Price gains in the DAX: lurking below the high for the year

market report

Status: 04/11/2023 12:52 p.m

After the long Easter weekend, the German stock market index DAX has once again approached its high for the year. But an important date in the middle of the week warns investors to exercise restraint.

After the long Easter weekend, positive signals from overseas drove the DAX towards its high since January 2022 at 15,737 points. In the USA, where trading had resumed the day before, the stock exchanges reacted to the labor market report published on Good Friday with slight price gains. Most Asian stock markets also followed Wall Street’s uptrend today.

Positive chart technique in the DAX

In Germany, the DAX rose by up to 0.8 percent to 15,726 points in early trading, but the price gains crumble as trading progresses. At lunchtime, the DAX was just below the 15,700 mark. According to the experts at Helaba, the DAX remains a “technical advantage” when looking at the chart.

According to HSBC analyst Jörg Scherer, there is a short-term option to continue the upward movement towards the 16,000 mark. Christoph Geyer, also a chart analyst and stock market expert, makes a similar statement, but also qualifies: “The seasonality indicates a further increase, the mood seems to be rather subdued.”

US inflation casts shadows

In fact, tomorrow’s publication of the US inflation rate for March urges investors to exercise caution. The development of consumer prices will determine whether the US Federal Reserve can afford to end its rate hike cycle as planned in the near future. In February, consumer prices in the US rose by 6.0 percent compared to the same month last year. The US inflation rate fell to its lowest level in more than a year.

Eurozone retail sales down

Fresh economic data from the eurozone, on the other hand, leaves investors largely cold. Eurozone retail sales fell in February. In a month-on-month comparison, they fell by 0.8 percent, as expected on the market. However, the increase in January, at a revised 0.8 percent, was stronger than initially determined. Previously, only an increase of 0.3 percent had been reported.

Wall Street gains again?

Wall Street should continue to climb today. The futures on the leading index Dow Jones and the market-wide S&P 500 are currently 0.2 percent higher each hour, the future on the technology-heavy Nasdaq 100 gains 0.3 percent.

Bitcoin above $30,000 for the first time since June 2022

The cryptocurrencies can benefit from the friendly mood on the financial markets. Bitcoin, the largest digital currency by market value, has climbed above the $30,000 mark for the first time since June last year. Since the interim low in autumn 2022, the price increase has now totaled more than 90 percent.

Oil prices on the rise

Oil prices are paying tribute to their recent recovery rally following the OPEC+ decision. The price of a barrel (159 liters) of North Sea Brent for delivery in June fell by 0.7 percent to $84.33 at lunchtime.

Euro and gold on the rise

The European common currency extended its early gains and reclaimed $1.09. One euro is currently trading at $1.0911. The troy ounce of gold can also continue to rise and costs 2002 dollars at noon.

Auto sector drives the DAX

In the DAX, shares from the automotive sector in particular are showing strength at lunchtime. Behind the leader Heidelberg Materials, there are five car stocks in the top spots: Continental, Mercedes-Benz, BMW, Volkswagen and the holding company Porsche SE.

The suppliers have recently registered the first increase in orders in eleven months, noted chief strategist Ulrich Stephan from Deutsche Bank. Meanwhile, manufacturers benefited from a persistently high order backlog. In China, the bottom could also be crossed shortly, where the car manufacturers in the DAX achieved an estimated third of their profits.

BMW sells fewer vehicles

The carmaker BMW sold slightly fewer vehicles in the first quarter than in the same period last year: From January to March, the BMW Group delivered 588,138 units, 1.5 percent fewer than in the first quarter of 2022. However, the car company expects slight growth for the year as a whole.

Delivery problems slow Airbus

Fragile supply chains will also slow Airbus down in the new year. The European aircraft manufacturer delivered 127 machines to customers in the first quarter, eleven percent fewer than a year earlier. Airbus actually wanted to increase the number of deliveries to up to 140 in order to cope with the increasing demand.

Audi starts regular operation for city fast chargers

The VW subsidiary Audi is expanding its network of high-speed charging stations in Germany. With the opening of a station with four charging points in the Friedrichshain district of Berlin, the manufacturer from Ingolstadt started regular operations in Germany on Friday.

ThyssenKrupp investors hope for bidding process for marine division

In the MDAX, ThyssenKrupp shares are going up because of renewed imagination about the marine division. A retailer rated media reports about an imminent decision on the future of the division as slightly positive. The bidding process for the division could possibly begin this week.

Adtran stock plummets

The shares of the US telecom supplier Adtran collapsed by almost ten percent. The mother of the German telecom equipment supplier Adva Optival clearly missed its own targets and expectations of the analysts in terms of both sales and profits in the first quarter. The group made an operating loss of up to around eight million dollars.

Asked Hellofresh for analyst praise

A sharp reversal in JPMorgan’s assessment of Hellofresh stock is pushing its price higher. The US investment bank increased the shares by two notches from “underweight” to “overweight”. Analyst Marcus Diebel wrote in a study that there is now hardly any impetus for share price losses.

Virgin Orbit is in danger of going offline on the Nasdaq

The US technology exchange Nasdaq wants to take Virgin Orbit out of trading, sending the shares of the space company down. The stock fell about 28 percent in premarket trading. According to Nasdaq, the shares and warrants are to be suspended from trading from April 13th. The reason is, among other things, the absence of the balance sheet for the past financial year. The company filed for bankruptcy in April.

Cineworld shareholders get nothing

The insolvent cinema chain Cineworld has filed a restructuring plan with the bankruptcy court in the US state of Texas. This does not provide for any repayment to its shareholders, said the world number two behind the US AMC Entertainment. Global business and cinemas would continue without interruption.

Hyundai is ramping up investments in electromobility

The carmaker Hyundai has announced higher investments in electromobility at the groundbreaking ceremony for the first electric car factory of its brand Kia. By 2030, the equivalent of around 16.6 billion euros should flow to the home base of South Korea. This is not only intended to finance the switch to electric cars at Hyundai, but also to promote the infrastructure for this throughout the country.

Fixed Apple service glitches

The iPhone manufacturer Apple claims to have fixed the disruptions in its online services such as Apple Music, Apple Music Radio, Apple News and iTunes Match. Apple said the problem was “solved”. The group did not give any reasons for the disruption.

US worried about Tesla deals in China

The United States is taking a closer look at the business relations between electric car manufacturer Tesla and China. “Tesla seems totally dependent on the generosity of the US government in terms of tax breaks and access to the Chinese market,” said Mike Gallagher, Republican chairman of the House of Representatives’ special committee on the Chinese Communist Party.

Tupperware stock plummets nearly 50 percent

The food storage container manufacturer Tupperware has come under heavy pressure due to liquidity concerns. After the company warned of acute cash shortages, the stock fell 49 percent on Wall Street yesterday to $1.2. The price fell to its lowest level since the record low at the beginning of the Corona crisis around three years ago.

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