market report
Status: 02/23/2023 07:40 a.m
The DAX is heading towards the 15,500 point mark again. The German stock market is once again surprisingly resilient in the face of ongoing interest rate concerns.
The DAX should start the trading day a little higher. The broker IG assesses the leading German index at the hour 0.4 percent plus to 15,455 points. Yesterday, the DAX fell to 15,247 points before finally stabilizing significantly.
DAX caught in tight confines
The DAX thus remains in the narrow trading range of the past two weeks. “From a technical point of view, nothing will burn in the DAX as long as the market is trading above 15,240 points,” Konstantin Oldenburger, market analyst at broker CMC Markets, is convinced.
Conversely, however, the following also applies: only a breakout above the upper limit of the trading zone at 15,553 points could now help the DAX to achieve a sustained upward thrust.
Wall Street mixed after Fed minutes
The situation on Wall Street also remained shaky yesterday. After all, the technology-heavy Nasdaq managed a small plus and advanced 0.1 percent to 11,507 points. The Dow Jones index of standard values, on the other hand, went down 0.3 percent to 33,045 points from trading. The broad S&P 500 lost 0.2 percent to 3991 points.
The focus was on the latest meeting minutes of the US Federal Reserve. It showed great approval for the small rate hike at the beginning of February. According to the transcript, no interest rate break had been discussed. The experts at Credit Suisse do not see any new monetary policy signals for the market, which is characterized by interest rate concerns. The Fed remains focused on inflationary risks and economic data since the meeting have reinforced its hawkish stance, it said.
Tokyo Stock Exchange closed
Asian stock markets hovered near their seven-week lows in the morning. Investors fear that interest rates will need to keep rising and stay high to curb inflation. The Shanghai stock exchange was up 0.2 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.1 percent. The Japanese markets are closed for a national holiday.
Euro and gold are stabilizing
The euro is up 0.2 percent in Asian trading at $1.0621. The dollar showed strength yesterday following the release of Fed minutes. At the same time, the European common currency slipped just below $1.06 at times.
There are also signs of a gentle counter-movement in the price of gold. A troy ounce of gold cost $1,829 in the morning, 0.2 percent more than the previous evening.
Deutsche Telekom with sales and profit boost
In the DAX, the focus is on Deutsche Telekom shares. The strength of the dollar gave the telecom group a boost in sales and profits last year. The Bonn-based group announced that the revenues had increased by 6.1 percent to 114.4 billion euros. Net profit increased by 55 percent to 9.1 billion euros.
SAP wants to increase dividend
As expected, SAP wants to pay out less total dividends than in the previous year, but increase the regular distribution. The shareholders of the DAX heavyweight should receive 2.05 euros per paper, as the group said in Walldorf in the evening after a resolution by the supervisory board and board of directors. Meanwhile, Hasso Plattner intends to step down from his position as Chairman of the Supervisory Board by 2024 at the latest.
Mercedes-Benz has hopes for its own car software
The car manufacturer Mercedes-Benz expects great business opportunities for the planned own car software. By the end of the decade, software-driven sales in the group are expected to multiply to a high single-digit billion euro amount, as the company announced yesterday at a presentation on the new software operating system “MB.OS” in Sunnyvale, California.
Freenet lets dividend hunters cheer
The growth of high-margin service revenues and growth in the mobile and TV business brought Freenet 2022 an increase in profit. A dividend of EUR 1.68 per share is to flow to investors for 2022, after EUR 1.57 for the year before. This results in a dividend yield of around seven percent for shareholders. The paper has always been popular with dividend hunters.
Nvidia wants to score with cloud service for artificial intelligence
The chip company Nvidia is benefiting from the boom in applications with artificial intelligence. Now a cloud offer is to expand the business. Last quarter, Nvidia beat market expectations despite significant declines in revenue and earnings.
Ebay has big plans
The online retailer Ebay is more optimistic for the first quarter than experts had expected. The US group predicted quarterly sales of between 2.46 and 2.50 billion dollars after the US stock market closed. Ebay focuses on cost-conscious customers who are interested in used and refurbished items in view of high inflation and the looming recession.