market report
Status: 06.04.2023 07:32
The DAX is likely to start the last day of the shortened trading week before Easter with slight losses. Investors are initially reluctant to release US jobs data.
The broker IG assessed the DAX on Maundy Thursday before the start of trading 0.2 percent lower to 15,492 points. It is therefore likely to continue the setback from its high of 15,736 points reached on Tuesday since January 2022. Yesterday, the leading German index went down 0.5 percent to 15,520.17 points.
Labor market data in focus
The topic of the economy is currently being discussed on the market: “It makes sense to balance out a certain risk before the long Easter weekend,” wrote IG analyst Tony Sycamore. “All eyes are now on Friday’s US payrolls release,” Sycamore said.
In addition to jobs in the private sector, the government’s official monthly labor market report also includes public sector jobs. Today, the first weekly jobless claims in the US will be published.
Wall Street without momentum
Yesterday, weak US economic data had already dampened sentiment on Wall Street. The Dow Jones closed a moderate 0.2 percent higher at 33,482 points. The technology-heavy Nasdaq, on the other hand, fell 1.1 percent to 11,996 points. The S&P 500 lost 0.2 percent to 4090 points.
According to analysts, economic figures for the past two days have fueled fears of a recession. After the drop in orders in US industry on Tuesday, the purchasing managers’ index from the service sector published on Wednesday “continued the series,” said Konstantin Oldenburger, an analyst at broker CMC Markets. The data from the personnel service provider ADP on job growth in the US private sector in March also caused concern. With 145,000 new jobs, they were weaker than expected.
Asia’s stock markets weak
Profit-taking also pushes Asian markets lower ahead of upcoming US jobs data. Heightened geopolitical tensions between China and the US over Taiwanese President Tsai Ing-wen’s meeting with US House Speaker Kevin McCarthy in California also kept Asian markets in check.
The Nikkei was 1.1 percent lower at 27,500 points. The Topix fell 0.9 percent to 1,966 points. South Korea’s Kospi fell 0.6 percent, while Australia’s stock index slipped 0.3 percent. The stock exchanges in China have been closed since Wednesday for the holiday.
At BaFin, complaints about banks are piling up
The financial supervisory authority BaFin is registering more and more complaints about banks and financial institutions. In 2022, the number of complaints rose by a fifth to 15,000, according to Bafin surveys available to Reuters. Consumers complained most frequently about account suspensions or closures, problems with cards and civil law issues.
Consumer advocates are also reporting increasing inquiries and uncertainty among customers, for example because of the turbulence surrounding the major Swiss bank Credit Suisse.
Swiss government cuts bonuses for 1,000 Credit Suisse managers
Around 1,000 managers at the major Swiss bank Credit Suisse, which has gotten into trouble, have had to forego part or all of their bonus payments. That’s what the Swiss government decided yesterday after the rescue takeover of the bank by UBS with billions in government guarantees and liquidity support from the Swiss National Bank was decided in March. The government also ordered that future bonuses at UBS be linked to risk-aware management and the non-utilization of government guarantees.