market report
The DAX should benefit from the strong US figures and continue its recovery at the start of trading. Technology stocks in particular were in demand in the USA, with the Nasdaq and S&P 500 reaching further records.
The broker IG estimates the DAX 0.4 percent higher at 18,149 points before the start of Xetra trading. Yesterday, the German leading index rose by 0.4 percent to 18,068 points. This means that it has at least stabilized again after the recent price losses. Last week, the DAX broke the upward trend that had been in place since October 2023.
In addition to political uncertainty in France and the discussion about a tariff dispute between the EU and China, the US Federal Reserve’s reluctance to cut interest rates is also preventing investors from taking greater risks.
Ulrich Stephan, chief investment strategist for private and corporate clients at Deutsche Bank, assesses the situation in France: “For the time being, fluctuations are likely to continue until it is clear which parties will form the new government and what agenda it will pursue. However, the stock market could recover quickly as soon as political uncertainty subsides, as was the case in Italy in 2022, when President Sergio Mattarella dissolved parliament on July 21 and called new elections on September 25.”
UBS market strategists believe the stock market is overreacting to the political risk posed by the new elections in France. They believe this offers opportunities, as the most likely outcome is a stalemate followed by compromises.
Yesterday, Wall Street continued its record-breaking run of the past few weeks. The driving force was once again the shares of the major technology companies. The Nasdaq 100 tech index had already reached another record high in early trading and continued to increase it. The broad market S&P 500 followed later with a record high. The Dow Jones Industrial, on the other hand, continued to lag behind.
The technology-heavy Nasdaq 100 rose to its fifth record high in a row. At the closing bell, the increase was 1.2 percent to 19,902 points. It only narrowly missed the 20,000 point mark. The S&P 500 advanced by 0.8 percent to 5,473 points. The Dow Jones rose more moderately by 0.5 percent to 38,778.10 points.
Driven by Wall Street, Asian markets are trending firmer today. In Tokyo, the 225-stock Nikkei gained 1.1 percent to 38,504 points, while the broader Topix was 0.7 percent higher at 2,719 points. “The Nikkei fell more than expected last session, so investors bought back shares,” said Seiichi Suzuki, equity analyst at information service provider Tokai Tokyo Intelligence Laboratory. “But the market is currently seeing neither good news that could push the index further up nor bad news that could push it further down.”
The Shanghai Stock Exchange recorded an increase of 0.3 percent to 3,026 points. The index of the most important companies in Shanghai and Shenzhen gained 0.2 percent to 3,544 points. In Hong Kong, the announcement that trading on the stock exchange will continue from September 23, even in the event of typhoons and heavy rain, was received positively: the Hong Kong Hang Seng Index rose by 0.14 percent.
Boeing CEO Dave Calhoun will have to answer questions from US senators on Tuesday (from 8 p.m. CEST). He has been summoned to a hearing in the subcommittee for investigations. A Boeing whistleblower recently testified there, accusing the company of production errors in the 787 Dreamliner model. Boeing denies the allegations. The aircraft manufacturer is under increased pressure to improve quality controls after a near-accident in early January. A fuselage section broke off shortly after takeoff on a nearly new Boeing 737-9 Max aircraft with more than 170 people on board.