market report
The trading day begins the way yesterday ended: the DAX posts further losses. After weak economic signals from China and before statements by the US Federal Reserve in the evening, investors remain reserved.
At 15,690 points, the DAX was down 0.7 percent shortly after the start of XETRA trading. There is still no new momentum, yesterday the DAX closed 0.3 percent lower at 15,772 points.
After the US stock exchanges closed on Monday for the Labor Day holiday, the US indices went down last night. Disappointing data from the service sector in China and rising US bond yields caused the Dow Jones index to close 0.6 percent lower at 34,641 points. The tech-heavy Nasdaq fell 0.1 percent to 14,020 points.
Before signals from the US Federal Reserve (Fed), the courses could develop little momentum today. The Fed will present its current economic report (Beige Book) in the evening. It will show how the US economy is coping with the rise in interest rates and the still relatively high inflation.
While the Shanghai stock exchange was down 0.4 percent in the morning, reacting to the previous day’s weak data from the Chinese service sector, Japan’s stock markets continued to climb. After a representative of the Japanese central bank BoJ stated that he saw the first signs of an exit from the ultra-loose monetary policy, the Nikkei index closed 0.6 percent higher at 33,241 points.
The euro held just above its three-month low against the dollar the day before this morning. In the morning, the European common currency cost $ 1.0731. The euro is currently under pressure from a stronger dollar and speculation about an interest rate pause in the euro area. The uncertain global economic outlook fueled demand for the US currency, experts said.
The crude oil market is concerned about a lack of oil supply. Saudi Arabia and Russia announced yesterday that they would extend their supply cuts by a further three months until the end of the year, pushing up oil prices by around two percent. Brent oil from the North Sea has meanwhile risen in price to over 90 dollars for the first time since November. Brent is trading at $89.85 this morning.
In July, the German manufacturing sector received 11.7 percent fewer orders than in the previous month, according to the Federal Statistical Office. On average, analysts had only expected a setback of 4.3 percent. However, the strong decline follows a strong increase in June, which at 7.6 percent was even somewhat more pronounced than previously known. Above all, a “very extensive major order” in June caused a burden in the following month, as the statisticians further reported.
In the leading index, the shares of the real estate group Vonovia and Daimler Truck are at the top with small gains in the morning. The biggest minus signs are in the shares of Deutsche Bank and Commerzbank. Shares in Deutsche Börse and Airbus also lost ground.
Siemens Energy papers are increasing. The British investment bank Barclays has included the DAX group in its rating with “Overweight” and a target price of EUR 19. According to analyst Vladimir Sergievskiy, Siemens Energy is undervalued in the market and is undervalued. He remains generally skeptical about manufacturers of wind turbines like the subsidiary Siemens Gamesa, but a 50 percent price drop in the past three months is not justified
The Internet service provider United Internet was promoted to the MDAX index of medium-sized stocks in mid-September. The share of the mechanical engineering company Krones has to give way for this, as the German stock exchange announced after the index review in the evening after the close of trading. Stock exchange newcomer Thyssenkrupp Nucera takes the place of United Internet in the small value segment SDAX. Ionos will also enrich the SDAX in the future. The supplier of image processing components, Basler, has to make room for this. The changes will take effect on September 18th.
The Mainz-based special glass manufacturer Schott wants to list its pharmaceutical division on the stock exchange this year. Trading in the shares on the Frankfurt Stock Exchange should start by the end of 2023. Among other things, Schott Pharma manufactures syringes made of glass and special glass plastic, ampoules and vials for the medical sector. The division, which was spun off in August 2022, is benefiting from the strong growth in drugs that are administered by injection.
According to a newspaper report, the US antitrust authority FTC plans to file a lawsuit against Amazon’s business practices this month. The lawsuit targets the company’s logistics program, third-party website pricing, and will propose “structural remedies” that could lead to the company’s break-up, according to the Wall Street Journal.