Market report: DAX robust ahead of US inflation data


market report

As of: October 10, 2024 7:40 a.m

Before the start of trading, it looks as if the DAX could defend its previous day’s gains. The topic of the day is likely to be the US inflation data, which is due in the early afternoon.

The broker IG estimates the German leading index 0.1 percent higher to 19,280 points before the start of XETRA. Strong specifications from the USA are likely to support prices here too. Yesterday the DAX ended trading with an increase of 1.0 percent to 19,254 points.

Today’s main topic is likely to be US inflation data, due out at 2:30 p.m. Investors are hoping for further information about the future monetary policy of the US Federal Reserve. According to experts at Commerzbank, the market consensus for overall inflation is 2.3 percent year-on-year, which would be slightly lower than the 2.5 percent from August. Commerzbank expects core inflation to remain unchanged at 3.2 percent compared to the August level.

The Fed minutes published yesterday show that the US monetary authorities have not committed themselves to a faster pace of easing monetary policy with their XL interest rate turnaround. A clear majority of participants supported the decision to start the interest rate cutting cycle with a relatively large downward step. But there was even greater agreement that this does not involve a commitment to a specific pace of interest rate reductions.

In addition to US inflation data, investors are now also turning their attention to the upcoming US reporting season. “After the companies from the S&P 500 increased their profits by 13.2 percent year-on-year in the second quarter, analysts are expecting an increase of 5.0 percent for the reporting season that has begun,” writes Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.

The highest profit increases of 15.1 and 12.3 percent are expected from the growth sectors IT and communication services. Energy companies, on the other hand, are likely to experience the largest decline in profits at minus 21.7 percent, says Stephan.

The US stock exchanges closed with price premiums after the publication of the Fed minutes. The Dow Jones standard shares closed yesterday 1.0 percent higher at 42,512 points. The technology-heavy Nasdaq advanced 0.6 percent to 18,291 points. The broad S&P 500 gained 0.7 percent to 5,792, setting a closing record. The stock market barometers had previously been slightly in the red.

After the notes, the focus in the USA is also on the US inflation report for September. “And then comes the start of the earnings season starting Friday, which is likely to bring a certain level of volatility to the markets,” said Tim Ghriskey, chief strategist at investment advisor Ingalls & Snyder.

Buoyed by a rally on Chinese stock markets, Asian markets are rising today. The Shanghai stock exchange gained 1.0 percent to 3,292 points after the Chinese central bank PBOC launched a 500 billion yuan program to stimulate the capital markets. Investors were relieved by the concrete steps to implement the announced economic stimulus measures. The index of major companies in Shanghai and Shenzhen rose 1.0 percent to 3,993 points, after slumping seven percent the previous day.

In Japan, however, the mood remained subdued and profit-taking slowed the upswing. The Nikkei index, which includes 225 stocks, rose by 0.3 percent to 39,395 points. The broader Topix was trading 0.2 percent higher at 2,713 points.

The world’s largest aircraft manufacturer Airbus delivered hardly more commercial aircraft in September than in the previous month. This time 50 machines found their way to customers. In August the manufacturer only delivered 47 units – after 77 units in July. In the first nine months, the manufacturer managed 497 jets, putting it over 200 ahead of its struggling competitor Boeing from the USA. The annual target is 770 jets.

Deutsche Telekom wants to pay out a higher dividend to its shareholders for the current year than expected. The payout is expected to rise from 77 cents the year before to 90 cents per share. The dividend proposal still has to be confirmed at the general meeting. Telekom also announced buybacks of its own shares of up to two billion euros for 2025. The board wants to present its goals for the coming years on Thursday and Friday.

The video conferencing specialist Zoom will let users communicate with their colleagues via digitally created avatars. The deceptively real-looking figures will initially only be used in the Zoom Clips function, in which you can record short video notes.

With the new avatars, you no longer have to record these videos yourself. Instead, it should be enough to write a text and the software would then animate the digital copy with appropriate mouth movements and the simulated voice. The feature is expected to be introduced next year.

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