market report
So far, there has been a small plus in the DAX for this stock exchange week. But that could change today. Lousy specifications from the US technology exchange Nasdaq and mixed SAP figures are depressing the buying mood of investors.
The DAX should start the last trading day of the week with slight losses. The broker IG estimates the 40 German standard values 0.6 percent lower at 16,112 points. This means that the DAX would also give up its small weekly gains in full.
Negative targets for DAX trading come from US technology stocks at the end of the week. Disappointing business figures from Tesla and Netflix scared investors in the evening, the Nasdaq index closed 2.1 percent lower at 14,063 points. The broad S&P closed 0.7 percent weaker at 4534 points.
In contrast, the Dow Jones index of standard values was able to increase 0.5 percent to 35,225 points and thus achieve its ninth daily gain in a row. It is the longest winning streak in almost six years. “The Dow has simply been neglected in the recent rally in growth stocks, and now people are putting their money back into some of the stocks that aren’t known to be growing,” said David Russel of financial services provider TradeStation.
Asian equities have reacted mixed to the mixed US guidance. The Nikkei index, which comprises 225 stocks, is 0.4 percent lower shortly before the Tokyo market closes. The Shanghai stock exchange, on the other hand, is up 0.4 percent. The index of major companies in Shanghai and Shenzhen gained 0.5 percent.
Markets are now looking to next week as the Fed, European Central Bank and BOJ discuss the interest rate outlook. “While we expect the Fed to make the last rate hike of the cycle in July, we don’t think the Fed will signal that move just yet,” said analysts at TD Securities.
The European common currency shows little movement against the dollar. Currently, 1.1138 dollars are paid for one euro. There is also little movement on the gold market: a troy ounce of gold currently costs $1,970, which is 0.1 percent less.
In the DAX, the focus is on the SAP share in the morning. Europe’s largest software manufacturer has cut its forecast for its declared future business. The DAX heavyweight corrected its annual targets yesterday after XETRA closed because cloud revenues were weaker than expected.
Some large customers from the public sector have opted for a license instead of a cloud solution due to ongoing economic uncertainties, said CEO Christian Klein. The news is not well received on the stock exchange, the shares are listed on the Tradegate trading platform almost five percent below their XETRA closing price.
According to the company, the VW subsidiary Audi is negotiating with the Chinese joint venture partner SAIC about a joint development of electric cars. SAIC chief engineer Zu Sijie told reporters his company has reached an agreement with Audi to jointly accelerate the development of electric cars. He did not give details. Audi said it is working with partners on the future direction of business in China.
After the US financial investor Silver Lake secured a good 84 percent of the shares in Software AG, there were unscheduled changes in the MDAX and SDAX. As the index provider Stoxx announced on the German Stock Exchange in the evening, the Darmstadt-based company will be deleted from the MDAX and replaced by the Regensburg-based automotive supplier Vitesco. The Bundesliga club Borussia Dortmund takes its place in the SDAX. The changes will therefore take effect on Tuesday.
After British plans to monitor encrypted data, Apple has confirmed that the iPhone group would under no circumstances build “back doors” for authorities into its products. According to the BBC and the Guardian newspaper, the Apple statement in consultations with the British government states that the project could force security functions of critical importance to be removed from the British market.
According to Google, it has started developing artificial intelligence to help media professionals write articles and headlines. The project is still in its infancy, the internet company said. The newspaper “New York Times” reported, however, that their managers and those of the “Washington Post”, the publisher News Corp. and the owners of the “Wall Street Journal” had already been informed about Google’s work.