market report
The record hunt in the DAX has run out of momentum. There are signs of a cautious start to the new stock market week. Now it remains to be seen whether a downward turnaround in the DAX has been initiated on the expiry date.
The tide on the German stock market has changed. Investors continue to have to nibble on the fact that the European Central Bank (ECB) dampened expectations of lower interest rates in the near future last Thursday. The broker IG estimates the DAX 0.1 percent lower at 16,740 points this morning.
The record high of 17,003 points that the DAX set last week is becoming increasingly distant. From a technical chart perspective, there is even a risk of a false breakout. It would come at an inopportune time, as Friday was a big expiry day: investors on the futures markets closed their long and short positions.
Expiry dates often represent turning points in the market, points out Christian Zoller, chart technology expert at the direct bank ING. “Therefore, a high in the long upward movement could now be reached and a real correction could subsequently become possible.”
On Wall Street, too, investors’ euphoria about interest rates had fizzled out at the end of the week; the major indices only posted modest gains: the US leading index Dow Jones gained 0.2 percent to 37,305 points. The tech-heavy Nasdaq advanced 0.4 percent to 14,813 points, while the broad S&P 500 closed little changed at 4,719 points.
New statements from US central bankers caused a gloomy mood. The current talks about interest rate cuts are “premature,” said Fed representative John Williams in an interview with the US broadcaster CNBC.
Investors in Japan held back this morning in anticipation of signs of a possible change in Japan’s ultra-loose interest rate policy. The Bank of Japan (BOJ) is meeting tomorrow. According to market rumors, it is thinking about how and when it might say goodbye to negative interest rates. The Nikkei index, which includes 225 stocks, ended trading with a loss of 0.6 percent to 32,759 points. The Shanghai stock exchange is currently down 0.4 percent.
In Asian currency trading, the euro advanced 0.2 percent to $1.0915. The different interest rate prospects in the euro and dollar zones had recently strengthened the European common currency. Fresh price impulses for foreign exchange and also for stock trading could come from the ifo business climate index during trading. The most important German leading indicator will be published at 10 a.m. The recession signals from the German economy had recently increased.
The recently decided changes to the Deutsche Börse indices come into force today. In the leading index DAX everything remains the same. Shares in the newcomer Schott Pharma, the investment company Mutares and the pump and valve manufacturer KSB are moving up to the SDAX. For these three, the Xing parent New Work, the IT security service provider Secunet and the gaming provider Zeal Network will have to leave.
In addition, the real estate specialist Aroundtown, the wafer manufacturer Siltronic and the filling and packaging system manufacturer Krones will be promoted from the SDAX to the MDAX for medium-sized stocks. To achieve this, the television company ProSiebenSat.1, the mechanical and plant manufacturer Dürr and the industrial recycler Befesa have to vacate their positions and be relegated to the SDAX.
Lufthansa wants to fly to Israel again from January. After the airline stopped its regular scheduled flights to and from Tel Aviv after the start of the Gaza War, it plans to offer seven weekly connections from Germany to the Israeli coastal metropolis again from January 8th.
The wind and solar park operator Energiekontor is raising its profit outlook after completing the sale of a wind farm project in Scotland. This year, pre-tax earnings are expected to increase by around 30 to 60 percent to 80 to 100 million euros, as the SDAX company announced on Friday evening.
The medical technology group Carl Zeiss Meditec wants to expand its offering in the field of ophthalmology and is taking over the Dutch specialist Dutch Ophthalmic Research Center (Dorc). The transaction is worth 985 million euros. The purchase price is to be paid largely from the existing net liquidity.
Bawag has sold the German Start:Bausparkasse AG (formerly Deutscher Ring Bausparkasse) to Wüstenrot Bausparkasse AG, which is part of the W&W Group. Subject to the approval of the antitrust and regulatory authorities, the transaction is expected to be completed in the course of 2024. The parties have agreed not to disclose the purchase price.