market report
Status: 10/20/2022 7:42 a.m
The DAX should at least interrupt its recovery rally of the past few days and start with a slight minus.
Experts are currently assuming that the DAX will tend to start trading with a slight minus today. The leading German index would thus follow the weak specifications from the USA. Yesterday, the DAX fell by around 0.2 percent to 12,741.41 points. However, it had risen sharply in the past four trading days.
The reporting season got off to a better start than expected, particularly in the USA, but the deteriorating economy is currently likely to limit a sustained recovery on the stock markets, says Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.
Falling stocks on Wall Street
The specifications from the USA are weak: the Dow Jones closed yesterday 0.3 percent lower at 30,423 points. The tech-heavy Nasdaq fell 0.9 percent to 10,680 points. The broad S&P 500 lost 0.7 percent to 3695 points.
Analyst Konstantin Oldenburger from the online broker CMC Markets describes the market situation as a combination of a pause after the rally and concerns about inflation as well as the cautious forecasts of some companies. At the same time, one longs for good news or other catalysts that could stop volatility.
“It is the uncertainty as to whether yields in the USA will slowly but surely reach their high point and the stock market will be able to consolidate its still fragile ground in return, or in the end only the downward trend since the beginning of the year will continue,” said the expert.
Weak defaults from Japan
Prices are also falling in Asia. The Nikkei index, which comprises 225 values, was 1.1 percent lower at 26,954 points. The broader Topix index fell 0.6 percent to 1893 points. The Shanghai stock exchange was down 0.3 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.6 percent.
Tesla doubles profit
Despite high inflation and global economic concerns, Tesla increased profits significantly in the third quarter. The bottom line is that the electric car maker earned $3.29 billion in the three months ended September, more than twice as much as a year ago. Revenue increased 56 percent to a record $21.45 billion, but fell short of market expectations. Analysts had expected sales of $22 billion. The stock fell 5 percent in after-hours trading.
Lufthansa expects a difficult summer 2023
Lufthansa also expects capacity problems at the airports and in the airspace for the coming year. According to current plans, the group is aiming for an offer in 2023 that will average around 85 percent of the volume from the pre-crisis year of 2019. This increase of around ten percentage points will bring everyone involved to the limits of what they can handle in terms of growth, said CEO Carsten Spohr in an interview with the German press agency.
Strong numbers from Deutsche Börse
Deutsche Boerse profits beat analysts’ forecasts thanks to interest rate hikes and a surge in trading in gas products. The profit attributable to the shareholders rose to 373 million euros in the third quarter, the stock exchange operator announced. That was an increase of 24 percent compared to the same period last year.
The interest rate turnaround by the US Federal Reserve gave Deutsche Börse a growth of 546 percent in net interest income in the banking business. While the company earned EUR 11.4 million in this segment in the previous year, net interest income rose to EUR 73.6 million in the third quarter of this year.