market report
After the weak start to the week, there are signs of a clear counterreaction in the DAX. The German stock market barometer is preparing to more than make up for yesterday’s price losses.
After yesterday’s price losses, DAX investors are gaining new courage. The broker IG currently values German standard values 0.8 percent higher at 15,246 points. This would mean that the DAX would completely erase the damage from the beginning of the week. The day before, the German leading index had recorded a loss of 0.7 percent to 15,128 points, and at times it even fell to 15,077 points.
If the V-shaped recovery succeeds, the DAX would have further upward potential. From a technical perspective, however, only the recapture of the two-week high (15,515 points) and, above all, the 200-day line above 15,600 points would give the DAX the chance of a sustainable recovery.
Especially since proof that there is more to the early price gains than a technical countermovement has yet to be provided. From a fundamental perspective, many risks remain after Hamas’ major attack on Israel.
“It is still too early to assess the impact of events in the Middle East and what they mean for markets,” said JPMorgan’s Kerry Craig. “If the situation expands and more players are involved, it will of course have a greater impact on the markets.”
Investors should particularly keep an eye on the development of oil prices. Yesterday they made a huge leap upwards out of concern that Iran could now interrupt its oil deliveries in a kind of “solidarization action” with Hamas. In the morning, oil prices will come back a little – that will also let investors breathe a sigh of relief. The price for the North Sea Brent variety fell 0.6 percent to $87.73 per barrel.
“Much will depend on whether the conflict spreads and whether there are disruptions to oil supplies,” said Stuart Cole, chief macroeconomist at Equiti Capital.
The world’s leading stock exchange in New York also managed this risk well yesterday. Things continued to rise on Wall Street at the beginning of the week. The Dow Jones index of standard stocks ended trading 0.6 percent higher at 33,604 points. The technology-heavy Nasdaq advanced 0.4 percent to 13,484 points. The broad S&P 500 gained 0.6 percent to 4,335 points.
In Japan, the Nikkei returned from the holiday break this morning with significant price gains. The leading index, which includes 225 values, was 2.3 percent higher at 31,699 points. The Shanghai stock exchange, however, fell by 0.3 percent. The index of major companies in Shanghai and Shenzhen also fell 0.3 percent.
China’s largest private real estate developer Country Garden has again failed to make outstanding payments. The firm also warned this morning that it may not be able to meet all of its offshore payment obligations, weighing on the country’s struggling real estate sector.
Meanwhile, positive signals for the global stock markets are coming from the leadership of the US Federal Reserve. Federal Reserve Vice Chairman Philip Jefferson said yesterday that the Fed could “proceed cautiously” on the extent to which further tightening is needed. Most recently, the head of the San Francisco Fed District, Mary Daly, struck a similarly moderate tone. This gives hope that the Fed will pause interest rates again.
The dollar is showing strength again in Asian foreign exchange trading. At the same time, the euro fell 0.2 percent to $1.0561. The day before, the European common currency had fallen to $1.0521 as investors increasingly fled to safe havens such as the dollar or gold.
A troy ounce of gold costs $1,861 this morning. The yellow precious metal can therefore largely defend its recent strong price gains. The price of gold has risen by around $30 since Friday.
Airbus shares in the DAX could be worth a look today. The world’s largest aircraft manufacturer slightly increased the number of its deliveries in September. After 52 aircraft in August, 55 commercial jets were handed over to customers last month. As of the end of September, Airbus had delivered 488 aircraft. For the year as a whole, CEO Guillaume Faury is aiming for 720 units.
According to a newspaper report, the long-struggling car manufacturer Opel is growing strongly thanks to its electric cars. “Globally, we grew by twelve percent in sales this year,” Opel boss Florian Huettl told the newspaper “Augsburger Allgemeine” according to the preliminary report. The brand, which was taken over from the parent company Stellantis, has grown particularly in the home market of Germany.