market report
Investors should continue to exercise caution today. Only when the ambiguity about the future interest rate policy of the Fed and ECB has been resolved could things move forward again.
Before Xetra started, broker IG estimated the DAX a few points lower at 15,956 digits. After gaining more than 16,000 points before the weekend in the course of the settlement of the US debt dispute, the leading German index fell below the round mark again yesterday and closed 0.5 percent lighter at 15,964 points.
Currently, the question of the future interest rate policy of the central banks Fed and ECB remains the dominant topic on the stock market. “The tactical risk for equity investors going forward is that the US Federal Reserve actually misses a meeting and hikes rates in July rather than June,” said Dalma Capital’s Gary Dugan. The expert is optimistic for the future: “The growth momentum, the problem of the debt ceiling that has now been eliminated and a slowly moving Fed could trigger another stock rally.”
Uncertainty about future monetary policy is likely to keep the stock market volatile and data dependent, comments Konstantin Oldenburger, market analyst at CMC Markets. Against this background, current economic data continue to be the focus.
Today the German industrial orders are published. In the month under review, a strong increase should be recorded after March had surprised negatively with a very strong minus of 10.7 percent, the experts at Helaba determine. No significant data is coming out of the US today.
Because of the unclear prospects for US monetary policy, investors were reluctant to make further purchases on Wall Street. The US standard value index Dow Jones closed yesterday 0.6 percent lower at 33,562 points. The tech-heavy Nasdaq fell 0.1 percent to 13,229 points. The broad S&P 500 lost 0.2 percent to 4273 points.
In terms of individual stocks, the focus was on Apple shares, which ended trading down almost one percent. At the start of the WWDC developer conference, Apple titles had risen to a record high of $184.80. The stock market value of the electronics group thus approached the three trillion dollar mark. No company in the world is more valuable. Apple introduced its long-awaited smart glasses at the conference, the first new product category in nine years.
Recent bilateral talks between China and the US created a friendly atmosphere in Asia. Against the background of heightened tensions, both sides described the talks as constructive and agreed to keep the lines of communication open. The Japanese Nikkei was 0.4 percent higher at 32,351 points. The broader Topix index rose 0.2 percent to 2,224 points.
The Shanghai stock exchange was up 0.1 percent. The index of major companies in Shanghai and Shenzhen gained 0.2 percent.
The world’s largest semiconductor manufacturer TSMC sees problems with its plans to build a new plant in Dresden. At a shareholders’ meeting, TSMC’s head of the board of directors, Mark Liu, said negotiations with the German side were ongoing. The Taiwanese chip maker has concerns about certain issues, such as the supply chains in Germany and the availability of skilled workers. German students could be sent to Taiwan to train them in the relevant fields. It is also unclear how much government funding TSMC can get in Germany.