market report
Take a breath after the gains of the past trading days: The DAX is likely to start today at yesterday’s closing level. Wall Street closed only slightly higher, and many investors are currently waiting with bated breath.
The leading German index is likely to start XETRA trading at around 15,340 points, as the pre-market signals currently indicate. This would mean that the DAX would be almost exactly at the level of yesterday’s closing level; the day before, the index had increased by 0.7 percent to 15,345 points.
The US stock markets only posted small gains in the evening after the latest rally. The Dow Jones index of standard stocks closed 0.2 percent higher at 34,337 points. The technology-heavy Nasdaq, on the other hand, fell 0.2 percent to 13,767 points. The broad S&P 500 lost 0.1 percent to 4,411 points.
The market is eagerly awaiting the US inflation data for October, which will be published this afternoon, in order to draw conclusions for the US Federal Reserve’s further interest rate policy. “If the numbers continue to decline year-over-year, then that cements the fact that the Fed will not hike in December and is most likely done with the hike campaign,” said Peter Cardillo, chief economist at Spartan Capital Securities.
In Asia, too, the stock markets did not find a clear direction this morning. The Shanghai stock exchange gained 0.1 percent. The index of major companies in Shanghai and Shenzhen stalled. The Japanese Nikkei index, however, closed 0.3 percent higher at 32,696 points.
US consumer prices are also likely to cause movement on the foreign exchange market over the course of the day. The euro is currently trading at $1.0695, just below the $1.07 mark. There are also currently no major movements on the raw materials market. North Sea Brent crude oil is trading slightly higher at $82.25. As yesterday, a troy ounce of gold costs around $1,945.
On the German stock market, a number of quarterly balance sheets from companies in the DAX and the small cap indices are likely to cause price movements over the course of the day. The energy company RWE presented its business figures this morning. RWE increased its profit in the first nine months. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) climbed from January to the end of September to 6.15 billion euros from the previous 3.4 billion euros. Higher income from electricity generation and energy trading in particular contributed to this. RWE also confirmed its annual profit forecast.
The defense supplier Hensoldt says it is about to take over the military service provider ESG. Hensoldt is “in exclusive negotiations regarding the acquisition of this manufacturer-independent system integrator and technology and innovation partner for defense and public safety,” with a deal expected by early December. To finance the purchase, Hensoldt is preparing a capital increase of up to ten percent, in which the federal government would contribute a quarter – depending on its shareholding in Hensoldt. At the current rate, this could bring in around 280 million euros.
Despite the crisis on the real estate market, Deutsche Pfandbriefbank is sticking to its plans for new business this year. CEO Andreas Arndt continues to expect a new business volume of between 6.5 and 8 billion euros, as the commercial real estate financier announced when presenting the final quarterly figures. He had already canceled this forecast in the summer. In the first nine months, new business totaled just 4.2 billion euros, compared to 6.6 billion in the same period last year.
After the XETRA close yesterday, real estate investor Patrizia from the SDAX confirmed its lowered earnings forecast in July. After nine months, earnings before taxes, interest, depreciation and amortization (Ebitda) of 50.2 (previous year’s figure: 78.8) million euros were achieved. This means that the lower end of the forecast range for the full year of 50 to 70 million euros has already been reached. The real estate and infrastructure assets under management remained almost unchanged at 58 (59.1) billion euros.
MDAX company TAG Immobilien is again not planning to pay a dividend for the current financial year. The liquidity remaining in the company should instead be used to strengthen the capital base, TAG said in the evening. It will also be used to finance new projects in Poland, both in the sales and rental business. The share had already slipped by almost five percent after trading yesterday compared to the XETRA closing price.