group until at least the end of 2026 in order to integrate former rival Credit Suisse. “I have to finish the job,” Ermotti told the Economic Club of New York yesterday. “My goal is to finish the work and of course that means staying until the end of 2026.”