market report
There is currently no clear direction for the new quarter on the German stock market. The DAX is unlikely to make any big jumps at the opening of trading. What remains is the fear of a major correction.
Cautious guidelines from the US stock exchanges are also dampening the buying mood on the German stock market. The broker IG currently values the 40 German standard stocks 0.1 percent higher at 13,381 points. The search for direction continues: After a record rally in the first quarter, the DAX initially ran out of steam at the beginning of the shortened trading week in the new quarter, before the first buyers ventured out again yesterday.
Most market participants are probably well aware by now that the DAX is overbought and has now moved significantly upwards from its 200-day average. But so far this has not been enough to trigger major profit-taking or even a correction on the German stock market. “The price engine of the German leading index is running hot,” emphasizes IG analyst Christian Henke. “However, market participants don’t seem to care about this.”
There are no strong impulses coming from the US stock exchanges, as they were at a standstill in the middle of the week. The Dow Jones index of standard stocks closed 0.1 percent lower at 39,127 points. The broader S&P 500 advanced 0.1 percent to 5,211 points and the Nasdaq technology exchange index gained 0.2 percent to 16,277 points.
Mixed economic data kept bulls and bears in check. In addition, Fed Chairman Jerome Powell confirmed at an event at Stanford University that the US central bank is aiming to cut interest rates this year, but that the interest rate turnaround will depend on the incoming data. The financial markets have so far speculated on June as the date for the first interest rate cut by the US Federal Reserve.
In Tokyo, the Nikkei can benefit from the falling yen in the morning. In late trading, the 225-value Japanese leading index was 1.6 percent higher above the 40,000 point mark. Beyond Japan, holidays in China and Taiwan are creating thin trading conditions. The Shanghai Stock Exchange remains closed. The index of major companies in Shanghai and Shenzhen is also not traded.
On the other hand, there is a lot of movement this morning, especially in raw materials: copper reached a 13-month high and gold even set another record. A troy ounce of gold peaked at $2,305 this morning. The prospect of falling interest rates makes the yellow precious metal more attractive again, as it does not generate any interest itself.
The hope of falling interest rates and an improving economy is also supporting oil prices. The price for a barrel (159 liters) of North Sea Brent rose to $89.72 this morning. Oil is therefore more expensive than it has been since October.
The euro gained slightly against the dollar in Asian currency trading and is now trading at $1.0843. The European common currency can thus defend the mark of 1.08 dollars, which it regained yesterday.
Allianz is drawing attention among the DAX stocks. After the bridge collapse in Baltimore, Allianz Insurance warns of the risks of ever larger container ships. The number of serious shipping accidents has decreased overall in recent decades, but incidents involving large container ships and car transporters cause exceptionally high levels of damage.
As announced, engine manufacturer Deutz has sold its electric motor boat subsidiary Torqeedo to the Japanese company Yamaha. The company estimated the sales proceeds to be in the high double-digit million range. In the 2024 annual financial statements, this will lead to a book profit of a small double-digit million amount.
After the agreement for ground staff, collective bargaining for cabin crew at Lufthansa is entering the next round. According to the union, negotiations will take place today in a secret location only for the employees of the parent company Lufthansa. Discussions for the Cityline are scheduled to continue separately in the middle of the month.
Disney boss Bob Iger has strengthened his position at the entertainment giant by winning against a multi-billion dollar hedge fund. At the annual general meeting, Disney shareholders rejected financial investor Nelson Peltz’s attempt to have more influence on Disney’s strategy. Neither Peltz nor any other candidate he nominated were elected to the company’s board of directors.
Apple is apparently considering entering the home robotics business. Among other things, Apple engineers have been working on a robot that can follow people around the house, the Bloomberg news agency reported, citing people familiar with the matter. A table device with a movable display has also been developed.