Market report: DAX is recovering

If there’s one thing markets don’t like, it’s uncertainty. However, with the publication of the minutes of the Fed’s last meeting, uncertainty on the stock exchanges has reached a new high. “During the so-called Fed Minutes, Jerome Powell remained vague,” explains IG analyst Christian Henke. “To the chagrin of investors, the door to further rate hikes has not yet been firmly closed.”

As far as interest rate policy is concerned, investors may have to wait until the end of September, i.e. until the next Fed meeting, to get some clarity.

This is not going down well on the stock markets. After price losses on Wall Street and the Asian stock exchanges, investors in the German stock market initially took to their heels. The DAX falls back to 15,674 points in early trading, but can then significantly reduce its price losses and even turn positive at times at lunchtime.

This means that the DAX has once again turned the corner at a crucial point. Once again, the DAX bulls (buyers) were able to defend the central support zone in the leading German index: In August, the DAX had already turned up twice in the orbit of the 15,700 point mark. But experience on the markets also shows that the more often a support is approached, the more fragile it becomes.

Positive impulses for the DAX came late in the morning from the economic front. The trade balance of the euro zone in June showed a significantly higher surplus than expected due to lower imports. Seasonally adjusted, there was a plus of 12.5 billion euros. Economists had only expected a surplus of 4.0 billion euros.

After the losses in the middle of the week, Wall Street should be slightly up again today, as indicated by US futures. The future on the leading index Dow Jones Industrial Average is currently gaining 0.2 percent, the future on the Nasdaq 100 is up 0.3 percent.

Even before Wall Street opens, investors should focus on US economic data. In addition to the weekly initial jobless claims, the leading indicators and the Philly Fed economic index are expected. The quarterly report of the US retailer Walmart is also pending.

Speculations about a prolonged period of high interest rates in the US are pushing the dollar. Dollar index rises to nine-week high. At the same time, the euro fell back to a six-week low of $1.0861.

The Norwegian krone recorded slight exchange rate gains against the euro. Norway’s central bank had previously increased the key interest rate. The monetary authorities in Oslo raised the key monetary policy rate by a quarter of a point to 4.0 percent. “If the economy develops as currently expected, the key interest rate will be raised further in September,” said central bank chief Ida Wolden Bache.

The price of gold is trending slightly higher in midday trading. Currently, 1898 dollars are paid for a troy ounce of gold. The yellow precious metal slipped below the much-noticed $1,900 mark yesterday. US interest rate speculation and the strong dollar continue to weigh on the gold price.

Oil prices have fallen somewhat. A barrel (159 liters) of North Sea Brent for delivery in October cost 83.32 US dollars in the morning. That was 13 cents less than the day before. The price of a barrel of the American grade West Texas Intermediate (WTI) for September delivery fell by 22 cents to $79.16. Market observers once again referred to concerns about continued weak economic development in China.

Against the weak market trend, Munich Re, Commerzbank and Adidas are able to assert themselves in the DAX with a plus of around one percent each. According to a report by the TV station CNBC-TV18, the shoe company Bata is in talks with Adidas about a cooperation in India. The talks are at an advanced stage and the framework for cooperation is emerging, according to informed persons.

The energy company RWE only considers investments in green hydrogen technology to be justifiable if the government also provides subsidies for them. It just doesn’t work without subsidies, it’s like in the early years of wind and solar power, said Sopna Sury, the board member responsible for the hydrogen business of the “Süddeutsche Zeitung”.

In July, around 3,200 complaints about postal service providers were received, as the Federal Network Agency announced when asked by dpa. That was about 200 more than in June and 100 more than in the same month last year. In the vast majority of cases, it is about the market leader Deutsche Post AG or its parcel counterpart DHL Paket GmbH, but the frustration is also directed at competitors.

According to TUI manager Pieter Jordaan, generative artificial intelligence (AI) will have a major impact on the tourism industry. “Those who use the technology will be faster and more productive than those who don’t,” said the travel group’s CIO. This also has consequences for end users. “It will fundamentally change the way people plan and book their trips in the future.”

Britain’s largest armaments group, BAE Systems, is taking over the aerospace division of the world’s largest beer can manufacturer, Ball. The US group, which was previously active in two sectors, is now concentrating on the business with aluminum bottles and cans for beverages and consumer goods. BAE Systems prevailed against other armaments companies and financial investors at a price of 5.55 billion dollars in cash.

Papers from the Dutch payment service provider Adyen collapse by more than 20 percent after half-year figures. The share falls to its lowest level since June 2020. Concerns about growth are spreading among investors. According to Citigroup, the pressure of competition appears to be increasing. High investments to meet the competition are likely to weigh on the operating profit margin in the longer term.

The Dutch insurer Aegon slipped into the red in the first half of the year. “Our net loss is 199 million euros and reflects the announced investments in the USA, which secure our position for future growth,” said CEO Lard Friese. In the previous year, Aegon had booked a profit of 46 million euros.

The persistently weak demand for PCs has brought the Chinese technology group Lenovo declines in sales and profits. Revenue fell 24 percent to $12.9 billion in the April-June quarter. That was the fourth consecutive quarter of falling sales. Net income attributable to shareholders fell 66 percent to $177 million.

In the first half of the year, Vienna Airport benefited from a great desire to travel and increased its profits. The bottom line is that profits climbed by more than half to 74.0 million euros, as Austria’s largest airport announced today. Sales increased by 45.3 percent to 428.1 million euros. Passenger traffic reached around 91 percent of the pre-crisis level of 2019.

The Swiss online pharmacy DocMorris reduced its losses in the first half of the year. With a drop in sales of 16 percent to 252.7 million Swiss francs, the company recorded a net loss of 58.2 million Swiss francs after a minus of 83.6 million in the previous year. After the sale of the Swiss business under the name Zur Rose, the company is in a state of upheaval.

After the boom in the corona pandemic, the weakening construction industry and currency effects are affecting the Swiss sanitary technology group Geberit. Sales fell in the first half of the year by 14.1 percent to 1.66 billion Swiss francs and the operating result (EBIT) by 6.2 percent to 453 million francs.

Cisco has disappointed the markets with its revenue forecast. According to its own statements, the US network equipment supplier expects revenues of between 57.0 and 58.2 billion dollars for the 2024 financial year. Analysts have so far assumed an average of $58.38 billion. The California-based company’s stock fell about 2 percent in after-hours trading.

According to insiders, the steel group ArcelorMittal could enter the multi-billion bidding race for the American steel group US Steel. The world’s second largest steel company is discussing a possible offer with investment bankers, several people familiar with the matter told the Reuters news agency.