market report
The US debt issue is over and the DAX is increasing significantly. In the early afternoon, however, the next important date is the publication of the monthly US labor market data.
The DAX rose in early trading by 0.7 percent to 15,970 points. The leading German index had already increased by 1.2 percent to 15,853.66 points yesterday.
“It’s the day on which we can finally put a stop to the US debt dispute. The deal had already been priced in on the stock exchanges in advance. Nevertheless, we see a sigh of relief among stockbrokers,” commented market expert Thomas Altmann from QC partners. Now some investors who have withdrawn for fear of failure are getting back on board. However, it is questionable whether this effect will last long.
“While the debt dispute in the USA is no longer an issue, the focus is increasingly on the central banks,” say Helaba’s experts. Recently, some representatives of the US Federal Reserve have indicated a pause in the rate hike cycle. “A lot probably depends on how today’s labor market report will turn out,” according to the assessment of the experts. Markets are now pricing in a 20 percent chance that the Fed will hike rates by 25 basis points this month, compared to a 50 percent chance a week earlier, according to the CME FedWatch tool.
The monthly US jobs report will be released today at 2:30 p.m. “For further price gains, you certainly need a mix of a stable job market and a US Federal Reserve, which will say goodbye to the observer role at its next meeting in less than two weeks,” says analyst Konstantin Oldenburger from broker CMC Markets.
Experts polled by “Reuters” expect a solid increase in jobs of 190,000, which, however, would no longer come close to the number of 253,000 achieved in April. “Reducing concerns about interest rates should actually support the stock market, unless concerns about the economy increase again at the same time,” concluded the Helaba experts.
For the eurozone, too, investors are hoping for an interest rate break soon. From the point of view of central bank director Fabio Panetta, the ECB is already close to the interest rate peak. “My feeling is that we haven’t reached the end of our cycle of interest rate hikes, although we’re not far from it,” the member of the European Central Bank’s (ECB) six-strong executive team told French newspaper Le Monde. The monetary policy debate will soon shift from the question “how high?” to the question “how long?” relocate There is considerable scope to fight inflation by keeping interest rates high for as long as necessary.
The progress in the US debt dispute and the expectation that interest rates would initially not rise any further had also driven the US stock exchanges yesterday. The Dow Jones rose 0.5 percent to 33,061 points. The broader S&P 500 gained one percent to 4,221 points. The Nasdaq technology exchange index climbed 1.3 percent to 13,100 jobs.
The avoidance of a default by the USA also provided relief on the Asian stock exchanges. In Tokyo, the leading Nikkei index closed at its highest level since July 1990. The Tokyo stock market barometer rose by 1.2 percent to 31,524 points and thus achieved the eighth week of profit in a row. The broader Topix index gained 1.6 percent.
In China, the Shanghai Stock Exchange was 0.8 percent higher. Hong Kong’s Hang Seng Index advanced 3.8 percent, its highest one-day gain since early March.
The electronics retailer Ceconomy wants to become more profitable by the middle of the decade. Adjusted earnings before interest and taxes should increase to over 500 million euros by the 2025/26 financial year, as the parent company of Mediamarkt and Saturn announced. For comparison: in 2021/22 it was 197 million euros. Gross margin and free cash flow are also expected to improve. The aim is to significantly increase sales in online trading. In addition, the stores of Mediamarkt and Saturn are to be comprehensively modernized and services expanded.
The US competitor Lululemon is now drawing investors’ attention to the German sporting goods manufacturers Adidas and Puma. Market observers pointed to strong numbers and Lululemon’s increased outlook. The company, best known for its yoga apparel, reported strong first-quarter results and also presented an outlook that beat expectations.
Shortly before the expected presentation of data glasses from Apple, Meta boss Mark Zuckerberg announced a new model of his Quest glasses for the fall. He emphasized that the headset brings together digital objects and real environments in the user’s field of vision.
According to media reports, this should also be a central function of Apple glasses. According to the media reports, the price of the Apple device could reach $3000. Zuckerberg announced a price of around $500 for the Quest 3.