market report
Without impulses from Wall Street and after a quiet holiday trading period, the DAX is likely to initially tread water. But the 16,000 mark remains within reach.
The broker IG assesses the German leading index before the start hardly changed at 15,954 points. Yesterday, relief at the preliminary agreement in the US debt dispute pushed the DAX up to 16,079 points at times. But then follow-up purchases were missing in the thin trade. The leading German index went down 0.2 percent from trading.
It shows that the agreement was essentially already priced in on the previous trading days,” said Thomas Altmann, portfolio manager at asset manager QC Partners. At the same time, the coincidence of Whit Monday, US Memorial Day and the British spring holiday ensured a quiet trading day .
The spending cuts associated with the settlement of the US debt dispute are likely to weaken the economy, especially since the market is also pricing in another interest rate hike in the summer, comments Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.
Last Friday, Wall Street was already fueled by the prospect of a compromise on the debt issue. The Dow Jones closed one percent higher at 33,093 points. The tech-heavy Nasdaq advanced 2.2 percent to 12,975 points. The broad S&P 500 gained 1.3 percent to 4,205 points. There was no trading in the US yesterday.
Investors in Japan are taking a breather today in anticipation of fresh US consumer data and Congress passing the US debt ceiling. The Nikkei was 0.3 percent lower at 31,128 points. giving up Monday’s gains that had propelled it to a 33-year high. The broader Topix index fell 0.4 percent to 2151 points.
“Yesterday’s high of 31,560 points should be followed by another day of profit-taking,” said Nomura strategist Kazuo Kamitani. “If the Nikkei could hold onto the 32,000 level, that would be a sign that the market is strong enough.” The Shanghai stock exchange was down 0.7 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.8 percent.
How much money the board members of DAX companies earn depends more and more on sustainability issues. This year, for the first time, executive board remuneration in all 40 companies in the stock index without exception is linked to so-called ESG criteria, explained the personnel consultancy Russel Reynolds Associates. This refers to the environment, social issues and correct corporate governance. On average, 8 percent of executive board remuneration depends directly on the achievement of these goals.
Commercial property specialist Aroundtown felt the effects of falling property values and property sales in the first quarter. Operating profit, measured by the Funds from Operations (FFO 1) indicator, which is important for the industry, fell by 5.3 percent year-on-year to EUR 84.6 million. The bottom line is that the company reported a loss of 21.6 million euros due to the lower valuation of its real estate. In the same period of the previous year, there was still a profit of 124.5 million euros on the balance sheet.