market report
After the sudden end to the record hunt, investors on the German stock market are acting cautiously. The DAX is likely to start a new stock market week cautiously, in which everything will revolve around monetary policy.
The signs on the German stock market continue to point to consolidation. After its price slide last Friday, the DAX is likely to initially stabilize at the beginning of the new stock market week. The broker IG estimates the German standard values to be almost unchanged at 18,182 points. Before the weekend, the DAX had fallen by 1.2 percent to 18,175 points.
The German stock market barometer has now moved a long way from its record high of 18,567 points, which was reached on the Tuesday after Easter. The technical picture in the DAX has deteriorated noticeably. Jörg Scherer, Head of Technical Analysis at HSBC, identifies an initial important support zone for the DAX between 17,900 and 18,039 points. If it slips below, the correction could extend.
Jürgen Molnar, capital market strategist at broker RoboMarkets, points to an open price gap at around 17,200 points – this would often be closed. But even in this case, the bull market would not be over, it would just have experienced a healthy break.
In fact, market observers had been warning of a correction for a long time and had pointed out that the market situation was “overbought” after the long run-up in prices. At the end of the week, investors had apparently found a good reason to take profits and initiate the long overdue consolidation.
According to Fed banker Kashkari, the US central bank could forgo interest rate cuts entirely this year. However, according to market experts, a failure to turn interest rates would be a “catastrophe” for the markets. After all, the recent rally on the stock markets was largely driven by the prospect that central banks could afford to lower key interest rates thanks to the significant drop in inflation.
Investors’ hopes are now turning to the European Central Bank (ECB), which will announce its monetary policy decisions on Thursday. The ECB is likely to leave interest rates unchanged again, wrote economist Marco Wagner from Commerzbank. However, there are likely to be further verbal indications of the impending interest rate turnaround. The market is currently expecting the European Central Bank to make its first interest rate move in June.
Positive guidelines for DAX trading come from Wall Street. The Dow Jones index of standard stocks closed 0.8 percent higher at 38,904 points on Friday. The broader S&P 500 advanced 1.1 percent to 5,204 points. The Nasdaq technology exchange index gained 1.2 percent to 16,248 positions.
According to the government’s official report, far more jobs were added to the US labor market in March than expected. However, investors in the US were focused on the fact that average hourly wage growth fell again, slowing inflationary pressures, experts said.
Prices also rose in Japan in the morning. In Tokyo, the Nikkei index, which includes 225 stocks, rose 0.7 percent to 39,282 points shortly before the close of trading. The Shanghai stock market is trending sideways at the moment.
The focus on the German stock market today is on TUI shares. The world’s largest travel group is returning to the Frankfurt stock exchange with the main listing of its shares. CEO Sebastian Ebel and CFO Mathias Kiep want to ring in the start of trading in the regulated Prime Standard in the morning with the traditional stock exchange bell. TUI moved its main listing to London at the end of 2014. The return to Frankfurt should now enable entry into the MDAX.
The pharmaceutical and agricultural chemical company Bayer has to pay significantly less than expected in a legal dispute over the weedkiller Roundup (glyphosate). Judge Daniel Green in Jefferson City, Missouri, reduced the damages awarded by a jury to the three plaintiffs from a total of $1.5 billion to $600 million, court documents showed Friday.
According to a newspaper report, the software manufacturer SAP is expected to cut 2,600 jobs in Germany as part of its announced major restructuring. A spokesman for the group did not comment on Saturday on the specific figure that emerged from a report in the “Handelsblatt”. So far there has only been talk of a total of 8,000 jobs being affected by the restructuring.
A Boeing 737-800 jet was forced to turn around in mid-air on Sunday after the crew reported that an engine cowling came off during takeoff and hit a wing flap. The Southwest Airlines plane returned safely to Denver International Airport after the incident, said the US Federal Aviation Administration (FAA). The incident is now being investigated.
Tesla wants to present its long-promised robotaxi on August 8th. Company boss Elon Musk announced the presentation on his online platform X on Friday. There were initially no further details. According to previous information, the autonomous vehicle will be based on a new technical platform that will make production more efficient and cost-effective.
The Facebook group Meta will leave more photos and videos with warnings created or manipulated by artificial intelligence on its platforms instead of deleting them. Meta wants to label corresponding content “Made with AI”. In-house technology will also be used, which will automatically recognize posts created with AI. The new rules should apply to Facebook, Instagram and the short message service Threads.