market report
After the strong recovery rally from the previous day, the DAX is unlikely to make any big jumps in the middle of the week. However, the DAX bulls really deserve a breather.
Investors in the German stock market are likely to keep their feet still in the middle of the week. The broker IG estimates the DAX at 15,400 points this morning, 0.2 percent lower. The day before, the leading German index had gained a whopping 2.0 percent to 15,424 points.
The statements from various Fed bankers had fueled speculation that the US central bank could take another interest rate break at its September meeting. This caused bond yields to fall and stock prices to rise. Investors are now looking forward to the publication of the minutes of the Fed’s September meeting this evening. It is hoped that this will provide signals for the central bank’s further monetary policy course.
With yesterday’s price jump, the technical picture in the DAX has now brightened further, as the German stock market barometer has overcome the horizontal resistance zone at 15,230/15,260 points and marked a new one-week high. The path is now clear towards the two-week high at 15,516 points. The rising 200-day line above 15,600 points is tempting.
Positive impulses for DAX trading come from Wall Street. There, US investors stocked up on stocks and concerns about the conflict between Israel and the radical Islamic Palestinian group Hamas faded into the background. The Dow Jones index of standard stocks closed 0.4 percent higher at 33,739 points. The technology-heavy Nasdaq advanced 0.6 percent to 13,562 points. The broad S&P 500 gained 0.5 percent to 4,358 points.
In view of the positive guidance from Wall Street, investors on the Asian markets were again in a buying mood by midweek. Positively received figures from Samsung fueled a chip rally in Japan’s Nikkei. The index, which includes 225 values, was 0.7 percent higher shortly before the close of trading in Tokyo. The Shanghai stock exchange is up 0.2 percent.
The dollar shows little movement in early foreign exchange trading. At the same time, the euro remains at $1.0603. The recovery since the ten-month low at $1.0453 continues.
Gold prices can defend their recent gains. In the morning, the troy ounce of gold was trading at $1,860. Since Hamas’ major attack on Israel, the price of gold has increased by around $30, with the yellow precious metal benefiting from its image as a “safe haven”.
According to insiders, Lufthansa is supposed to bring Germans out of Israel with several special flights on Thursday and Friday at the request of the Foreign Office. The final technical details were being clarified at the moment, it was said in the evening from Foreign Office circles. There are four flights per day on Thursday and Friday.
After the record year of 2022, the growth of the French luxury goods group LVMH has surprisingly weakened significantly in the past few months. Internally – i.e. without exchange rate effects – sales in the third quarter only increased by nine percent. Demand for fashion and leather goods was particularly disappointing, and sales in the spirits business collapsed.
Losses in the memory chip division have once again ruined Samsung’s balance sheet. The South Korean electronics group announced a 78 percent plunge in operating profit to 2.4 trillion won ($1.79 billion) in a preliminary third-quarter earnings release. However, analysts had expected an 80 percent decline to 2.1 trillion won. The share reacted accordingly positively.
US automaker General Motors (GM) and Canadian union Unifor have reached a tentative agreement in collective bargaining, hours after 4,300 workers at three GM plants went on strike. According to the union, the agreement includes wage increases of up to 25 percent.
The health sandal manufacturer Birkenstock surprisingly did not fully exploit the price range for its IPO in New York. The 32.3 million papers would be allocated at $46, just below the middle of the range, which ranged from $44 to $49, the Linz am Rhein company announced in the evening. The traditional company wants to make its debut on Wall Street today. At the issue price, Birkenstock is valued at $8.6 billion.