market report
The DAX is likely to attempt a recovery after last week’s losses. But there are currently no signs of a dynamic counter-movement.
The broker IG estimates the DAX to be 0.3 percent higher at 18,062 points before the start of Xetra trading. Last Friday, the German leading index slipped by 1.4 percent to 18,002 points, and in two days it had lost 3.7 percent. The reasons were the political uncertainty in France, the uncertain US interest rate policy and the renewed trade conflict with China.
“Investors must expect significantly stronger market fluctuations between now and the election and in the weeks after than recently,” commented Ulrich Stephan, chief investment strategist for private and corporate clients at Deutsche Bank. “However, many expectations and concerns are now likely to have been factored into the prices of shares and bonds,” is his assessment.
Analyst Claudia Windt from Landesbank Helaba believes that the stock markets will at least make a moderate recovery from the recent setbacks this week. She is counting on the upcoming US data on important retail sales and industrial production “not dampening hopes of a Fed interest rate cut in September”. In addition, the purchasing managers’ indices for the Eurozone industry and the German ZEW index should continue to signal an economic recovery.
Current economic data from China is unlikely to please investors: Chinese industrial production weakened in May and missed analysts’ expectations. Although it rose by 5.6 percent year-on-year, it slowed from 6.7 percent in April, according to official data from the National Bureau of Statistics (NBS).
Trading on Wall Street was mixed on Friday: The enthusiasm surrounding the topic of artificial intelligence (AI) had taken the technology exchange Nasdaq to another record high. This time it was the more optimistic outlook of the media software group Adobe that drove the technology sector a new level higher. The broad market S&P 500 and the Dow Jones Industrial, meanwhile, fell moderately.
The Dow ended the day down 0.2 percent at 38,589 points. Over the course of the week, the decline was just over half a percent. The broad-based S&P 500 index fell by 0.04 percent to 5,431 points after several days of record highs. The Nasdaq 100 technology index climbed 0.4 percent to 19,659 points. Over the course of the week, this means an increase of 3.5 percent for the technology-heavy index.
Mixed economic data from China pushed Asian stock markets into negative territory today. In addition, political uncertainty in Europe dampened risk appetite.
In Tokyo, the 225-stock Nikkei index lost 1.8 percent to 38,106 points after retail sales beat expectations in May but industrial production and fixed asset investment disappointed. Other data showed that real estate investment continued to fall in May, highlighting ongoing tensions in the property sector. The broader Topix fell 1.5 percent to 2,705 points.
In China, the central bank (PBOC) left a key interest rate unchanged, ending speculation about a cut following surprisingly weak data on bank lending. The Shanghai stock exchange lost 0.4 percent to 3,020 points. The index of the most important companies in Shanghai and Shenzhen stagnated at 3,539 points.
Pfeiffer Vacuum will soon have to leave the SDAX. According to the German stock exchange, the vacuum pump manufacturer did not publish its quarterly financial report on time. The stock will therefore no longer be included in the index of smaller stocks from Monday, June 24, the stock exchange operator announced. The announced removal of Thyssenkrupp Nucera is therefore null and void. The electrolysis specialist will remain in the SDAX.
Index changes are particularly important for funds that actually replicate indices (physically replicating ETFs). These funds then have to be restructured accordingly, which can have a short-term impact on share prices.