market report
It is important for the DAX companies that China’s economy gets back on track. It’s fitting that Beijing announced new economic stimulus measures at the weekend.
The DAX is about to have a quiet start to the new stock market week. The broker IG currently values the 40 German standard stocks very close to their Friday closing price of 19,374 points.
The DAX chart technology brightened significantly last week after the German stock market barometer once again successfully tested the much-noticed mark of 19,000 points. On the upside, the all-time high of 19,492 points is now the next target for the DAX bulls.
Support for the DAX has recently also come from China: many investors hoped that the export market in Asia, which is important for many DAX companies, would grow somewhat more strongly again, wrote Commerzbank expert Andreas Hürkamp.
Only at the weekend did Beijing announce further measures to revive its ailing economy. Finance Minister Lan Foan promised, among other things, to help local governments deal with their debt, while increasing government bond spending and offering subsidies for low-income earners. However, Minister Lan did not provide specific details about the amount of an economic stimulus package.
The new economic aid is still being well received on the Chinese stock exchanges. The leading index of the Shanghai stock exchange, the SSE Composite, is currently up 1.9 percent. In Japan, markets remained closed for a public holiday.
The US futures are hardly moving this morning. On Friday, a good start to the reporting season by the major US banks brightened the mood on Wall Street: The US standard value index Dow Jones ended trading with an increase of 1.0 percent at 42,863 points. The broad S&P 500 gained 0.6 percent to 5,815 points, and the technology-heavy Nasdaq rose 0.3 percent to 18,342 points.
The good mood of the previous week on the gold market continues: The price of a troy ounce of gold is currently rising by 0.1 percent to $2,659. The yellow precious metal continues to keep its sights on its record high of $2,685. The euro fell slightly to $1.0923.
Meanwhile, investors on the raw materials market are not convinced by the new economic stimulus measures from Beijing, and concerns about declining demand from China continue to dominate trading. Accordingly, the barrel (159 liters) of Brent oil from the North Sea fell by 1.2 percent to $78.10 in the morning.
Bitcoin continued to approach resistance in the $65,000 area at the start of the trading week. The oldest and best-known digital currency recently cost $63,934 on the Bitstamp trading platform this morning, almost two percent more than the day before. Another upward breakout attempt is looming.
Bayer shares in the DAX could be worth a look. The pharmaceutical and chemical company is making rapid progress in restructuring its company. About 70 percent of all Bayer teams are already working in the new organizational model, said CEO Bill Anderson the Frankfurter Allgemeine Sonntagszeitung. “By the end of the year it will be 80 to 90 percent. At first I thought we wouldn’t be there until autumn 2025.”
Lufthansa boss Carsten Spohr expects further cuts to the flight schedules of the aviation industry in Germany. “I am very worried about the connection of our business location,” Spohr told Bild am Sonntag. “The extremely increased state costs in air transport are leading to a further shrinking offer. More and more airlines are avoiding German airports or canceling important connections.”
The ailing Boeing Group is cutting around ten percent of its jobs. Boeing boss Kelly Ortberg did not give an exact number of jobs when making the announcement – but according to the latest information from the turn of the year, the aircraft manufacturer had a total of around 170,000 employees. The group also announced a write-off requirement of five billion dollars.