Support inflation data: DAX in November up 8.6 percent

market report

Status: 11/30/2022 6:27 p.m

A slight relaxation in consumer prices helped the DAX to end the month on a positive note. November brought handsome gains to investors.

The DAX ended today’s trading day with a slight plus of 0.3 percent. The gain of the leading German index in the stock market month of November thus totaled around 8.6 percent. Seasonally, November is often a good stock market month. However, the analysts at HSBC refer to the unusually long “good weather period” in the DAX, which has now lasted for more than eight weeks. The share barometer has only done something like this five times in its entire history since 1988. “There has never been more than ten positive weeks in a row. This shows how extraordinary the current recovery series is.”

The current consumer price data from the euro zone was well received on the stock exchange. Because the Inflation rate in the euro zone fell for the first time in several months. Economists had expected 10.4 percent. The slight decline from the previous record level should those monetary authorities in the European Central Bank (ECB) Provide arguments in favor of a slightly less powerful rate hike at the upcoming December 15 rate meeting.

US stock markets undecided

The stock exchanges in New York tend to be mixed. Slight declines in the Dow Jones are offset by slight gains in technology stocks. Today’s economic data paints a mixed picture. While the US economy grew faster than expected at 2.9 percent in the summer quarter, US companies created far fewer jobs than expected in November. The bottom line was that only 127,000 jobs were created, as the personnel service provider ADP announced.

Investors are also awaiting fresh impetus tonight from a speech by Federal Reserve Chairman Jerome Powell, which could provide some clues as to further monetary policy moves. The Beige Book, the Fed’s economic report, is then published at 8 p.m.

Still worried about China

The financial markets continue to be unsettled by the situation in China. Recent surveys show that the Sentiment in China’s economy has deteriorated. Economic activity remains on a contraction course in the face of record corona numbers with lockdowns and the recent protests.

Euro falls back

The European common currency fell back to just over 1.03 dollars in the afternoon. This could be a belated reaction to the slightly falling inflation rate in the euro zone, which tends to make a less tight interest rate course by the ECB more likely.

oil prices rise

In the early evening, a barrel (159 liters) of North Sea Brent costs $85.36. That’s 1.5 percent more than yesterday. The market also explains the increase in oil prices with the recent development of oil reserves in the USA. Crude oil inventories have fallen surprisingly sharply in the past week. They fell by 12.6 million barrels compared to the previous week. On average, economists had only expected a decline of 3.1 million.

In addition, the oil market is nervous ahead of the OPEC+ oil alliance meeting on Sunday. The member states of the oil cartel and other important producing states such as Russia are organized in OPEC+. Recently, there was speculation on the market that OPEC+ could keep the production volume unchanged.

Bitcoin soon irrelevant?

Bitcoin may stabilize above $16,800 today. The European Central Bank issued a strong attack on the cyber currency today: According to two high-ranking ECB experts, Bitcoin is after the another price crash in the wake of the FTX bankruptcy on the way to insignificance. Bitcoin proponents would have hoped for a respite on the way to new heights before the FTX collapse. “It was already clear beforehand that it was more of a final gasp on the way to irrelevance,” said a blog post by ECB Director General Ulrich Bindseil and ECB adviser Jürgen Schaaf, which the ECB published on its website today.

At current levels, the leading cryptocurrency is down more than 63 percent year-to-date. As recently as November 2021, it had peaked at around $69,000. The recent turmoil in the sector had prompted calls for tight regulation around the world. “Since Bitcoin does not appear to be suitable either as a payment system or as a form of investment, it should not be treated as either of the two from a regulatory point of view – and should therefore be legitimized,” the ECB authors demanded.

Mercedes is allowed to park without a driver

The second largest DAX winner was the Mercedes-Benz share. The fully automated, driverless parking system developed by the group together with Bosch can go into series production. The Federal Motor Transport Authority (KBA) has granted permission to do so, the partners declared today. It is the first release for series operation worldwide. Driverless parking will initially only be used in the P6 multi-storey car park at Stuttgart Airport. The parking space can be booked using a smartphone app, the car can be sent off and ordered back to the ancestor.

Material bottlenecks in the automotive industry

According to a survey of companies by the ifo Institute, the shortage of materials in German industry has continued to decline. A good 59 percent of the companies surveyed stated in November that they were suffering from bottlenecks – this is the lowest value since April 2021. According to the ifo, the problem of lack of materials in the automotive industry continued to worsen. More than 83 percent of the companies complained about difficulties, compared to almost 75 percent in the previous month.

Uniper wants to sue Gazprom

The Düsseldorf utility Uniper, which is about to be nationalized, wants from the Russian Gazprom group because of the lack of gas deliveries Sue for damages in the billions. “Uniper has initiated arbitration proceedings,” said CEO Klaus-Dieter Maubach. The gas replacement costs have so far amounted to 11.6 billion euros. This sum will continue to rise until the end of 2024. The procedure should take place before an international arbitral tribunal in Stockholm, said Maubach.

Gazprom rejected this immediately. The Russian energy giant did not break any contracts. It is therefore unclear whether such private-sector arbitration proceedings take place at all. Maubach emphasized that if necessary, Uniper would also go to court in Germany. The group has been making high losses for months because it has to find expensive replacements for missing gas deliveries from Russia. In the first nine months of this year, the Düsseldorfers had accumulated a minus of 40 billion euros.

The energy group wants to put the floating liquefied natural gas terminal in Wilhelmshaven into operation before the end of this year. Only particularly bad weather could thwart the plan, said CEO Klaus-Dieter Maubach today. Liquefied natural gas (LNG) is playing a key role in the federal government’s efforts to replace gas supplies from Russia. Yesterday, US energy giant ConocoPhillips and QatarEnergy signed an agreement to supply LNG to Germany.

UBS finds telecom sector attractive

The major Swiss bank UBS has left Deutsche Telekom’s rating at “Buy” with a price target of EUR 26.40. Analyst Polo Tang wrote in a recent study that Germany is a good market for the telecoms industry, but with specific challenges. His favorite is Deutsche Telekom.

Passenger numbers help Fraport

The share of the airport operator Fraport was traded in the MDAX with price gains. The number of air travelers in Germany more than doubled during the summer flight schedule due to decreasing corona concerns. From April to October, the number of passengers rose by 108.7 percent compared to the same period last year to around 59.0 million, as reported by the Federal Statistical Office. Domestic air traffic also increased, with an increase of 84.2 percent to 4.46 million passengers, but less than international traffic.

More losses at SAS

The insolvent Scandinavian airline SAS extended its loss in the fourth quarter. The pre-tax loss rose to 1.7 billion Swedish crowns (155.36 million euros) after a minus of 945 million in the previous year. According to SAS, it intends to complete the bankruptcy proceedings in the second half of 2023. In addition, the implementation will “probably result in additional legal proceedings in jurisdictions other than the United States”. For this reason there is “no guarantee that the shareholders of SAS AB will receive any compensation”.

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