market report
Investors are taking things a little calmer on the trading floor today. Important inflation data from the USA urges caution. The German benchmark index remains close to its record highs.
According to pre-market indications, the stock market barometer is expected to be at 17,385 points at the start of trading on XETRA in the morning. This corresponds to a discount of 0.2 percent compared to yesterday’s closing level. Yesterday the DAX closed unchanged at 17,423 points, but during the day it reached another all-time high of 17,461 points.
Investors in New York also took a small step back in the evening after the rally in AI stocks, especially Nvidia, had recently achieved record highs there too. The Dow Jones index of standard stocks closed 0.2 percent lower at 39,069 points. The technology-heavy Nasdaq fell 0.1 percent to 15,976 points. The broad S&P 500 lost 0.4 percent to 5,069 points.
In the second half of the week in the USA, the price index for personal consumption expenditures for January will be on the agenda, an important indicator of price stability. They could also provide information about an initial interest rate cut by the US Federal Reserve (Fed). Many market participants now expect the Fed’s initial easing to begin in June, rather than May.
Inflation remains high in Japan in January. The so-called “core index”, which excludes prices for fresh food and energy and is monitored by the Japanese central bank as a benchmark for broader price developments, rose 3.5 percent in January compared to the previous year. Persistently high inflation suggests that major companies will offer significant wage increases at collective bargaining negotiations on March 13, which could pave the way for an end to negative interest rates in March or April.
Stock markets in Japan barely reacted to the data. The Nikkei index, which includes 225 stocks, closed unchanged at 39,2040 points. The broader Topix index rose 0.2 percent to 2,679 points. The Shanghai stock exchange, on the other hand, was up 0.5 percent. The index of major companies in Shanghai and Shenzhen gained 0.4 percent.
On the foreign exchange market, the euro continues to gain slightly against the dollar. The European common currency can also defend the 1.08 mark in the morning at currently 1.0851 dollars. Oil prices also changed little in early trading. A barrel of North Sea Brent is currently trading at $81.75. A troy ounce of gold rose slightly to $2,034.
The focus of interest on the German stock market this morning is the insurance giant Munich Re, which is presenting its annual figures today. The company had already announced that evening that it would significantly increase its dividend. For the past year, 15 euros per share are to be distributed. In addition, the reinsurer wants to buy back its own shares worth up to 1.5 billion euros.
The automotive and industrial supplier Schaeffler is planning a new factory in the USA. The company plans to manufacture components and systems for electric vehicles in Dover (Ohio). Schaeffler announced that evening that more than $230 million would be invested there and in the expansion of the plant in nearby Wooster by 2032. Construction of the new Dover location will begin in the middle of this year and is scheduled to be completed in fall 2025.
According to insiders, the cosmetics group Douglas is about to go public. Douglas is expected to make the official announcement of an initial public offering, the so-called Intention To Float (ITF), in the coming days, several people familiar with the process told Reuters. It usually takes around four weeks between the official announcement and the first day of trading on the stock exchange. The chain, which is majority owned by the financial investor CVC, would aim for an initial listing on the Frankfurt Stock Exchange before Easter.
Following an investigation, the US Federal Aviation Administration (FAA) has denounced quality assurance deficiencies at Boeing. There is confusion among employees about their role in safety management because procedures and training are complex and constantly changing. In the commercial aircraft division, the FAA Commission did not find a consistent and clear way for employees to report quality deficiencies.