market report
Investors on the German stock market remain in a buying mood. Today, the DAX could improve on the record it set just yesterday. The chances of further price gains are also good in the medium term.
The DAX is likely to start the last trading day of the week with slight gains. The broker IG estimates the German stock market barometer to be 0.2 percent higher at 19,277 points – and thus at another record level. “Sentiment is undeniably bullish,” commented Stephen Innes of SPI Asset Management.
After several unsuccessful attempts in the past few days, the DAX easily surpassed the resistance at 19,000 points yesterday and set a new historical record at 19,253 points.
At the end of trading, the leading German index claimed a price gain of 1.7 percent to 19,238 points. The DAX turned on the turbo and closed comfortably above the 19,000 point mark, “which from a technical point of view speaks for a continuation of the upward trend,” said analyst Konstantin Oldenburger from broker CMC Markets.
In the short term, the “overbought” market situation calls for caution. But in the medium to long term, the stock market traffic lights will remain green in view of the loose monetary policy on both sides of the Atlantic. From November at the latest, a tailwind from seasonality is likely to be added – from a statistical perspective, this is when the “best six months” on the stock market begin.
Support for the DAX also comes from Wall Street. The AI fantasy blossomed there again yesterday. The chip manufacturer Micron created a good mood with surprisingly strong figures and an optimistic outlook.
The Dow Jones index of standard stocks closed 0.6 percent higher at 42,175 points. The technology-heavy Nasdaq advanced 0.6 percent to 18,190 points. The broad S&P 500 gained 0.4 percent to a closing record of 5,745.
A variety of economic data is on the agenda in the USA this afternoon. Probably the most important of these is the PCE price index, the US Federal Reserve's preferred inflation measure. This should once again cause tension on the markets shortly before the weekend.
Strong guidelines for DAX trading are once again coming from the Asian stock markets this morning. The joy there about the monetary policy economic stimulus in China continues. The Shanghai stock exchange is currently up 2.1 percent, while in Hong Kong the Hang Seng is gaining 3.6 percent. The Japanese Nikkei is 1.0 percent higher shortly before the close of trading in Tokyo.
The dollar shows slight strength in Asian foreign exchange trading. At the same time, the euro fell 0.1 percent to $1.1165. The troy ounce of gold fell 0.1 percent to $2,669. The day before, the yellow precious metal had set a new record high at $2,685. Gold has clearly benefited recently from falling US interest rates and the falling dollar.
Hella is attracting attention on the German stock market. The headlight specialist has lowered its outlook for the current financial year due to the poor situation in the automotive industry. Adjusted for currency and portfolio changes, sales are now only expected to be between 7.9 and 8.1 billion euros. The Westphalians also lowered their forecast for the operating margin.
After the automotive supplier ZF, the Franconian automotive and industrial supplier Schaeffler has now also discussed significant job cuts. As a result of the upcoming merger with the electric drive specialist Vitesco, certain personnel positions could become unnecessary, Schaeffler CEO Klaus Rosenfeld told “Wirtschaftswoche”.
