Market report
Status: 10/15/2021 8:07 a.m.
Strong targets from the USA and the positive start to the reporting season are attracting further investors back to the stock market. The DAX will probably advance again and target the next round mark.
Banks and brokers assume that the DAX will open over 15,500 points with a premium of almost half a percent. Yesterday, the leading German index went out of business with a plus of 1.4 percent to 15,462.72 points.
The reporting season is currently proving to be a driver on the stock markets: Strong quarterly figures from major US banks had spurred trading on Wall Street yesterday. Citigroup, Bank of America and Morgan Stanley stocks rose after their balance sheets beat estimates for quarterly results.
The US benchmark index Dow Jones rose 1.6 percent to 34,912 points on Thursday. The technology-heavy Nasdaq advanced 1.7 percent to 14,823 points, the S&P 500 also improved 1.7 percent to 4,438 points. The positive sentiment was also driven by easing concerns about the prospect of higher interest rates. The number of weekly jobless claims fell almost to a 19-month low. In addition, producer prices fell in September.
The mood on the Asian stock markets is also relaxed, the stock exchanges are following Wall Street into positive territory. But there are also skeptics: “US earnings will lift sentiment in some areas, but recently we have seen Asian markets, particularly mainland China and Hong Kong stocks, that regional concerns are some of the more positive sentiments from the region US markets have overlaid, “said Kyle Rodda, an analyst at IG Markets. “My feeling is that the Asian markets will remain quite mixed and volatile.”
This is currently not the case: the Nikkei Index, which comprises 225 values, was 1.4 percent higher at 28,941 points. The broader Topix index rose 1.3 percent and stood at 2012 points. The stock exchange in Shanghai was 0.1 percent in the plus. The index of the most important companies in Shanghai and Shenzen gained 0.2 percent.
The economic data of the day
At the end of the week there are again interesting economic data. In addition to the EU trade balance in the morning, the retail sales from the USA are also published later that day. Due to the great importance of consumption for the US economic performance, experts attribute a certain importance to these figures – experts expect a decline of 0.2 percent for September compared to the previous month.
This is followed by the Empire Stare Index and the usually highly regarded consumer confidence of the University of Michigan. Some senior central bankers will also speak out later in the day.
The series of problems with Boeing’s 787 “Dreamliner” breakdown jet continues. A supplier announced that some 787 components had not been manufactured correctly, the aircraft manufacturer announced. At the same time, Boeing emphasized that, according to previous knowledge, there were no safety concerns with the machines currently in flight. Possible improvements to the 787 fleet will be coordinated with the US aviation authority FAA.
In its statement, Boeing did not provide any information about which components were affected and which supplier it was concerned with. The “Wall Street Journal” had previously reported that some titanium components were made weaker than intended. Boeing has already replaced them on two machines that have not yet been delivered, it said, citing informed people.
The fashion group Hugo Boss is more optimistic about the year as a whole. In 2021, currency-adjusted sales are expected to be 40 percent higher than in the previous year. Hugo Boss had previously assumed an increase of 30 to 35 percent. Earnings before interest and taxes (EBIT) should now be between 175 and 200 million euros (previously: 125-175). In 2020, Hugo Boss had earned 1.9 billion euros and posted a minus of 236 million euros in EBIT.
In the third quarter, according to preliminary figures, “thanks to the further noticeable recovery in global business”, currency-adjusted sales rose by 42 percent to 755 million euros. This was the first time that sales and profits had increased at the pre-pandemic level, the statement said.