market report
During the night the wind on the global financial markets shifted again. Rising US yields are dampening risk sentiment. There are signs of a respite in the DAX after the recent price rally.
After the strong price rally of the past few days, the DAX is struggling to gain momentum in the morning. Slightly rising yields on US government bonds are dampening investors’ risk appetite. The broker IG currently estimates the German leading index to be only a few points below its XETRA closing price yesterday. The day before, the DAX had gained 0.9 percent to 15,748 points.
From a technical perspective, a respite after the sharp price rise of the previous days is neither surprising nor worrying. Even slight price declines can be constructive – as long as they occur within certain limits. When it comes to the DAX, the 200-day line is particularly important to pay attention to, as it is better not to fall below it.
This important indicator of the long-term trend is currently at just under 15,650 points. Yesterday, the DAX crossed the moving average of the past 200 trading days from bottom to top, thereby sending a buy signal.
There are cautious signals coming from the overseas stock markets for the DAX. A series of economic data had made US investors cautiously optimistic in the middle of the week. The Dow Jones index of standard stocks closed 0.5 percent higher at 34,991 points. The technology-heavy Nasdaq advanced 0.1 percent to 14,103 points. The broad S&P 500 gained 0.2 percent to 4,502 points. In the morning, however, US futures are trading a little lower again.
Buyers are rare on the Asian markets in the morning. The Shanghai stock exchange is currently 0.5 percent lower. The Japanese leading index Nikkei has just left trading with a loss of 0.3 percent to 33,424 points, but was able to stay above the much-noticed mark of 33,000 points that it had conquered just yesterday.
The dollar is showing some strength again this morning. At the same time, the euro fell slightly to $1.0838. The price of gold is rising slightly in early trading. The troy ounce of gold is currently trading at $1.964, 0.2 percent higher than the previous day.
Among the individual stocks in the DAX, the focus this morning is on Siemens shares. The group closed the last financial year with a record profit. After taxes, Siemens earned 8.5 billion euros – almost twice as much as in the same period last year. The interim recovery of Siemens Energy shares in the second quarter also resulted in a strong book profit for the parent company, which contributed to the current record.
According to insiders, the US pharmaceutical giant Lilly is about to make a billion-dollar investment in Germany. A new factory is planned in Rhineland-Palatinate, as the Reuters news agency learned from insiders. The company has invited people to a press conference in Berlin on Friday, which will also be attended by Vice Chancellor and Federal Minister of Economics Robert Habeck and Health Minister Karl Lauterbach.
Due to unexpected problems in its most important individual market, the USA, the meal kit mail order company Hellofresh has reduced its annual targets. Both sales and operating results are likely to be lower than previously expected, the MDAX-listed company surprisingly announced yesterday evening. However, the problems are only supposed to be temporary and not last into the new year.
Lower license income caused the biotech company Morphosys to experience a slump in sales in the third quarter. Revenues fell by a third to 63.8 million euros within a year. In the same period of the previous year, the company had benefited from significantly higher sales revenues from licenses due to a license agreement with the US biotech company HI-Bio.
The US network equipment manufacturer Cisco is lowering its annual forecast due to weaker demand. According to its own information on Wednesday, the company only expects sales of between 53.8 and 55.0 billion dollars and adjusted earnings per share of between 3.87 and 3.93 dollars for the full year. In the first quarter of the 2024 financial year, demand for its network equipment slowed, it said.
Tesla is facing increasing pressure from unions in Sweden over a strike at a supplier. The electric car manufacturer refuses to sign a collective agreement with the Swedish IF Metall. That’s why unions are boycotting the company. Tesla does not have a production facility in Sweden. However, its electric cars are serviced in workshops across the country. The strikes began there, which were also joined by dock workers and car dealers.
The US software company Microsoft wants to use its own chips for artificial intelligence (AI) in the future. The company presented its own AI chip that will be used to complete demanding tasks in the in-house Azure cloud. This joins the company in the list of large technology companies that are developing crucial technologies in-house due to the high costs of providing AI services.
Amazon has found a job for its household robot Astro, which was introduced two years ago. The small rolling machine with a camera and display is intended to patrol small and medium-sized businesses such as shops. Amazon has so far only sold the device in small quantities in the USA to private individuals for around $1,600 and described it primarily as a companion for the household and, for example, older family members.