Market report
Status: 08/30/2021 7:46 am
After the speech by US Federal Reserve Chairman Jerome Powell, the DAX is starting the new week stronger. Thanks to a U-turn on Friday, the German standard values keep their chances towards a record high.
According to the calculations of banks and brokers, the DAX should start trading in XETRA near its closing price on the previous day. On Friday, after long hesitation and hesitation in late trading, the DAX had worked its way into the profit zone and finally said goodbye to the weekend with an increase of 0.4 percent to 15,852 points.
As a result, the DAX was able to defend its important breakout level of 15,800 points per week’s closing price for the second week in a row. This means that – at least from a technical perspective – he has preserved his chances of another attack on the all-time high (16,030 points).
When the news is not good news
Fed boss Jerome Powell provided a tailwind in late DAX trading on Friday, who sounded cautious in his speech at the virtual central bankers conference in Jackson Hole, avoided setting an exact schedule for an exit from the ultra-loose monetary policy and so on continued the Federal Reserve’s communications policy of the past few weeks.
Christian Scherrmann, US economist at asset manager DWS, now expects “the start of the reduction in bond purchases at the end of this year at the earliest”. The Commerzbank economists “continue to expect that the Fed will decide in the fourth quarter to reduce bond purchases,” as economist Christoph Balz emphasizes.
These expectations should give the markets the necessary security until the next central bank meeting in September. The most important point at Powell was that he had not taken the plans to exit the crisis mode off the table, says Christoph Kutt from DZ Bank. So the market continues to believe in the recovery.
The Dow Jones index of standard values closed on Friday 0.7 percent higher to 35,455 points. While the Dow Jones is still 175 points short of its now almost two-week-old record, Nasdaq and S&P were able to conquer new record highs. The technology-heavy Nasdaq advanced 1.2 percent to 15,129 points. The broad S&P 500 gained 0.9 percent to 4509 points.
The good specifications from Wall Street are also having a positive effect on the Asian stock exchanges at the beginning of the week. The Japanese Nikkei index, comprising 225 values, is 0.5 percent higher at 27,765 points shortly before the close of trading in Tokyo. The Shanghai stock exchange is up 0.2 percent.
A risk factor for the stock markets, however, remains the oil price, which had risen more strongly in the past week than it has been in 14 months. At the beginning of the week, the price of a barrel (159 liters) of North Sea Brent rose by another 0.2 percent to $ 72.82. A barrel of WTI oil costs $ 68.55.
The background to this is the destructive hurricane “Ida”, which interrupts oil production in the Gulf of Mexico – the region covers 17 percent of US crude oil production, and more than 45 percent of the refining capacities are along the coast.
The dollar has been under slight pressure against other currencies since Powell’s speech on Friday, as the US Federal Reserve chief did not have a precise schedule for “tapering”, ie reducing bond purchases, at hand at the Jackson Hole conference. In return, the euro climbed above the $ 1.18 mark. Currently, $ 1.1804 is paid for one euro.
The weakening dollar had already given the gold price a boost at the end of the week. The yellow precious metal was able to regain the psychologically significant $ 1,800 mark. At the beginning of the week, an ounce of gold costs $ 1,816, 0.1 percent less than on Friday.
On the German stock market, Qiagen comes into focus in the morning. The biotechnology and diagnostics company is aiming for takeovers and could delight its shareholders with dividend payments in the future. “We are currently very active,” said CFO Roland Sackers of the “Börsen-Zeitung” with a view to acquisitions. The group is very interested in expanding the test portfolio or further access to bioinformatics.
Japan has again detected contamination in an ampoule of Moderna’s Covid-19 vaccine. A very small, black substance was found in a vaccine vial from Moderna, according to an official from Gunma Prefecture. Just last week, Japan stopped using 1.63 million doses of Moderna after domestic distributor Takeda Pharmaceutical received reports of contamination in some vials.