market report
Status: 01/27/2022 07:42 a.m
The US Federal Reserve failed to reassure investors. Yesterday’s price gains are likely to be wiped out in one fell swoop today. The DAX is threatened with the next sell-off.
Yesterday, the German standard values were still strong with a plus of 2.2 percent after the price slide at the beginning of the week. But this upward correction should come to an abrupt end today. Banks and brokers rate the DAX 2.2 percent lower at 15,112 points.
Technically, the DAX has suffered massively
The leading German index should therefore start XETRA trading with a large downward price gap near its closing price on Tuesday (15,124 points). As a result, the technical picture in the DAX continues to deteriorate.
At the beginning of the week, the German stock market barometer sent a technical sell signal when it slipped below the 200-day line. Investors now have to reckon with another slide towards the 15,000 point mark.
Fed leaves a lot of room for speculation
The background to this recent fall in the DAX is yesterday’s meeting of the US Federal Reserve (Fed). The Fed had given a clear signal for an initial interest rate hike in March. That was also expected on the market. The central bankers led by Jerome Powell have also published the principles for reducing the Fed’s total assets. Here they were far less specific.
“This expresses the uncertainty that the Fed is also facing in view of the difficulty in planning the Omicron growth risk. The speculation in the market about the speed and extent of the balance sheet reduction will not stop for the time being,” comments analyst Jochen Stanzl from CMC Markets.
Dow Jones fails to hold onto profits
Christian Scherrmann, US economist at asset manager DWS, believes that upward risks from interest rate hikes cannot be ruled out. Powell had been quite “hawkish” in this regard: There was “quite a lot of room” for tightening without jeopardizing the recovery in the labor market.
The US standard value index Dow Jones was unable to maintain its initial gains and closed 0.4 percent lower at 34,168 points. The broad S&P 500 lost 0.1 percent to 4349 points.
Microsoft helps stabilize the Nasdaq 100
Meanwhile, the software giant Microsoft contributed to the stabilization of the technology values with strong figures and a price jump. The Nasdaq 100, which is characterized by this industry, was able to save a small profit in the final chord. After a peak increase of more than three percent, it was 0.2 percent higher at 14,173 points at the close of trading.
After an increase of over seven percent at times, the Microsoft share itself was still able to save an increase of 2.9 percent over the finish line in view of the market turbulence after the Fed meeting.
Nikkei closes deep in the red
Asian stocks fell to their lowest level in more than 14 months on the morning of the Fed’s monetary policy statements and negative guidance from US stock markets. The Nikkei Index, which comprises 225 stocks, was 3.1 percent lower at 26,170 points at the close of trading. The Shanghai stock exchange is currently down 1.1 percent.
Dollar up, gold under pressure
The dollar has received a powerful boost since the Fed meeting. The prospect of US monetary tightening has given the greenback a boost. In return, the European common currency has given way significantly. In the morning, one euro costs 1.1219 dollars. The stronger dollar weighs on the price of gold. An ounce of gold costs $1,813, down 0.5 percent from the previous day.
Deutsche Bank with billions in profit
Deutsche Bank ended 2021 with a net profit for the second straight year after a series of losses. The bottom line was a profit of 1.94 billion euros after 113 million euros a year ago – the best result since 2011. The expectations of the analysts were thus clearly exceeded. After a long dry spell, shareholders are to receive a dividend again. They were promised 20 cents per share for 2021.
Tesla makes record profit
Despite the global chip crisis and problems in the supply chains, the US electric car manufacturer Tesla earned more in 2021 than ever before in a financial year. The bottom line is that the group posted a profit of 5.5 billion dollars on Wednesday, 665 percent more than in the previous year. Revenue climbed 71 percent to $53.8 billion, Tesla said after the US stock market closed.
Intel with record sales
Despite delivery problems around the globe, Intel achieved record sales in the final quarter. Sales rose from October to December compared to the previous year by four percent to 19.5 billion dollars, as announced by the largest chip company in the US after the US stock market closed. Analysts had expected an average of only $ 18.3 billion. Earnings per share, on the other hand, fell to $1.09 from $1.48. But here, too, Intel was able to exceed market expectations.