Market Report: The DAX is treading on water

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Market report

Status: 01/25/2023 09:32 AM

The leading German index can’t really pick up steam given the mediocre specs out of the USA in the morning. Reporting season sometimes causes violent price movements. After all, the DAX index can maintain its level.

With 15,090 points, the German stock market index was listed shortly after trading started almost at the close of yesterday’s XETRA. The Tour’s 15,000-point mark is still at risk of being broken.

waiting for the ifo index

“So far, the DAX has managed to withstand a significant setback. However, there is a lack of positive momentum for another price increase,” says analyst Thomas Altmann of QC Partners. Investors may also have waited for their commitments regarding the Ifo Business Climate Index, which is due for release in the morning. Analysts see the measure of mood at 90.2 in January after 88.6 in the previous month – this would be the fourth consecutive increase.

The specs are somewhat mixed

German retail demands mixed in the morning. On Wall Street, flooding of corporate balance sheets has sometimes caused frantic price movements. The Dow Jones index of standard values ​​closed 0.3 percent in the evening at 33,734 points. The Nasdaq Technology Index lost 0.3 percent to 11,334 places. Stock markets in Japan continued their upward movement in the morning. The Nikkei 225 index closed up 0.4 percent at 27,395 points. Stock markets in China, Hong Kong and South Korea remained closed due to the Chinese New Year celebrations.

Construction industry with fewer orders

The signals from the German economy could not lift the spirits in the morning. After adjusting for price increases, incoming orders in the German construction industry fell 5.6 percent in November compared to October. This was announced by the Federal Statistical Office in the morning. Compared to November 2021, orders decreased by 12.7 percent in real terms. Including (nominal) price increases, however, the number of orders was 2.0 percent higher than the previous year’s level at a volume of €7.4 billion due to a surge in construction prices. High construction prices and high interest rates negatively affect demand.

The euro is still in an upward trend

Statements from the European Central Bank (ECB) that more interest rate hikes are pending in the Eurozone serve to boost the common European currency. In the morning, the Euro is trading at $1.0888, continuing its bullish trend that has lasted so far for several weeks.

Oil storage data overview

In the oil market, market participants are looking for new storage data from the United States today, which often moves prices. Inventories have increased significantly in recent weeks. Last night, the American Petroleum Institute (API) industry association reported another rally, but not as strong as in the previous weeks. In the afternoon, the Energy Department will release its weekly data. The price of a North Sea Brent barrel is currently $86.50, up almost half a percent from yesterday.

Little movement in DAX

On DAX, the volatility of the course is limited in the morning. Brenntag chemicals retailer is the best value in early trading. HeidelCement papers are also on the rise. At the high end of the index scale, Deutsche Bank shares were listed with a loss of around 1.5 percent.

Airbus with fewer helicopter orders

Dax Airbus Group delivered more helicopters last year. A total of 344 machines have been delivered to customers, up six from 2021, according to the company. However, in a net of 362 machines, orders received were lower than the previous year’s level. Market recovery continues. The military business in particular is growing. The company intends to provide details for the full year on February 16.

MTU wants to build electric aircraft turbines

Munich engine maker MTU Aero expects electric passenger planes in the mid-2030s. Electric mobility in flight is based on a fuel cell, which uses hydrogen and oxygen to generate electricity for turbines, according to what CEO Lars Wagner told Münchener Merkur. “We’re aiming for fuel cell aircraft that can carry 50 to 100 passengers over a range of 1,000 nautical miles – that’s 1,800 kilometres. That’s enough for about three-quarters of all European routes,” says Wagner.

Analyst recommend Allianz

Analyst Jefferies raised the price target for Allianz shares from 230 to 250 euros and left the rating at “Buy”. Analyst Philip Keate wrote in a study that currency effects are likely to affect subsidiary Pimco’s business in the fourth quarter, expressed in euros. This marks the end of a difficult year. But looking to the future, improvement is on the horizon.

ProSiebenSat.1 buys movies

Investors can also focus on papers from the ProSieben and Sat.1 broadcast series in the morning. The company has inked a major film and series rights deal with entertainment giant Sony. Thus, the group’s platforms will have access to current cinema blockbusters, new series and many old productions from Sony Pictures, Seven.One Entertainment Group announced today in Unterföhring.

New US lawsuit against Google

The US government has sued internet company Google for anti-competitive behaviour. Last night, Attorney General Merrick Garland said Google’s dominance in digital advertising is hurting customers and advertisers. The company wants to use its position of strength to buy off competitors and force advertisers to use Google products by making it difficult to access competing offerings. Eight US states joined the lawsuit, filed in Virginia.

Microsoft with less profit

Figures from software giant Microsoft caused a stir yesterday evening after the US stock market closed. The group posted much lower profits at the end of the year due to higher inflation and fears of a recession. In the three months ending in December, net income fell 12 percent year-on-year to $16.4 billion. Sales increased 2% to $52.7 billion. Overall, the quarterly numbers were in line with expectations, and the stock was higher in after-hours trading.

TI feels weak demand

US chip group Texas Instruments felt a drop in demand. Sales fell in the last quarter, compared to the same period last year, by three percent, to reach nearly $ 4.7 billion, as the company announced last night. Net income fell eight percent to $1.96 billion. Texas Instruments was also cautious in the first quarter: The chip company expects a further decline in sales compared to the previous three months and forecasts between $4.17 billion and $4.53 billion.

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