market report
Status: 05/13/2022 08:14 a.m
Experts expect that the DAX will start the last trading day of the week with a solid premium. Apparently, investors are slowly beginning to digest the interest rate and inflation shock.
According to calculations by the broker IG, the DAX should start with an increase of around one percent to 13,883 points. In the course of the week it had dropped to 13,380 points at times. But the experts at Helaba warn: “The environment remains difficult and recoveries should be understood as corrections to an intact downward trend.”
Yesterday, the leading German index went out of trading with a discount of 0.6 percent to 13,739.64 points. Stock markets were still reeling from the aftermath of a disappointingly modest decline in US inflation, said Rabobank investment strategist Lyn Graham-Taylor. The US Federal Reserve is determined to fight inflation. At the same time, the chance of a “soft landing” in the economy is low. “Overall, the prospects for the economy are deteriorating,” is the expert’s assessment.
Positive conclusion of the reporting season
Meanwhile, the experts at the investment bank JPMorgan draw quite a positive conclusion as the end of the reporting season approaches – both for the USA and for Europe. Equity market strategist Mislav Matejka noted that the proportion of companies with positive surprises has increased this quarter. Market expectations therefore rose across the board. It is interesting that US companies with negative surprises are currently being penalized less than in the past.
Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank, is also satisfied. The DAX companies had presented solid business results: “On average, the sales achieved were three percent above expectations, the profits were almost ten percent higher.”
Asia on course for recovery
The fear of drastic interest rate hikes by the Fed again caused a relatively weak Wall Street in the USA yesterday. The Dow Jones closed 0.3 percent lower at 31,730 points. The tech-heavy Nasdaq, on the other hand, advanced 0.1 percent to 11,370 points. The broad S&P 500 lost 0.1 percent to 3930 points.
In Asia, on the other hand, the Japanese stock exchanges are also starting a small recovery rally: the Nikkei was 2.6 percent higher at 26,422 points. The Topix rose 1.9 percent to 1865 points. The Shanghai stock exchange was up 0.4 percent. The index of major companies in Shanghai and Shenzhen gained 0.2 percent.
Increase in sales at Telekom
In the first quarter, Deutsche Telekom’s revenue increased by 6.2 percent to a good 28 billion euros. Europe’s largest telecom group benefited from its service revenues, which grew at a disproportionately high rate. At 2.2 billion euros, net profit was almost twice as high as a year ago.
Impetus for Deutsche Euroshop
The real estate group Deutsche Euroshop, which specializes in shopping centers, benefited from the easing of corona restrictions in the first quarter. While sales in the first quarter increased by only 0.3 percent year-on-year to 52.1 million euros, earnings before interest and taxes (EBIT) rose by almost a quarter to 39.3 million euros, as significantly lower valuation allowances on rent receivables were made became. The bottom line is that profits increased by almost ten percent to 24.5 million euros.
Ceconomy returns to growth path
The electronics retailer Ceconomy also benefited from the recovery of its stationary business in the second quarter of the 2021/22 financial year. Sales rose from 4.3 billion to five billion euros, as the holding company of the two chains Media Markt and Saturn announced. Adjusted for currency and portfolio effects, this was growth of 18.8 percent. Corona-related store closures had led to a decline in the first quarter. The operating loss (EBIT) adjusted for special effects fell from 146 million euros to 62 million euros.
Vitesco gets many orders in the electrical division
Auto parts supplier Vitesco is making good progress collecting orders for its electric drive division. In the first quarter, orders for electrical components, at just under EUR 3.7 billion, accounted for the lion’s share of the EUR 4.5 billion in orders received. The division for e-drives still has relatively low sales at the company spun off from the automotive supplier Continental and is still in the red, but should be the mainstay in the future.