market report
Status: 05/18/2022 07:27 am
In the middle of the week, there were initially no further clear price gains in the leading German index. Thanks to good targets, especially from the USA, the DAX should start trading well above the 14,000 point mark.
At around 14,200 points, XETRA trading will start based on pre-market signals. This corresponds to an increase of 0.2 percent compared to yesterday’s closing level. The psychologically important mark of 14,000 points is thus clearly defended.
Good figures make courses on Wall Street
The US stock exchanges had actually given much more tailwind for European trading in the evening. Good business figures from some large corporations caused prices to rise across the board. The standard value index Dow Jones closed 1.3 percent higher at 32,654 points. The technology-heavy Nasdaq even gained 2.8 percent to 11,984 points. The S&P 500 gained two percent to 4088 points. The sell-off of the past few weeks has exhausted the sellers, said financial market expert Mimi Duff from the consulting firm GenTrust. “Therefore, at any sign of good news, a rebound is possible.”
Asia stock exchanges with plus and minus signs
In Asia, the stock markets in the Far East are showing a mixed picture in the morning. The Shanghai stock exchange was down 0.5 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.8 percent. The Japanese Nikkei index, on the other hand, was 0.7 percent higher at 26,851 points.
Japan’s economy is shrinking more slowly
The Japanese economy contracted more slowly than expected in the first quarter. Delivery bottlenecks and renewed virus outbreaks depressed corporate spending, but private consumption proved resilient. The gross domestic product (GDP) fell by 0.2 percent in the period, but the market forecasts had assumed an average minus of 0.4 percent. Private consumption, which accounts for more than half of the Japanese economy, also exceeded analysts’ expectations.
Euro stays above 1.05
On the foreign exchange market, the euro is able to hold its own in the morning at the level reached above the $1.05 mark. The European common currency is currently trading at $1.0533. This could have initiated a trend reversal after the last five-year low at $1.0354.
Types of oil on the same
Oil prices are currently stabilizing at a fairly high level. The most important types of oil, the North Sea variety Brent and US oil of the variety WTI, are almost equal at 110.50 dollars per barrel. This corresponds to a slight decrease compared to yesterday’s prices. A troy ounce of gold this morning is $1,809, slightly less than yesterday.
Will Siemens Energy swallow its wind subsidiary?
MDAX member Siemens Energy makes news on the German stock market in the morning. According to the Bloomberg news agency, the energy technology group wants to completely take over its Spanish problem subsidiary Siemens Gamesa. In the project, the remaining shares in the wind power company that are not yet owned by the company are to be acquired. The takeover is to be paid for in full in cash and could be made public as early as next week. In a further step, Siemens Gamesa could then be taken off the stock exchange, it said. Siemens Energy already owns a good two-thirds of Gamesa’s shares.
TUI pays back further state aid
The travel group has raised 425 million euros in fresh capital for the repayment of state aid from the Corona crisis. With the fresh money and available cash, TUI wants to repay one of the two silent participations of the state Corona Aid Fund WSF with a volume of 671 million euros, according to a company announcement from yesterday evening. The state had saved TUI from the end with a total of 4.3 billion euros in financial aid in the Corona crisis.
RWE issues green bond
The utility has issued another green bond with a total volume of two billion euros. The bond was issued in two tranches of one billion euros each with maturities until 2026 and 2030, according to RWE. For the first tranche, the yield to maturity is 2.2 percent. For the second tranche, the return to maturity is 2.9 percent. The issue met with strong interest among investors. RWE had already issued two green bonds with a total volume of 1.85 billion euros last year.
Netflix is laying off employees
Growth at the US video streaming provider is stuttering. Netflix has announced the layoff of 150 employees, most of them in the US. This corresponds to about two percent of the employees in the home market. Netflix had recently seen its subscriber base drop for the first time in a decade. The world’s largest streaming provider cited the war in Ukraine, inflation and fierce competition as justification.