market report
The DAX is getting a little pre-Christmas tailwind from the USA this morning. The hope of interest rate cuts soon has given the indices in New York another plus. However, the stock market rally is slowly fading.
Pre-market indications suggest that the leading German index is likely to start XETRA trading in the morning at 16,675 points. That would be an increase of 0.2 percent, although it would not be enough to offset yesterday’s losses of 0.6 percent.
Above all, the continued strong stock exchanges on Wall Street are helping trading in Germany. The prospect of interest rates falling again next year drove the Dow Jones index to 37,393 points yesterday, reaching an all-time high for the fourth time in a row. However, the index closed only 0.1 percent higher at 37,326 points. The broader S&P 500 and the Nasdaq technology exchange index each rose by 0.6 percent to 4,747 and 14,901 points respectively.
However, it remains to be seen whether key interest rates in the USA will actually be reduced quickly. Statements again came from the ranks of the US Federal Reserve Bank that somewhat dampened investors’ optimism. Loretta Mester, the regional Fed chief in Cleveland, told the Financial Times that current interest rate expectations in the markets are somewhat premature.
In Japan, stock prices also rise in the morning. The Nikkei index closed 1.4 percent higher at 33,219 points. The broader Topix index rose 0.3 percent to 2,324 points. The markets reacted to signals from the central bank, the Bank of Japan (BoJ). It sees no signs of an end to its ultra-loose monetary policy any time soon: “There is extremely high uncertainty regarding the Japanese economy and prices,” said the BOJ.
On the foreign exchange market, the euro remains well below the $1.10 mark. In the morning, the European common currency was trading at $1.0925. Last week, the euro received a significant boost from hopes of interest rate cuts in the USA.
There is little movement on the raw materials market in the morning. A barrel of North Sea Brent oil costs $78.10, almost as much as yesterday. The gold price is currently trending slightly weaker at $2,023 per troy ounce.
Covestro shares could be the focus of investor interest on the German stock market. According to a media report, the oil company Adnoc from the Emirate of Abu Dhabi is increasing its takeover offer for the Leverkusen-based plastics company. Adnoc now wants to offer 60 euros per Covestro share, according to Bloomberg, citing insiders. The new bid would value Covestro at around 11.3 billion euros. The oil giant wants to submit the offer in the coming days. Adnoc also wants to guarantee job guarantees for several years and investments of around eight billion dollars.
The Siemens Group is transferring almost a third of its remaining shares to Siemens Energy to its employees’ pension fund. Eight percent of Siemens Energy AG was sold to Siemens Pension-Trust e. V. has been transferred, according to the company. This means the group’s shareholding in Siemens Energy will fall to 17.1 percent. Most recently, in June, Siemens contributed 6.8 percent of the former division, which was spun off and listed on the stock exchange, to the independently managed pension assets. Siemens Energy has massive problems with the Spanish wind power subsidiary Gamesa and needs government guarantees worth billions.
Apple will suspend sales of new models of its computer watch in the US after losing a patent case. The Apple Watch Series 9 and Apple Watch Ultra 2 will no longer be sold on the company’s American website from December 21st and will not be sold in US stores after December 24th. This is a precautionary measure in view of the review deadline expiring in a week, Apple announced on Monday. The medical technology company Masimo accuses Apple of using its patented technology to measure oxygen levels in the blood in its watches without a license.