market report
The DAX is about to have a positive start to the new week. The bulls are unlikely to give up the round mark of 18,000 points without a fight, but the door to the record high is still a good deal higher.
Pre-market indications suggest that the DAX is likely to start the new trading week at a premium. The broker IG estimates the German leading index to be up 0.2 percent at 18,041 points. The reporting season on the German stock market is still in full swing this week, but traditionally only a few companies are on the agenda at the beginning of the week.
Helaba economist Claudia Windt is not particularly optimistic about the coming days: “In the reporting week, investors are likely to remain cautious, especially since there is no important inflation news.”
According to the chart technicians at the British bank HSBC, the DAX is “currently heading towards a short-term decision-making situation, so the investment motto is currently ‘Make or Break’.” The downward scope is limited to 17,800 points. However, a spurt above the recent interim highs of 18,226 and 18,236 points would make the recent sluggish price development forgotten.
Tailwind for the DAX comes from Wall Street, where investors bought stocks on Friday. Surprisingly weak US labor market data had revived hopes of falling interest rates on the stock markets.
The Dow Jones index of standard stocks closed 1.2 percent higher at 38,675 points. The technology-heavy Nasdaq advanced by 2.0 percent to 16,156 points – also boosted by strong Apple figures. The broad S&P 500 gained 1.3 percent to 5,127 positions.
The guidance from the Asian stock exchanges is also positive: After the holidays last week, the markets on the Chinese mainland started the new week with momentum. The recovery was driven by the country’s Politburo meeting, where policymakers announced greater support for the economy through prudent monetary policy and proactive fiscal policy. The leading index of the Shanghai stock exchange is currently 1.1 percent higher. In Japan, the stock exchanges are closed for a public holiday.
In Asian foreign exchange trading, the euro rose slightly to $1.0765. Apart from EU producer prices, there are no potentially price-moving economic data on the agenda today. The second publication of the purchasing managers’ indices offers little potential for surprises.
The price of gold rises significantly in the morning. The troy ounce of gold is currently trading at just under $2,310, 0.7 percent higher, after the yellow precious metal temporarily fell below the $2,300 mark in the previous week.
Siemens is drawing attention to itself in the DAX. In view of the shortage of skilled workers, the group warns against a reduction in working hours and the four-day week. “From an economic perspective, we clearly cannot afford a discussion about shorter working hours,” said Judith Wiese, responsible for human resources on the Siemens board, to the “Süddeutsche Zeitung”.
The turbulence at the online broker FlatexDegiro doesn’t let up. Major shareholder Bernd Förtsch wants to be elected to the supervisory board at the general meeting on June 4th. He would replace Herbert Seuling, who announced on Friday that he was leaving the committee for personal reasons.
The legendary US investor Warren Buffett cannot find any attractive investment properties and allows his holding company’s reserves to rise to record levels. At the end of last quarter, Berkshire Hathaway had about $189 billion in cash and short-term government bonds. Buffett expects an increase in the current quarter to exceed the $200 billion mark.