Market report
Status: 07.01.2022 07:48 a.m.
Anyone who had hoped for a rapid countermovement after the recent price slide is mistaken. The hoped-for recovery in the DAX is unlikely to materialize for the time being. The reason for this is obvious.
The DAX is unlikely to start unchanged in the last trading day of the week. The broker IG rates the 40 German standard values at the hour slightly higher at 16,057 points. The day before, interest rate fears had caused the DAX to collapse by 1.4 percent to 16,052 points.
The background to the exchange rate losses was the minutes published in the middle of the week for the latest meeting of the US Federal Reserve. The so-called Fed minutes signaled that the Fed “could become even more restrictive than expected,” said market expert Robert Rethfeld from Wellenreiter-Invest.
DAX investors are waiting for the US labor market report
The rate hike path on which the market is speculating is now much more aggressive than it was a few weeks ago. According to the CME’s Fed Watch Tool, the likelihood of a first rate hike on March 16 rises to over 70 percent. The yield on trend-setting ten-year US Treasuries climbed to a nine-month high of 1.753 percent yesterday.
However, rising interest rates put a strain on the stock markets, making stocks less attractive compared to bonds. How quickly the Fed will advance on the rate hike path will also largely depend on the state of the US labor market. Investors are therefore eagerly awaiting the US labor market data (non-farm payrolls) for December due at 2:30 p.m. today.
Nikkei goes sideways into the weekend
There are no standardized specifications from the Asian stock exchanges in the morning. While the Japanese Nikkei index, comprising 225 values, has just left the weekend almost unchanged at 28,479 points, the Shanghai stock exchange is around 0.3 percent in the red.
Moderate losses on the Dow Jones, S&P and Nasdaq
US futures moved up slightly overnight. In regular trading on Wall Street, the major indices had posted moderate losses. The US standard value index Dow Jones went 0.5 percent lower to 36,236 points from trading. The technology-heavy Nasdaq was down 0.1 percent to 15,080 points. The broad S&P 500 also lost 0.1 percent to 4696 points.
Apple under pressure, bank stocks in demand
The downward pressure on Wall Street eased noticeably. On Wednesday, the market barometer had slipped by up to three percent. Yesterday, technology papers like Apple, Amazon or Microsoft were still on investors’ sales lists. The prospect of rising interest rates, on the other hand, boosted financial stocks like JPMorgan, Citigroup and Goldman Sachs.
Fears of interest rates weigh on the gold price
Speculation on a tighter monetary policy is meanwhile putting the gold price under pressure. The price of the troy ounce of gold continued to drop to $ 1,790 in the morning. Rising interest rates make gold less attractive as an asset class, as the yellow precious metal itself does not generate any interest or dividends. The euro posted a small gain to $ 1.1303.
Kazakh riots drive oil prices up
Oil prices continue to rise in the morning; the US WTI variety had already risen yesterday by a good two percent to $ 79.45 per barrel (159 liters). The unrest in Kazakhstan is an important price driver. “The country is currently producing 1.6 million barrels of oil per day,” said Commerzbank analyst Barbara Lambrecht.
Deutsche Bank is sticking to its annual targets
Deutsche Bank continues to expect to achieve its profitability and efficiency targets for the current year. CFO James von Moltke told the Handelsblatt that he was “very confident” that the bank would meet the requirements it had set itself. “The target return of eight percent is our north star, the central orientation for the entire bank and the entire renovation.”
BMW’s CES car changes color
BMW presented a car that can change color at the CES technology fair in Las Vegas. The electric vehicle, baptized with the model name iX, has a special casing that works in a similar way to the e-ink display of an e-book reader. This allows it to change between the colors white and dark gray. BMW spoke of a research and design project.
Samsung expects strong growth
The high demand for chips for data centers brought the electronics giant Samsung strong growth in the final quarter of 2021. The world market leader in memory chips, smartphones and televisions is anticipating an increase in operating profit of 52.5 percent to 13.8 trillion won (around 10.2 billion euros) and a record quarterly turnover.
New York Times takes over “The Athletic”
The US media group New York Times Company wants to strengthen its digital business with the purchase of the online sports magazine “The Athletic”. The publisher behind the traditional daily newspaper “New York Times” pays 550 million dollars in cash for the takeover. “The Athletic” was founded in 2016 and has so far followed a strict subscription model with a consistent payment barrier without advertisements.