Market report: Slight tailwind for the DAX

market report

As of: February 12, 2024 8:16 a.m

The DAX is likely to start with slight gains on Rose Monday, but miss the 17,000 mark. Wall Street’s guidelines from Friday are supportive, but there is no trading in China and Japan.

The broker IG estimates the German leading index 0.2 percent higher to 16,960 points before the Xetra launch. Last Friday, the DAX once again failed to break above 17,000 points: at the close of trading, the leading German index was 0.2 percent lower at 16,926.50 points.

According to Martin Utschneider, technical analyst at Finanzethos, the DAX is currently “stuck” at record levels. The resistance would be between 17,005 and the record high just below 17,050 points. On the underside there is a “notable chart-technical recovery line” just below 16,800 points. In general, “patience is still required in the current situation,” said Utschneider.

“The DAX continues to struggle at the 17,000 mark,” commented Konstantin Oldenburger, analyst at broker CMC Markets. “There is simply a lack of catalysts or positive news that would encourage the outbreak. At the moment it feels more like investors are fed up and exhausted. The time for a break seems to have come.”

The next important date for investors will be tomorrow, Tuesday, when inflation figures for January are published in the USA. Investors hope that this will provide more clarity about the development of consumer prices, which is important for the future monetary policy of the Federal Reserve.

The central bankers are trying to use increased interest rates to bring inflation down from 3.4 percent to their target of two percent without strangling the economy. Strong economic data and statements from Fed officials in recent weeks have dampened traders’ hopes for a first rate cut in March. “In view of these strong interest rate cut expectations in the market, the inflation data is even more important than usual,” comment the Helaba experts.

Price gains in technology stocks had largely pushed Wall Street into positive territory at the end of the week on Friday. The broad S&P 500 jumped above the 5,000 point mark for the first time and was 0.4 percent stronger at 5,018 points. The Nasdaq technology exchange index advanced 1.1 percent to 15,971 positions. The Dow Jones index of standard stocks was slightly in the red at 38,645 points. There is no holiday trading today in either China or Japan.

The exchange rate of the euro has moved little so far today. In the morning, the common currency was trading at $1.0791, roughly the same rate as on Friday evening. The European Central Bank (ECB) last set the reference rate at $1.0772 on Friday afternoon.

Market observers spoke of a slow start to the week on the foreign exchange market. During the course of the day there is hardly any important economic data on the agenda that investors could use as a guide. However, appearances by a number of members of the US Federal Reserve and the ECB are expected, which could cause more price movement. Among other things, statements from ECB chief economist Philip Lane are expected.

At the Tesla factory in Grünheide near Berlin, production is scheduled to resume completely today after a production stop due to missing parts as a result of the situation in the Red Sea. The supply chains are intact again and all necessary production parts are sufficiently available, the company said. The electric car manufacturer suspended vehicle production for almost two weeks on January 29th due to attacks on ships by the Yemeni Houthi militia.

Shortly before the departure of co-founder Hasso Plattner from the supervisory board, SAP replaced the designated successor. Instead of Punit Renjen, who was nominated a year ago, the former head of mobile communications equipment manufacturer Nokia, Pekka Ala-Pietilä, will be proposed for election to the general meeting, Europe’s largest software house announced on Sunday. He should also take over the chairmanship of the control committee. SAP and Renjen, who will resign from his supervisory board mandate, separated by mutual agreement. “The reason was the different ideas about the role as the future chairman of the supervisory board.”

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