Market report: US debt dispute paralyzes DAX investors | tagesschau.de


market report

Status: 05/23/2023 07:49 a.m

There is still no breakthrough between the White House and Republicans in the US debt dispute. This weighs on the German stock market, the DAX should start the race almost unchanged.

Concerns about a possible US payment default are dampening the buying mood of investors on the German stock market. The broker IG estimates the leading German index about two points lower at 16,220 points one and a half hours before the start. The record high of 16,332 points from last Friday remains within reach.

From a technical perspective, the DAX now has further upward potential, as the leading German index sent one of the best buy signals that technical analysis has to offer by marking an all-time high. However, a new trend impetus can probably only be expected once an agreement has been reached in the US in the debt dispute.

But a breakthrough in the muddled negotiations between Republicans and Democrats is still not in sight. Even though the Republican Chairman of the US House of Representatives, Kevin McCarthy, spoke of a positive course of talks after a top-level meeting in the White House with US President Joe Biden yesterday. The very short deadline for a possible compromise is also causing nervousness among investors – US Treasury Secretary Janet Yellen had declared June 1st as a “tough deadline”.

According to experts, if a US payment default were to occur, this would throw the world economy into severe turbulence due to a global financial crisis. Both sides have repeatedly stressed that they want to avoid such a catastrophic scenario. The US stock exchanges could not agree on a direction in the evening. The Dow Jones lost 0.4 percent to 33,287 points. The tech-heavy Nasdaq, meanwhile, advanced 0.5 percent to 12,721 points, while the broad-based S&P 500 closed little changed at 4,193 points.

There is also no real buying mood on the Asian stock exchanges tomorrow. The Nikkei index, which comprises 225 stocks, is down 0.5 percent shortly before the close of trading in Tokyo. In the course of trading, the leading Japanese index had reached a level of 31,352 points for the first time since August 1990. The Shanghai stock exchange was down 0.6 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.5 percent.

The euro is trading sideways at $1.0809 in early trade. In the further course of trading, the publication of the purchasing managers’ indices for manufacturing and services in May for Germany and the euro zone could still cause some movement. The price of a troy ounce of gold is currently down 0.3 percent to $1964.

In the DAX, the focus is on the T-Share in the morning. Deutsche Telekom has rejected criticism of its fiber optic expansion plans. “We build for our customers and the people in the country, not against the competition,” said company spokeswoman Stefanie Halle. The company responded to criticism from the Schleswig-Holstein State Secretary for Economic Affairs Julia Carstens (CDU) about the laying of a second fiber optic network in places where there is already one.

The Frankfurt airport operator Fraport is again holding its Annual General Meeting today (09:00 a.m.) via video conference. In his previously published speech, CEO Stefan Schulte pointed out the strong development of foreign activities, which are recovering faster after the corona shock than the domestic hub. In Frankfurt, the focus is on the new construction of the third terminal and the modernization of the existing terminal building.

The plant manufacturer Thyssenkrupp Nucera has received a major order to build electrolysers for a planned steel works in northern Sweden. They are to produce hydrogen for the company H2 Green Steel in Swedish soil. The heart of the steelworks is a so-called direct reduction plant. In it, hydrogen produced in a climate-neutral manner replaces the coal and coke used in classic blast furnaces to extract oxygen from the iron ore.

After about a year, the previous shareholders of the Wiesbaden-based Aareal Bank, which was sold to financial investors, will receive their money in June. After the approval of the European Central Bank (ECB), all approvals from the supervisory authorities are now available, the bidding consortium announced yesterday. The financial investors Advent and Centerbridge and the Canadian pension fund CPPIB secured a majority stake in the real estate financier in May 2022 with a bid of EUR 33 per share.

According to circles, the owners of the German energy service provider Techem want to list or sell the meter provider in a multi-billion deal. A consortium led by the financial investor Partners Group is aiming for a valuation of the Eschborn company – including debts – of up to eight billion euros, the Bloomberg news agency reported in the evening, citing people familiar with the matter.

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