market report
Status: 08/12/2022 07:39 a.m
It currently looks as if the DAX will start the last trading day of the week with little movement. Experts are now skeptical about the current price potential.
The broker IG appraised the DAX before Xetra start 0.1 percent lower to 13,675 points. In the course of the week so far, the leading German index has increased by 0.9 percent. Yesterday, the DAX was relatively stable with minus 0.05 percent to 13,694.51 points and defended the price gains from Wednesday.
Fundamental impulses are missing
After the strong recovery in the stock markets in recent weeks, the experts at Credit Suisse are now skeptical as to whether this level can be maintained. They therefore revised their tactical recommendation of overweighting equities as an asset class in the portfolio and only recommend a neutral positioning.
The DAX failed again to overcome the crucial resistance in the range of 13,723 to 13,824, write the experts at Helaba. “Since fundamental impulses are not to be expected today and the first indications suggest a slightly weaker opening, the consolidation below the mentioned area should initially continue,” is their assessment.
US specifications weak
In addition, there are weak US specifications, Wall Street closed yesterday without a clear direction. The leading US index Dow Jones was able to increase by 0.1 percent to 33,337 points. In contrast, the broad S&P 500 lost 0.1 percent to 4,207.27 points. The tech-heavy Nasdaq fell 0.6 percent to 12,779.91 points.
Inflation and the Fed’s interest rate policy are still the topic: Investors are puzzled as to how much the US Federal Reserve is likely to raise interest rates at the next meeting in September. “The weakening of the CPI in the US, while reducing fears that the Federal Reserve would act too aggressively, does not mean a decisive turnaround for monetary policy, as the main drivers of inflation, such as energy and commodity prices, remain high,” said Paolo Zanghieri from Generali Investments.
The expert assumes a rate hike of 50 basis points in September – “with a certain risk of a further increase of 75 basis points like in July.”
Nikkei is catching up
The Tokyo stock exchange initially showed itself stronger when it reopened after a holiday today. The Nikkei was 2.5 percent higher at 28,507 points, catching up on price gains on the international stock markets after the inflation data from the USA. The Topix rose 1.8 percent to 1,969 points. Otherwise, investors in Asia held back because of the uncertainties about the future interest rate policy of the US Federal Reserve. “The Fed will do what it said – whatever it takes to fight inflation,” said Carlos Casanova of private bank UBP.
The Shanghai stock exchange was down 0.2 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.2 percent.
Biofuel in demand – Südzucker is raising the forecast again
Thanks to good business with biofuel, the agricultural group Südzucker has increased its profit forecast for the second time in two months. For the 2022/23 financial year, “due to the significantly improved forecast for the CropEnergies segment”, with sales of EUR 8.9 to 9.3 (previous year 7.6) billion, an operating group result of EUR 450 to 550 (previous year 332) million is now expected . Südzucker’s listed subsidiary CropEnergies produces bioethanol, a plant-based fuel that is mixed with car fuel.
Twitter reactivates rules against fake news
Three months before the midterm elections to the US Congress, the short message service Twitter wants to revive functions to prevent false and misleading posts, the company said. This activates a policy introduced in 2018 that prohibits users from posting misleading content designed to discourage voters from voting. In addition, statements intended to undermine confidence in the election are prohibited. This includes misinformation about the election result.