Subdued stock market start expected: fear of interest rates is spreading again

market report

Status: 06.12.2022 07:31 a.m

After significant losses on Wall Street yesterday evening, the DAX is struggling to maintain its level today. Concerns about interest rate hikes flare up again in the USA after good economic data.

At 14,440 points, the leading index should be able to just about defend its closing level at the opening of trading yesterday. This is indicated by pre-market indications. The DAX is thus bracing itself against the downward pull on Wall Street.

Strong US data worry

Surprisingly strong growth in the US service sector had exacerbated interest rate concerns in New York in the evening. The Dow Jones index of standard values ​​lost 1.4 percent to 33,947 points. The broader S&P 500 was down 1.8 percent to 3,998 points and the tech-heavy Nasdaq was down 1.9 percent to 11,239.

Service providers in the USA unexpectedly further increased their pace of growth in November. This adds to concerns that the US Federal Reserve could hike interest rates for longer than recently expected. Surprisingly good US labor market data had already been reported on Friday.

Asian stock markets undecided

In Asia, the stock markets find little clear direction in the morning. According to market observers, investors here remain confident that the Chinese economy will recover as a result of the relaxation of the zero corona policy. The Japanese Nikkei index closed 0.2 percent higher at 27,886 points. The Shanghai stock market was down 0.1 percent.

EUR lightly charged

On the currency market, the euro is hovering near the $1.05 mark. However, speculation about a tighter interest rate in the USA should tend to weaken the European common currency.

Oil prices are slightly above yesterday’s levels this morning. A barrel of North Sea Brent costs around $83 in early trading. The price for a troy ounce of gold is hardly changed at 1771 dollars.

Porsche AG soon in the DAX

Among the German shares, the paper of Porsche AG should be in focus in the morning. Before Christmas, another carmaker will be included in the DAX with the Volkswagen subsidiary, as the German Stock Exchange announced in the evening. Because of the inclusion of Porsche AG, the sporting goods manufacturer Puma has been relegated from the DAX to the MDAX.

There is also movement in the other indices. Puma is displacing the battery manufacturer Varta in the MDAX, which is being relegated to the SDAX small-cap index. As a result, the online fashion retailer About You falls out of the index of small and medium-sized companies.

RWE takes action against Gazprom

After Uniper, the energy group RWE is now also pursuing arbitration proceedings against the Russian state-owned company Gazprom because of the lack of gas deliveries. According to a spokesman, RWE has taken the necessary legal steps. The energy company Uniper announced last week that it had applied for arbitration proceedings against Gazprom Export before an international arbitral tribunal. The background to this is Gazprom’s cutback and eventual suspension of Russian gas supplies to Germany last summer.

Another change of boss at FMC

After only two months, there is another change at the top of the ailing dialysis group Fresenius Medical Care (FMC). According to the company, Carla Kriwet has resigned from her position as chairwoman and member of the Management Board with effect from the end of December 5, 2022. Effective December 6th, Helen Giza will take over the management of the company. She will also remain CFO until a successor is found.

Pfizer and BioNTech are suing Moderna

The US pharmaceutical company Pfizer and its German partner BioNTech have filed a lawsuit in a Boston federal court against the US biotech company Moderna in a dispute over competing corona vaccines. It sought dismissal of the pending Moderna lawsuit and a declaration that Moderna’s patents are invalid and not infringed.

Moderna first sued the Mainz-based vaccine manufacturer and the US pharmaceutical giant in August, accusing the companies of infringing on its technology patents.

Facebook threatens US media law

Facebook parent Meta is threatening to remove all messages on the platform if a controversial US media law is passed. The company would be forced to potentially pull all news if the law went into effect, according to Meta spokesman Andy Stone. The so-called Journalism Competition and Preservation Act is to be launched to protect local journalism in particular. Accordingly, the large technology groups should pay for media content that brings users and advertising revenue to their platforms.

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