Market report
Status: 01.12.2021 07:28 a.m.
After the setbacks of the past trading days, the German stock market index is likely to pick up again in the middle of the week. The DAX is thus defying weak targets from the USA.
The 15,000 point mark, which was still in jeopardy yesterday, appears to hold on the first day of trading in December. According to pre-market indications, the leading index should start at 15,250 points and thus create an increase of around one percent.
At first glance, the specifications from Wall Street are anything but cheap. The Dow Jones index closed in New York 1.9 percent lower at 34,483 points. The technology-heavy Nasdaq was down 1.6 percent to 15,537 points. The broad S&P 500 lost 1.9 percent to 4567 points. A warning from the vaccine manufacturer Moderna that its vaccine against the Omikron variant would be less effective resulted in sales on the market.
The US Federal Reserve could brake faster
There were also statements by the head of the US Federal Reserve, Jerome Powell. This warned before a committee of the US Congress against a persistently higher inflation in the USA. The central bank will use its instruments to cool prices. A reduction in bond purchases could therefore be considered earlier than decided. This could also bring a turnaround in interest rates, according to fears on the market.
Merck drug on the finish line
More positive news came in the late evening after the US market closed. An advisory body to the US FDA has recommended emergency approval for a corona drug from the US pharmaceutical company Merck. The members of the committee voted for this on Tuesday after hours of discussion. The result of the vote is not binding for the FDA, but the authority usually follows the assessment of the consultant. Emergency approval from the FDA could now follow within a few days. Merck had announced that a clinical study found that the drug administered as a tablet reduced the likelihood of very severe disease in high-risk patients.
Asia stock exchanges in the plus
Despite the difficult situation, the stock exchanges in Asia turned positive again in the morning. The Nikkei index comprising 225 values closed 0.4 percent higher at 27,936 points. The broader Topix index rose 0.7 percent and stood at 1942 points. The Shanghai stock exchange was 0.1 percent higher.
China data weak
In the morning, the economic data from China were rather disappointing. The purchasing managers’ index (PMI) calculated by the Chinese business magazine “Caixin” fell from 50.6 to 49.9 points in November. Experts had expected a stable value. While values above 50 indicate an expansion in economic activity, a decline below this is assumed. The purchasing managers’ index published by the state statistics office the day before was better in comparison.
Euro continues to rise
The euro is moving further away from its lows of the past few days. The common currency costs 1.1340 dollars in the morning, around one cent more than at the beginning of the week. Commodity prices are also recovering: a barrel of North Sea Brent costs $ 71.50 in the morning, an increase of 3.5 percent. The price for the troy ounce of gold is currently 1791 dollars.
Daimler dismisses trucks
Today, the DAX focuses on a car stock: the Daimler car group is split into a car and a truck manufacturer. To this end, the previous Daimler Truck division with over 100,000 employees worldwide will be separated from the group and released into entrepreneurial independence. The project has been intensively prepared for months. The automaker’s shareholders gave the go-ahead at the beginning of October. Daimler Truck plans to go public on December 10th.
Salesforce with a bleak outlook
In the software industry, too, there is movement in the morning. In the evening, SAP competitor Salesforce exceeded expectations with its business figures for the third quarter, but disappointed investors with a cautious outlook. After the US market closed yesterday, Salesforce announced revenues of approximately $ 7.2 billion for the fourth fiscal quarter to the end of January. The share reacted after the trading day with a price loss of more than six percent. In the three months to the end of October, the group increased revenues by 27 percent to $ 6.86 billion. Net income was $ 468 million.
Adler sells daughter to LEG
The real estate group Adler Group is to sell its subsidiary Brack Capital Properties (BCP) to competitor LEG Immobilien. This has already secured almost 31 percent for 328 million euros, as the two companies announced. LEG has also secured an option for a further 63 percent of the BCP shares in the Adler Group. LEG will pay at least 765 million euros for this if exercised. The Adler Group recently announced the sale of subsidiaries and real estate in order to improve its finances.
TUI with a botched cruise restart
The share of the travel group TUI has recently been under constant pressure. The arrival of a TUI cruise ship in Cape Town was to be celebrated yesterday as the start of the season after an almost 20 month ban on berthing in South Africa. But the appearance of the Omicron virus variant thwarted the plan. The TUI ship was en route from Luderitz in Namibia to Cape Town with hundreds of guests on board. Some passengers disembarked to fly straight home, said Wrenelle Stander, head of the tourism, trade and investment agency for the Western Cape region of South Africa. The others stayed on board for the return journey by ship.