US reporting season is approaching: DAX postpones recovery

According to market observers, the DAX is likely to start trading today with a clear decline. The trend on the other world exchanges is also pointing downwards.

After a reasonably stable start to the week, the DAX is threatened with another setback today: the broker IG estimated the German benchmark index 0.8 percent lower to 15,085 points around two hours before the start of trading.

Yesterday the DAX went out of trading with a slight minus of 0.1 percent at 15,199 points. In addition to the well-known factors such as monetary policy, the state of the economic recovery, the situation on the Chinese real estate market and ongoing inflation concerns, the upcoming reporting season will once again be an important topic. This week in the US, the banks JPMorgan, Bank of America, Morgan Stanley, Citigroup and Goldman Sachs will present their balance sheets.

According to the portfolio manager Thomas Altmann from QC Partners, some investors would try to get into the market cheaply in the event of a setback. The others tried to come out as expensive as possible when the share price rises. “The further direction is open shortly before the reporting season for the third quarter starts.

“The economies seem to be getting into a difficult phase and we think that investors and companies will be watching closely how the economic data and earnings results are,” the ANZ analysts write in a press release.

Wall Street’s submission is weak: the Dow Jones Index and the S&P 500 each lost 0.7 percent. The technology exchange Nasdaq fell 0.6 percent. “Investors are cautious about the upcoming reporting season,” said Tim Ghriskey, investment strategist at the brokerage firm Inverness Counsel.

When it comes to energy prices, on the other hand, things are going in the other direction: the price of US WTI oil rose yesterday at times by more than three percent to 82.18 dollars per barrel (159 liters), the highest level since the end of 2014. The Brent variety became more expensive to a three-year high of $ 84.60.

Prices are currently falling again, but experts do not expect the rally to end anytime soon. “We see a very strong demand for energy in Asia and Europe before the coming cold season. As a result, oil prices will continue to rise in the near future,” said Jim Ritterbusch, head of energy consulting firm Ritterbusch and Associates.

The energy crisis is also an important issue in Asia: It rekindled investors’ fear of inflation and clouded the mood ahead of the balance sheet season. The Nikkei index, which comprises 225 stocks, is 0.7 percent lower over the course of trading, while the broader Topix index also drops 0.7 percent. The Shanghai stock exchange is also falling, and the index of the most important companies in Shanghai and Shenzen is also falling.

Sustained high demand for products such as glass ampoules, syringes and pharmaceutical plastic packaging continues to provide the special packaging manufacturer Gerresheimer with a tailwind. Meanwhile, high costs put a strain on profit margins. In the third quarter, sales rose by 9.4 percent year-on-year to 382 million euros.

The operating earnings before interest, taxes, depreciation and amortization (adjusted Ebitda) fell by 0.2 percent to 74.8 million euros. The reason given by management was the increased cost of raw materials such as plastic granulate, electricity and gas.

After its capital increase, Lufthansa repaid part of the billions in government aid from Germany as planned. This concerns the claimed part of the first silent contribution of the Economic Stabilization Fund (WSF) in the amount of 1.5 billion euros. By the end of the year Lufthansa wants to repay the second silent participation over one billion euros and cancel the unused part of the first contribution.

The IT service provider Cancom wants to buy back a good nine percent of its shares from the market. The company, which is listed in the MDAX, announced that it is planning to acquire up to 3.5 million shares. This corresponds to up to 9.1 percent of the current share capital. The buyback should be completed by October 19, 2022 at the latest.

Based on the Xetra closing price on Monday of EUR 49.57, the securities would have a total value of more than EUR 170 million. Cancom may, according to the information, withdraw the repurchased shares or use them for other permissible purposes.

The Swiss fragrance and flavor manufacturer increased sales in the first nine months by 5.8 percent to 5.07 billion Swiss francs. On a comparable basis, i.e. adjusted for currency and acquisition effects, the increase was 7.7 percent. Among other things, the world market leader benefited from the recovery in the luxury perfumes segment, with the segment growing by 28.6 percent. Givaudan is sticking to its goal of annual sales growth of four to five percent on a like-for-like basis. The Symrise rival only publishes profit figures for the first half of the year and at the end of the year.