market report
After China’s partial ban on Apple products, tensions between the US and China are growing again. Can the DAX stay above the important mark of 15,700 points?
The growing tensions between the USA and China are weighing on the global stock markets at the end of the week. This should not leave investors in Frankfurt indifferent either. According to pre-market indications, the DAX can initially defend the 15,700 point mark. The day before, German standard values had closed 0.1 percent lower at 15,719 points.
Negative guidelines for DAX trading come from the overseas stock exchanges. Fears of a renewed trade dispute between the USA and China were making the rounds there. In New York yesterday, technology stocks that were considered riskier had to give up – above all the Apple Group, which was faced with a ban on its iPhones in China.
Apple shares fell 2.9 percent after losing 3.6 percent on Wednesday. The iPhone manufacturer’s market capitalization has fallen by around $200 billion in two days. “China’s partial ban on Apple products has put trade wars and US-China decoupling back on the agenda,” said Capital.com analyst Kyle Rodda.
Technology stocks then went downhill in New York. The technology-heavy Nasdaq closed 0.9 percent lower at 13,748 points. The broad S&P 500 lost 0.3 percent to 4,451 points. The Dow Jones index of standard stocks, on the other hand, advanced a moderate 0.2 percent to 34,500 points.
Investors continue to focus on US interest rate policy. Following recent robust economic and labor market data, concerns remain about a longer interest rate hike cycle than previously hoped.
According to Dallas Federal Reserve Bank (Fed) President Lorie Logan, further policy tightening will be necessary to bring inflation down to 2 percent in a timely manner. “Forecasts are inherently uncertain. However, I expect there is still work to be done,” she said in a speech to the Dallas Business Club at Southern Methodist University.
The tensions between China and the USA are also causing the Asian stock markets to stumble at the end of the week. The SSE Composite, the leading index of the Shanghai Stock Exchange, is currently 0.5 percent in the red. The Nikkei index, which includes 225 stocks, lost 1.3 percent to 32,549 points shortly before the close of trading in Tokyo.
An economic report is also weighing on the prices. Japan’s economy grew less significantly than expected in the second quarter. As the government announced today based on revised data, gross domestic product (GDP) rose by an annualized 4.8 percent between April and June. The official statisticians initially calculated growth of 6.0 percent.
After its recent significant gains against many important currencies, the dollar is weakening somewhat at the end of the week. At the same time, the euro rose by 0.2 percent to $1.0714, after falling below the $1.07 mark the day before. A troy ounce of gold costs $1,924 this morning.
Zalando is attracting attention in the DAX. The founders Robert Gentz and David Schneider will lead the online fashion retailer for another four years. The supervisory board has extended the contracts of the two managers until December 2027, the DAX group announced yesterday evening in Berlin. Gentz and Schneider founded Zalando in 2008 and took it public in 2014.
The founders of the robot car company Argo AI, which was closed by Ford and VW, are switching to self-driving trucks. Yesterday they introduced the new company Stack AV, which is financed by the Japanese technology investor Softbank. The head of the new company is Brian Salesky, who already held the position at Argo AI.
Electric car maker Rivian says it will benefit from significant deflation in battery material prices at the end of this year and in 2024. This was announced by the company’s chief financial officer, Claire McDonough, at a Goldman Sachs technology conference. Rivian shares are up about 27 percent so far this year.