market report
As of: 10/28/2022 7:44 a.m
Thanks to the ECB, the DAX got the curve again yesterday. But this morning there was a lack of follow-up buyers. This should also be due to new disappointments from the US tech sector.
The ECB rally in the DAX has fizzled out. Yesterday, the rather dovish-sounding currency guardians around Christine Lagarde raised the stock market barometer by almost 200 points from its daily low of 13,062 points and thus back into the plus zone.
Overriding downward trend in the DAX still intact
But the leading German index cannot match this performance this morning. The broker IG assesses the German standard values 0.8 percent lower at 13,109 points. Despite an impressive 1,300-point rally since its September low of 11,867 points, the DAX has so far failed to regain its year-to-date downward trend.
The most recent price gains were therefore no more than a counter-movement within the overriding downward trend. The DAX has reached a resistance zone, the air for further gains is getting thinner, warned Jürgen Molnar, capital market strategist at RoboMarkets.
Amazon scares investors, share collapses
In fact, there is also a lack of fundamental data that could support an upward movement. In particular, the tech reporting season in the USA has so far caused disappointments. Yesterday evening, after the US stock market closed, the next bang followed: e-commerce giant Amazon announced sales of 140 to 148 billion dollars for the current Christmas quarter.
So far, analysts have hoped for around 155 billion. At the same time, the company warned of a possible profit slump due to rising costs. Amazon shares fell 19 percent in after-hours trading in the US, the sharpest since a good 16 years ago.
Apple disappointed in iPhone sales
According to experts, Apple is currently coping with the economic challenges much better than Amazon and other tech companies. But Apple also caused a disappointment after the trading day, the tech giant missed the sales expectations of the market for iPhone sales and also warned of falling sales in the current quarter. The stock fell 2 percent in after-hours trading.
Not the first disappointment for tech investors
Apple and Amazon in particular are one of a series of disappointing quarterly reports from the US tech sector: this week the software company Microsoft, Google parent Alphabet and Meta – the operator of Facebook, Instagram and WhatsApp – presented weak figures.
Meta stock plummets, Nasdaq deep in the red
Weak quarterly figures for heavyweights from the tech industry had already weighed on the US stock exchanges in regular trading yesterday. The Nasdaq index fell another 1.6 percent to 10,792 points under the impression of weak meta numbers after closing in the red on Wednesday.
Meta shares themselves lost almost a quarter of their value yesterday and other industry giants such as Amazon and Apple also lost. The broad S&P 500 index lost 0.6 percent to 3807 points, while the Dow Jones index of standard values rose 0.6 percent.
Nikkei with price losses
In view of the negative guidance from the US, Asian stocks are also trending lower at the end of the week. The Nikkei index, which comprises 225 values, was 0.4 percent lower at 27,248 points. The Shanghai stock exchange was down 0.4 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.5 percent.
The euro is picking up again
The euro, which came under pressure during the ECB meeting yesterday and slipped back below par with the dollar, can pull itself together a bit in the morning. Currently, 0.9981 dollars are paid for one euro, which is an increase of 0.1 percent.
Airbus benefits from the strong dollar
In the DAX, the focus is on the Airbus share in the morning. The strong US dollar and the recovery in jet production have continued to buoy the world’s largest aircraft manufacturer. In the third quarter, sales rose 27 percent year-on-year to 13.3 billion euros. The surplus even jumped by 65 percent to 667 million euros.
The strength of the dollar in relation to the euro is likely to bring significantly more money into the coffers for the year as a whole: the free cash inflow from mergers and customer financing is expected to be around one billion euros higher than previously thought at 4.5 billion euros.
Telekom subsidiary T-Mobile increases growth forecast
Deutsche Telekom shares should also be worth a look today. The Telekom subsidiary T-Mobile US has again increased its growth forecast after a strong third quarter. The company now expects to close the fiscal year with 6.2 million to 6.4 million new contract customers. Previously, the goal was 6.0 million to 6.3 million new users.
ProSiebenSat.1 cancels forecast again
Due to poorer prospects for the advertising business in the most important quarter, the television company ProSiebenSat.1 lowers its forecast again. In addition to Russia’s war of aggression in Ukraine and persistently high inflation, the increasing slack in consumption is having a negative impact on consumers.
Software specialist Compugroup is becoming more pessimistic
The software provider Compugroup Medical, which specializes in medical practices and hospitals, has also shown itself to be more pessimistic for the current year. The reason for this is the postponement of projects to 2023, the company announced last night. The software company sees adjusted earnings per share at between EUR 1.70 and EUR 1.90 instead of between EUR 1.90 and EUR 2.10.
Musk is now in charge of Twitter
Entrepreneur Elon Musk has taken control of Twitter and immediately fired three top managers of the short message service. After backing down, Musk agreed to buy Twitter for $44 billion in early October. According to circles, the tech billionaire initially wants to take over the chief post himself.