Market report: DAX shies away from the 16,000-point mark

Market report: DAX shies away from the 16,000-point mark


market report

Weak economic data from China are dampening the buying mood of investors on the German stock market. At the start of trading on XETRA, the DAX was only slightly higher at 15,909 points and even turned slightly negative in the first few minutes of trading.

The leading German index can therefore not benefit from Wall Street’s specifications. In New York, the Dow Jones Industrial was still slightly positive at the closing bell yesterday evening, with technology stocks in particular having made strong gains. The tech-heavy Nasdaq 100 was a good one percent higher, closing almost at the daily high.

But the positive impulses from Wall Street are obviously not enough to push the DAX prices above yesterday’s daily high (15,937) towards the 16,000 point mark. From a technical perspective, the German stock barometer remains trapped in a sideways phase between 15,700 and 16,000 points. In order to overcome the lethargy of the past few trading days, a leap over the 16,000 point mark would now be necessary.

Investors react with uncertainty to fresh economic data from China, which was largely disappointing. Both industrial production and retail sales came in below analysts’ forecasts in July. The struggling real estate sector also continued its slide in July, with housing starts by area down almost 25 percent year-on-year.

The CSI 300, which reflects the share prices of the largest companies on the Shanghai and Shenzhen stock exchanges, then lost 0.2 percent. The Hang Seng index of the Chinese special administrative region of Hong Kong recently fell by 0.6 percent. Real estate values ​​were once again under pressure here.

In contrast, the Japanese Nikkei increased by 0.6 percent. Japan’s economy grew by an annualized 6.0 percent in the second quarter, stronger than expected. The third largest economy, ahead of Germany, grew by 1.5 percent compared to the previous quarter.

The euro has stopped the price losses of the past few trading days and stabilized at just over 1.09 dollars. In the morning, the common currency is trading at $1.0921, up 0.1 percent.

Against the background of the recent slide in the ruble, the Russian central bank is raising the key interest rate to 12 percent from the previous 8.5 percent. The central bank announced this after a crisis meeting. At the beginning of the week, the national currency had slipped to its lowest level in almost 17 months against the dollar.

Gold prices continue to decline in early trade, falling towards the $1900 level. An ounce of gold currently costs $1905. The yellow precious metal was last listed below $ 1,900 at the end of June.

Oil prices initially changed little in the morning. A barrel (159 liters) of North Sea Brent for delivery in October cost $86.20. That was a cent less than the day before. Oil prices have been little changed since the start of the week after rising sharply in the previous weeks.

Market observers point to the stronger dollar as justification. Since crude oil is traded primarily in dollars on the world market, a strong US currency makes the commodity more expensive – which slows down demand.

The global economic slump has caused the profits of the Hamburg port group HHLA to collapse. With sales falling by 6.7 percent to EUR 727.1 million in the first six months, the group operating result (EBIT) fell by 50.3 percent to EUR 50.4 million. Earnings after taxes collapsed from EUR 43.9 million in the previous year to EUR 8.2 million.

New wind and solar parks and the takeover of the Italian Stern Energy made up for lower energy prices and less favorable weather in sales at Encavis in the first half of the year. The management confirmed the forecast for the current year and the medium-term goals up to 2027. With a minus of around a quarter over the course of the year, the share of the MDAX group is the second-biggest loser in the index of medium-sized stocks.

A patent dispute over the Corona vaccine from the Mainz-based company BioNTech is currently occupying the Düsseldorf Regional Court. The Tübingen competitor Curevac accuses BioNTech of patent infringements and wants to assert claims for damages, as a court spokeswoman announced. BioNTech rejects the accusation. The company’s work is “original”.

Amazon’s device boss Dave Limp, who is responsible, among other things, for the voice assistant Alexa, a program for Internet satellites and a robotaxi company, will leave the group at the end of the year. A successor should be announced in the coming weeks, Amazon boss Andy Jassy wrote in a message to employees.

Chancellor Olaf Scholz (SPD) has spoken out in favor of Tesla’s plans to expand the battery factory in Grünheide near Berlin. The US electric car manufacturer wants to expand the plant, which many people would not like, the Chancellor said at a public dialogue in Potsdam. “I honestly do.” It is also about retaining such companies in Germany and maintaining and expanding prosperity.

The major Swiss bank UBS can put another legal case aside. In the case of the so-called “junk mortgages” (RMBS) from the time of the financial crisis more than 15 years ago, it makes a payment of 1.435 billion dollars to the US Department of Justice (DoJ). The sum of the comparison was already deferred in earlier quarters and will therefore not affect the result.

The video streaming service Netflix is ​​taking the next step into the gaming business. A cloud service is now being tested in Great Britain and Canada, in which games can be played over the network. The aim is to put the technology for game streaming and the controller to the test, Netflix announced in a blog post. The test will initially run “with a small number” of users.

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