market report
After the record rally of the previous week, the air seems to be out for now. The series of new historical highs in the DAX is in danger of breaking. Are investors now getting cold feet just before the 18,000 point mark?
The DAX is likely to start trading with slight price gains. The broker IG currently estimates German standard values 0.1 percent higher at 17,752 points. A new record high on the German stock market is therefore not immediately expected at the beginning of the new stock market week.
On Friday, the DAX reached its seventh record in a row in early trading at 17,816.52 points. Stock market expert Thomas Altmann from QC Partners spoke of the longest record series since 2015. But then the price gains crumbled, in the end there was only a small increase of 0.3 percent to 17,735 points.
The fact is: profit-taking would really not come as a surprise after the long series of price increases in the DAX. Experts point to the “overbought” market situation. In fact, there was an increase of 1.8 percent for the last stock market week alone.
Tailwind for the DAX is coming from Japan this morning. At the beginning of the week, the leading index Nikkei surpassed the 40,000 point mark for the first time. The ongoing boom in artificial intelligence (AI) on US stock markets is boosting Japanese technology stocks. At the close of trading in Tokyo, the Nikkei index, which includes 225 stocks, was 0.5 percent higher at 40,109 points.
Overseas investors appear to be leading the buying, and many appear to be investing with a medium to long-term perspective, said Masahiro Ichikawa of Sumitomo Mitsui DS Asset Management. “I think the market will continue to rise.”
The requirements from Wall Street are also impressive. Buoyed by a rally in the tech sector, the Dow Jones index of standard stocks turned positive on Friday afternoon and closed 0.2 percent higher at 39,087 points. The technology-heavy Nasdaq advanced 1.1 percent to 16,274 points. The broad S&P 500 gained 0.8 percent to 5,137 points. It was a record close for the Nasdaq and S&P 500.
The dollar shows little movement in early foreign exchange trading. At the same time, the euro is trending sideways at $1.0843. The troy ounce of gold has lost little after its recent strong gains, trading at $2,081 this morning.
Oil prices are trending sideways, a barrel (159 liters) of North Sea Brent costs $83.51. Members of the OPEC+ oil cartel extended their voluntary production cuts into the second quarter at the weekend. Saudi Arabia said on Sunday it would maintain production cuts until the end of June.
VW shares in the DAX could be worth a look today. The group is holding out the prospect of an IPO for its battery subsidiary after production begins. The financing plan for PowerCo remains unchanged, said VW Chief Technology Officer Thomas Schmall in an interview with the Reuters news agency. An IPO remains an option for the future.
The chemical company Evonik is cutting many jobs as part of a large-scale administrative restructuring. “Up to 2,000 jobs will be eliminated worldwide, a disproportionate number of which will be management positions,” as the MDAX group announced this morning. In Germany, around 1,500 jobs are affected. The group employs a total of 33,000 people.
The energy supplier EnBW wants to break ground today for what the industry says is the largest solar park in the country. According to EnBW, the plant in Langenenslingen (Biberach district) is scheduled to go into operation in 2025 with an installed capacity of 80 megawatts and will therefore be able to supply around 30,000 three-person households.
The chip company Nvidia became the third US company ever to cease trading on the stock exchange on Friday with a market value of more than two trillion dollars. The deciding factor was a price increase of four percent to $822.79. Previously, only Apple and Microsoft had closed with a market value of more than two trillion dollars. Microsoft is currently worth more than three trillion dollars, Apple recently slipped below this mark again.