market report
A small trend reversal on the US stock exchanges in the evening should make it easier for the DAX to get off to a good start on the trading day. However, the situation on the stock markets remains tense and the upside potential is limited.
The leading German index is expected to be at 15,650 points at the start of trading on XETRA. This is currently indicated by the pre-market indications. The DAX had already saved a small plus from trading yesterday and closed at 15,603 points.
Weak economic data from China continue to cause concern. There are also fears that the US may soon end its pause in interest rate hikes in order to further contain inflation. At the end of the week, an important central banker meeting will start in Jackson Hole in the USA, which many investors are now waiting for.
On Wall Street, the Dow Jones closed 0.1 percent weaker at 34,468 points. However, the index has recovered from significantly larger losses in the course of the day. The broader S&P 500, on the other hand, rose slightly by 0.7 percent to 4398 points. The technology-heavy Nasdaq index closed the trading day with a clear plus of 1.5 percent at 13,497 points.
A mixed picture is offered in the morning on the stock exchanges in the Far East. Led by chip stocks, the Japanese Nikkei index is currently up around 0.7 percent at 31,776 points. The broader Topix index rose 0.7 percent to 2258 points.
The Shanghai stock exchange, on the other hand, was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.2 percent. Yesterday’s small interest rate cut by the Chinese central bank is still having an effect here, but observers see it as rather half-hearted. China wants to support the weakening economy with monetary policy measures.
On the foreign exchange market, the euro is fighting for the $1.09 mark. The European single currency is currently trading at $1.0908. Oil prices are slightly in reverse in early trading. A barrel of North Sea Brent currently costs $84.05, a barrel of US WTI is traded at $79.95. The price for a troy ounce of gold is currently 1894 dollars.
The German reinsurer Munich Re from the DAX can be promoted to the European index Stoxx Europe 50 in September, the US investment bank JPMorgan expects. In addition, the major Dutch bank ING should also be included as a second successor, as analyst Pankaj Gupta writes in a study. The main reason is the price losses of Adyen shares. This will in all likelihood automatically drop the payment processor from the index. Adyen shocked investors last Thursday with its quarterly report and outlook.
After the US market closed, the video streaming provider reported better than expected business prospects, and the stock rose significantly in after-hours trading. Zoom expects revenue of between $1.115 billion and $1.120 billion for the third quarter. Revenue for the second quarter rose 3.6 percent to $1.14 billion, beating analysts’ expectations. Zoom had grown significantly during the corona pandemic due to the trend towards flexible working between home office and office. In the meantime, however, there is fierce competition from Slack, Salesforce or Microsoft Teams, for example.
The chip designer ARM, whose technology is found in practically all smartphones, makes its IPO official. The company, which belongs to the Japanese technology group Softbank, published its stock market prospectus yesterday. The information shows, among other things, that the ARM business yields stable profits. In the last fiscal year ended March 2014, ARM generated a profit of $524 million on sales of around $2.68 billion. Apple and Samsung, among others, are developing the processors for their smartphones based on the chip architectures designed by ARM.
The world’s largest music company Universal Music and Google’s video platform YouTube want to work together on the use of artificial intelligence (AI) in the industry. As part of the partnership, musicians will be able to access and experiment with AI technologies. Universal Music and Youtube are so influential that their cooperation could set the rules for the industry. The music industry is trying to find an orderly way of dealing with AI tools that can transform business.