market report
The DAX is unlikely to move much in the middle of the week. In addition to the current minutes of the Fed’s meeting, the quarterly report from AI flagship company Nvidia is on the agenda after the US stock market closes.
There are no signs of any major jumps in the DAX midweek. Before the Xetra launch, broker IG estimated the German leading index at 18,740 points, up 0.1 percent. Last week’s record high of just over 18,892 points remains within reach, as does the round mark of 19,000 points.
Yesterday, the German leading index remained in negative territory all day and closed at 18,726 points, down 0.2 percent. The DAX thus consolidated at a high level, which is not unusual given the recent gains. In addition, there was little incentive to buy shares yesterday: news from the corporate sector was thin and there was also little new economic data.
Investors are waiting for Nvidia numbers
Today, however, that is likely to change: Nvidia’s quarterly figures are due to be released in Asia after the stock market closes. Yesterday, the topic of AI was already in focus and dominated trading thanks to the US company Microsoft’s “Build” developer conference. Today, the market will be watching closely to see whether the growth story continues and how Nvidia sees the prospects, according to the experts at Index Radar: “This could also answer the question of whether or not the tech stocks will show relative strength by the next reporting season.”
Investors in Asia took cover in early trading in anticipation of Nvidia’s results. “The whole world is watching Nvidia. The results will impact global stocks, especially US stocks, which will in turn impact Japanese stocks,” said Shuji Hosoi of investment bank Daiwa Securities.
Japan’s exports on the rise thanks to weak yen
In Tokyo, the Nikkei index, which includes 225 stocks, fell by 0.6 percent to 38,719 points, while the broader Topix was 0.5 percent lower at 2,744 points. The Shanghai stock exchange was trading almost unchanged at 3,157 points. The index of major companies in Shanghai and Shenzhen stagnated at 3,678 points.
In Japan, disappointing export data also weighed on the mood: Japan’s exports rose by 8.3 percent year-on-year in April thanks to the weak yen, but fell short of expectations. Analysts polled by Reuters had expected an increase of 11.1 percent. Imports also rose 8.3 percent in April after a 5.1 percent decline in March, roughly in line with economists’ estimates. As a result, the trade deficit was 462.5 billion yen ($2.96 billion) in April, down from a surplus of 387 billion yen in March.
Finnish central bank chief: ECB can lead the way in cutting interest rates
Things will also be exciting in the USA this evening when the minutes of the latest US Federal Reserve meeting are published. Investors are hoping for information about the further course of monetary policy in the USA. The market is currently expecting that the Fed will lower interest rates later than the European Central Bank (ECB), because inflation in the world’s largest economy has so far proven to be even more stubborn.
Finnish central banker Olli Rehn also shares this opinion: He believes that the ECB will not wait for the US Federal Reserve to cut interest rates. “What the Fed does will not determine when the ECB will cut interest rates,” said the head of the Finnish central bank and member of the ECB’s Governing Council. At the same time, he stressed that the euro central bank will not commit to a predetermined interest rate path. “Even if we do not make policy in a vacuum, the ECB is not the 13th district of the Federal Reserve,” said Rehn.
Record high for tech stocks
US investors didn’t venture far out of the window yesterday. In percentage terms, the changes remained small, but the Nasdaq 100 selection index was still just enough to reach a new record high of 18,723 points. It ended trading at 18,713 points, an increase of 0.2 percent.
The leading index Dow Jones also ended trading slightly higher at 39,872 points, up 0.2 percent, but remained below the 40,000 point mark that it had recently overcome. Similarly, the market-wide S&P 500 index, which advanced 0.3 percent to 5,321 points.
Microsoft promotes new tools for developing AI software
Microsoft is expanding the capabilities of its AI assistant Copilot – which was further developed using the technology behind ChatGPT. It should no longer just support individual users, but also teams made up of several employees. For example, the program is intended to keep an eye on the agenda of meetings and keep minutes, as Microsoft explained yesterday at its “Build” developer conference. The new PC architecture is also subordinated to this goal. A new additional chip will only take care of AI applications. This is supposed to make the computer faster and extend battery life.
Manned first flight of the Boeing Starliner postponed again
The first manned flight of the Boeing Starliner space capsule remains on hold. The launch, originally scheduled for May 25, has been postponed indefinitely due to repairs to a helium leak in the propulsion system, the US space agency Nasa said. “Work is continuing and the next possible launch opportunity is still being discussed.” The launch in May had already been postponed several times due to problems with the Atlas 5 launch vehicle.