market report
Status: 07/19/2022 07:39 a.m
The Apple setback on Wall Street should also depress the mood in Germany. Experts expect a weak start to trading before the decisive day of the week, Thursday.
The broker IG rated the DAX 0.8 percent lower to 12,855 points before the start of trading. Yesterday, the leading German index went up 0.7 percent to 12,959.81 points. On Thursday, the European Central Bank (ECB) will raise interest rates in the euro area for the first time in more than ten years.
In addition, the maintenance work on the gas pipeline Nord Stream 1 should also end. Investors worry that Russia might then not be able to turn on the gas tap again. Investors are therefore advised to exercise restraint before these dates.
How’s the reporting season going?
The reporting season could continue to provide impetus. Today, among other things, the figures from Johnson & Johnson, Lockheed-Martin and Netflix are due. The European balance sheets are now also being published. “A handful of companies have already presented figures and beat expectations by an average of seven percent, which gives hope for a solid reporting season,” comments Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.
However, as long as there are no signs of easing in European energy security, a pleasing reporting season could fizzle out without any significant impact on prices, especially since earnings growth is likely to lose momentum towards the end of the year and the economic slowdown is likely to trigger earnings revisions, concludes the market observer.
Apple scare on Wall Street
The US specifications are not exactly inviting: The Dow Jones went 0.7 percent lower with 31,072 points from trading. The Nasdaq fell 0.8 percent to 11,360 points. The S&P 500 lost 0.8 percent to 3,830 jobs.
According to dealers, the price losses are related to Apple: According to a media report, the technology group wants to put the brakes on costs in certain areas in the coming year. The US company plans to slow hiring and slow spending growth in some business areas in 2023 in anticipation of a potential economic downturn, Bloomberg reports. This fed investors’ fears of an economic downturn.
Asia mixed
In Asia, the markets found no common direction. The Japanese Nikkei was 0.7 percent higher at 26,977 points. The broader Topix index rose 0.5 percent to 1,902 points. The Shanghai stock exchange, on the other hand, was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.7 percent.
Fraport boss sees airports under pressure
The head of Frankfurt Airport (Fraport), Stefan Schulte, expects problems at German airports in the coming weeks. “The summer will remain difficult,” Schulte told the newspaper “Mannheimer Morgen” (Tuesday edition). It was underestimated how much people had to catch up if they wanted to travel again. “We knew that it would be a strong year and we took that into account in our planning. But every forecast was clearly overtaken and many more people fly than expected. The airports and airlines have too few staff at all levels for this.”
IBM exceeds sales expectations
A strong cloud business brought the US computer group IBM sales in the second quarter that exceeded expert expectations. While overall revenue rose slightly more than expected, up 9 percent to $15.5 billion, the data cloud segment was up 18 percent. Net income was $1.392 billion, up slightly from $1.325 billion in the same period last year.
“FT” – Arm IPO in UK on hold
According to the Financial Times, technology investor SoftBank is putting its plans for a London IPO of chip group Arm on hold because of the turbulence in the British government. The resignations of Investment Secretary Gerry Grimstone and Digital Secretary Chris Philp following the collapse of Boris Johnson’s government have prompted SoftBank to pause talks of an ARM IPO, the FT reported, citing insiders. Grimstone and Philps would have played a leading role in the talks. SoftBank could now also go the way of a simpler stock exchange listing in the USA, which the investor originally preferred, it said.