Status: 09/15/2022 07:40 a.m
After the recent US inflation shock, the DAX is calming down today at a lower level. The interest rate of the central banks remains the main topic on the stock exchange.
After the recent losses, there are at least signs of stabilization on the German stock market. In the first indications, the DAX is expected to be slightly above its XETRA closing price of 13,028 points. The important support mark in the leading German index thus seems to be holding at 13,000 points for the time being.
In Asia, meanwhile, no uniform line is emerging. While China is down around one percent, other markets are usually slightly up. The Tokyo Nikkei index is around 0.2 percent higher. “Equities markets are in no man’s land right now,” said Sean Darby of Jefferies in Hong Kong.
Price data, greeted with relief, eased some of the selling pressure on Wall Street the night before. Freshly released producer price data showed that while US producer price inflation is weakening more than expected, it is broad-based. The major US indices ended up slightly higher. But there can be no question of the all-clear, a further 75 basis point rate hike is considered a foregone conclusion, and even a full point up is currently being discussed on Wall Street.
On the corporate side, shares of Johnson & Johnson stood out positively on Wall Street, rising 2.1 percent. The announcement of billion-dollar share buybacks was blamed for this. The pharmaceutical and consumer goods group has also confirmed its outlook for the year. Outside of the tech sector, the group is one of the biggest heavyweights in the Dow Jones benchmark index.
The euro stayed slightly below par with the US dollar in early trading at $0.9965. After the recent high inflation data from the USA, the recent interim high of the common currency in the direction of 1.02 dollars was quickly a thing of the past.
Economic data cycle ahead
On the futures side, the German wholesale prices in August are likely to generate interest in the morning. Prices are considered a leading indicator of consumer prices. The trade balance from the EU from July is still on the agenda for the morning.
In the afternoon, investors can expect a whole series of new economic data from the USA, including the important retail sales in August, but also data on industrial production. The markets are currently carefully examining every economic figure to see whether it can be deduced that inflation is calming down.
It stays that way – the former Volkswagen boss Martin Winterkorn will not appear at the big fraud trial about “Dieselgate” in the Braunschweig town hall for the time being. The separate proceedings against the ex-group boss can only be conducted separately, said a spokesman for the regional court. According to him, it is not possible to return the complex to the ongoing proceedings.
It is therefore not at all foreseeable that the trial against Winterkorn will begin. The four other former executives accused in this case have been on trial in the Braunschweig town hall for a year now. They are accused, among other things, of commercial and gang fraud with deceptive programs in the exhaust gas control of millions of diesel cars. The complex against the now 75-year-old Winterkorn had been separated at the start on the basis of a medical report.
According to a media report, the electric car manufacturer Tesla is suspending its plan to produce batteries in Germany. The US company wants to change its battery strategy to benefit from tax incentives in the US, reports the Wall Street Journal (WSJ), citing people familiar with the matter. US President Joe Biden signed a new law (“Inflation Reduction Act”) last month, which provides, among other things, tax incentives for electric car manufacturers worth billions.