market report
Status: 04/14/2023 07:43 a.m
The strong specifications of the US stock exchanges have the potential to ensure a successful weekend close in the DAX. However, the upcoming balance sheets of some US banks have to play along.
The broker IG appraised the leading German index 0.3 percent higher at 15,770 points. On a weekly basis, the DAX shows a gain of a good one percent. The DAX closed 0.2 percent higher yesterday at 15,729 points.
It thus remained just below its most recent highest level since January 2022. On Wednesday, the Dax reached its highest level of over 15,800 points since the beginning of last year, but then fell back somewhat.
US banks in focus
The focus today is on the balance sheets of the major US banks JP Morgan, Wells Fargo and Citigroup. These should not only provide further information about the situation of the financial institutions, but also traditionally herald the start of the US reporting season. Investors should look to see whether and to what extent the recent difficulties of US regional banks such as Silicon Valley Bank have also left their mark on the balance sheets of the large investment houses.
Furthermore, US retail sales, US industrial production and consumer confidence from the University of Michigan are still pending today. It remains to be hoped that the US figures will not contribute to an increase in economic concerns, write the market observers at Helaba. “But even if that were to happen, interest rate concerns would tend to ease, which in turn would benefit the stock market.”
Wall Street is moving forward
New US economic data brightened sentiment on Wall Street yesterday. The Dow Jones gained 1.1 percent to 34,030 points. The tech-heavy Nasdaq was up 2 percent to 12,166, and the broad-based S&P 500 was up 1.3 percent to 4,146.
US producer prices, which are seen as a precursor to inflation figures, rose at a much slower pace in March, pointing to a further slowdown in inflation. According to analysts, investors are hoping that the latest economic data will only encourage the US Federal Reserve to make smaller interest rate hikes. “We’ve climbed to the top of the inflation mountain and it looks like we’re coming down the other side,” said David Russell of online broker TradeStation.
In Asia, the MSCI index of Asia-Pacific equities outside Japan gained about 0.4 percent. The Japanese Nikkei climbed about one percent.
Euro continues to rise
In view of the hope for a cautious US interest rate policy, the euro rises to over 1.10 dollars and thus its highest level in a year. From the point of view of Bundesbank President Joachim Nagel, the ECB must continue its rate hike course in view of the high underlying inflationary pressure: “That means that from a monetary policy point of view there is still a way to go,” said Nagel.
In addition, the mood on the financial markets continues to be friendly. Against this backdrop, safe haven assets like the dollar are less in demand, which in turn gives the euro a further boost.
Covestro delivers figures
The plastics manufacturer Covestro sees its earnings for the first quarter above market expectations. The preliminary Ebitda amounts to 286 million euros and is thus above the company’s own forecast range of 100 to 150 million euros. The preliminary group result shows a loss of around 30 million euros, compared to average loss estimates of 77 million euros. The provisional turnover is 3.743 billion euros.