market report
Status: 03/29/2023 07:28 a.m
After recapturing the 15,000-point mark, the DAX should initially post gains today as well. However, rather weak US stock markets are not providing any tailwind. And the problems in the banking sector are not over yet.
With 15,200 points and thus around 0.4 percent higher, the leading German index should start trading on XETRA, as indicated by pre-market indications. Yesterday, the DAX recorded a mini plus of 0.1 percent.
Wall Street is weakening
On the world’s leading stock exchange in the USA, the indices had not generated any significant momentum after the relief rally at the beginning of the week. A day after the takeover of the bankrupt Silicon Valley Bank (SVB), the indices closed in the red. The Dow Jones index of standard values lost 0.1 percent to 32,394 points. The tech-heavy Nasdaq fell 0.5 percent to 11,716 points. The broad S&P 500 lost 0.2 percent to 3971 points.
aftermath of the bank earthquake
Observers referred to statements by the head of banking supervision at the US Federal Reserve, Michael Barr, before the US Senate in Washington. Barr complained about a failure of the SVB’s risk management: “Basically, the risk model was not adapted to reality,” he explained. “On Wall Street, people don’t quite trust the roast of an alleged stabilization of the banking sector,” commented Jochen Stanzl from broker CMC Markets. The concern about the connection between rising interest rates and a possible recession because of the problems in the banks is quite justified.
Alibaba is peddling in Asia
Little movement in the morning on the Asian stock markets. The Shanghai stock exchange was down 0.1 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.1 percent. The restructuring plans of the Chinese Amazon rival Alibaba caused the share price to jump by around 16 percent. In Japan, shares of Softbank Group, a major Alibaba shareholder, rose 6 percent. The Japanese Nikkei index was 0.4 percent higher at 27,626 points.
Euro remains firm, oil rises slightly
On the foreign exchange market, the euro has stabilized well above the $1.08 mark. In the morning, the European single currency is trading at $1.0838. On the crude oil market, the decreasing fear of a banking crisis is causing a slight price increase. The closure of an oil pipeline from Iraq to Turkey, through which 450,000 barrels (159 liters) of crude oil flow a day, is also supporting the price due to a reduction in supply. A barrel of North Sea Brent costs $78.40 in the morning.
On the stock market, investors have to evaluate a number of company figures from the DAX and the second-tier indices in the morning. Infineon and Aroundtown already presented their balance sheets and prospects yesterday evening.
Infineon raises forecast
Yesterday evening, the semiconductor manufacturer Infineon raised its forecast for the current quarter due to robust business development in the core areas of automotive and industry. In the second quarter of the 2022/23 financial year, which ends on September 30, sales of more than four billion euros are now expected. So far, the forecast had been around 3.9 billion euros. The margin should also be higher than planned: instead of 25 (previous year: 23.1) percent, it should be close to the 30 percent mark.
Aroundtown cancels dividend
On the other hand, commercial real estate specialist Aroundtown is cutting its dividend due to the difficult economic situation. Last year, the company listed in the MDAX recorded a loss of 457 million euros due to falling real estate values and depreciation. Despite the difficult conditions, it was possible to part with assets of 1.6 billion euros in 2022, it said in the evening. Net rental income increased by 13 percent to 1.2 billion euros in 2022. The profit figure FFO I, which is important for the industry, rose by three percent to 363 million euros.
Adidas argues about stripes
The sporting goods group is taking action with the American Patent and Trademark Office against the use of the stripe design on clothing, bags and websites of the US Black Lives Matter movement, among other things. In the application submitted on Monday, Adidas refers to a likelihood of confusion. The Black Lives Matter Global Network Foundation was founded in 2013 by the originators of the movement and is considered influential among activists. She had registered her trademark design with three stripes in November 2020, according to the documents.
Kuwait reduces Mercedes stake
The Kuwaiti state is reducing its stake in the carmaker Mercedes-Benz. The sale of around 20 million shares is part of a diversification strategy for investments, the Kuwait Investment Authority (KIA) said in the evening. After selling a quarter of its stake, KIA will still hold around 53 million shares. According to data from the Bloomberg news agency, it is currently 6.8 percent of the share capital. At the targeted price of 69.27 euros per Mercedes share, KIA would achieve proceeds of around 1.4 billion euros.