market report
Status: 03/30/2023 07:42 a.m
The DAX has passed the key zone at 15,300 points. This fuels hopes of subsequent profits on the German stock market. According to experts, it could go up another 800 points.
On the German stock market, the signs continue to point to price gains. The broker IG currently rates the DAX 0.3 percent higher at 15,370 points. The German stock exchange barometer would thus continue its recent upward trend. Since closing the week at 14,957 points last Friday, the DAX has already gained 2.5 percent.
Is there anything else going on in the DAX?
From a technical perspective, there’s even more to it. After all, the leading German index surpassed the important resistance zone at 15,300 points yesterday and thus also its all-time high of the previous week. As a result, the DAX has completed a small bottom formation – and thus laid the basis for further price gains.
Because now there is a so-called inverse shoulder-head-shoulders formation in the DAX chart, as Jörg Scherer, Head of Technical Analysis at HSBC, emphasizes. The expert puts the calculated connection potential at 800 points.
Asia stock markets in the red
However, the Asian stock markets are providing mixed signals. Although investors there were also able to shake off their worries about the banking sector, after the recent banking turmoil, uncertainty about the forthcoming rate hikes by the central banks is growing: Does the Fed possibly have to end its rate hike cycle earlier to avoid further destabilization of the financial industry?
The Nikkei index, which comprises 225 stocks, is 0.8 percent lower shortly before the close in Tokyo. The Shanghai stock exchange is down 0.3 percent. The index of the most important companies in Shanghai and Shenzhen also lost 0.3 percent.
AI boost on Wall Street
Meanwhile, positive guidelines for DAX trading are coming from the US stock exchanges. Good business prospects for chip manufacturers and an easing in the banking sector lured investors in the US back into equities yesterday. The Dow Jones index of standard values closed one percent higher at 32,717 points. The broad S&P 500 gained 1.4 percent to 4027 points. The tech-heavy Nasdaq advanced 1.8 percent to 11,926 points.
Micron fuels tech optimism
Shares in memory chipmaker Micron and its rivals rose as investors bet that artificial intelligence products would boost demand. Micron forecast a record year for the memory chip industry in terms of market size in 2025.
Inflation rate – hoping for the base effect
Investors in Germany are now eagerly awaiting the publication of the German inflation rate in March. The Federal Statistical Office will announce its first estimate this afternoon at 2 p.m. On average, economists expect the annual inflation rate to fall to 7.3 percent.
In March, the inflation rate in Germany is likely to fall significantly due to a base effect,” explained the Deutsche Bundesbank recently in its monthly report. Because now the current prices are compared with the sharply increased level of spring.
Investors lose interest in gold
In the run-up to the important data release, the euro shows little movement. The European common currency is currently trending sideways at $1.0839. A troy ounce of gold is worth 1961 dollars in the morning. The yellow precious metal has been less in demand among investors since the bank turbulence abated, after it temporarily rose above the $ 2,000 mark in the previous week.
VW rejects agreement on slave labor in Brazil
In the DAX, the focus is on the VW share in the morning. Volkswagen do Brasil walked out of the negotiating table in a hearing over possible slave labor at a subsidiary’s Amazon farm in the 1970s and 80s, according to Brazilian prosecutors. The company has declared that it has no interest in an agreement with the prosecuting authority responsible for labor law, according to a statement from the authority in Brasília.
SMA Solar raises forecast
After a surprisingly strong start to the new year, the solar technology group SMA Solar is raising its forecast for 2023. The Executive Board now expects annual sales of EUR 1.45 to 1.6 billion. So far, the management had promised 1.35 to 1.5 billion euros. SMA raised its forecast for earnings before interest, taxes, depreciation and amortization (EBITDA) from EUR 100 to 140 million to EUR 135 to 175 million.
Ionos newcomer to the stock market with a drop in earnings
Increased costs for energy and marketing caused the web hosting and cloud provider Ionos to experience a decline in earnings last year. The adjusted operating result fell by 2.7 percent to 345.6 million euros in 2022. The web host went public in February. So far, the share has not managed to exceed the issue price of EUR 18.50.
Is Apple going into the VR glasses business?
Apple has scheduled this year’s WWDC developer conference for June 5-9. Among other things, the financial service Bloomberg reported that Apple wants to announce glasses for displaying virtual reality (VR), which will be launched a few months later. The WWDC announcement image appropriately resembles a lens.