market report
The head of the US Federal Reserve has rejected speculation that monetary policy will be eased in the near future. The newly arisen interest rate worries make investors want to buy shares – the DAX should start deep in the red.
US Federal Reserve Chairman Jerome Powell unsettled investors with his testimony before the Capitol Banking Committee. The DAX is heading for significant price losses, the broker IG assesses the German standard values at the hour 0.8 percent lower at 15,857 points.
The DAX is thus on course for its weekly low of 15,810 points, from which it was able to move up yesterday in the course of trading and thus reduce the minus to 0.2 percent. This mark now represents an important breakpoint in the DAX, a slide below would accelerate the price losses in the DAX.
As a reminder: Just a week ago, the DAX had marked an all-time high at 16,427 points. But this is now a long way off. It was obviously a bull trap, a false breakout on the upside.
From a fundamental perspective, it is primarily interest rate concerns that are currently weighing on the markets. Federal Reserve Chairman Jerome Powell told the US Capitol Banking Committee yesterday that there could be “maybe two more” rate hikes this year given persistent inflation.
The surprisingly significant increase in interest rates by the Bank of England is also helping investors focus more on interest rates again. The British central bank continued its fight against high inflation yesterday with an unexpectedly significant interest rate hike of 0.50 percentage points to 5.0 percent.
The prospect of further rising US interest rates had already hit the indices on Wall Street in regular trading the day before. The Dow Jones index of standard values closed with little change at 33,946 points. The broad S&P 500 gained a moderate 0.4 percent to 4381 points.
Only the technology-heavy Nasdaq recorded larger premiums thanks to price gains at Apple and Amazon and advanced around one percent to 13,630 points. In the morning, however, US futures are all in the red; the Dow future is currently down 0.4 percent, the Nasdaq future is down 0.5 percent.
The negative guidelines from Wall Street are also making investors on the Asian stock markets nervous. They are also concerned about the negative economic impact of a tight policy by the central banks. The leading Japanese index, the Nikkei 225, was down 1.8 percent shortly before the close of trading in Tokyo. The Shanghai Stock Exchange will be closed today for a holiday.
Meanwhile, the prospect of further rate hikes is bolstering the dollar. At the same time, the euro fell 0.2 percent to $1.0931. In the further course of trading, fresh economic data could cause movement on the foreign exchange and stock markets: At the end of the week, the purchasing managers’ indices for industry and services for Germany, the euro zone and the USA are important leading economic indicators on the agenda. A troy ounce of gold is trading at $1,917 this morning.
In the DAX, Siemens Energy will come into focus in the morning. The group has withdrawn its earnings forecast for the 2022/23 fiscal year due to ongoing problems at its subsidiary, the wind turbine manufacturer Siemens Gamesa. Persistent quality problems in the land turbine business are leading to significantly higher costs than previously thought. Siemens Gamesa has already spoiled the plans for the Munich company several times.