market report
Status: 09/16/2022 09:48 a.m
Concerns are clearly dominating the German stock market shortly before the weekend. The leading index DAX opened in the red, now the fourth loss-making trading day in a row is imminent.
Shortly following trading began, the DAX slipped to 12,766 points, a drop of one and a half percent. The leading German index had already lost 0.6 percent yesterday. The DAX is now more than 1000 points away from the intermediate high in mid-August.
Investors’ concerns are fueled by the latest recession warnings from the International Monetary Fund (IMF) and the World Bank – not even encouraging economic data from China can currently brighten the mood in the long term, said investment strategist Michael Hewson from brokerage house CMC Markets. Retail sales in the People’s Republic rose surprisingly sharply in August by 5.4 percent year-on-year. The increase in industrial production was also higher than expected at 4.2 percent.
Big expiration day on the stock market
In addition, the focus is on the great decline on the futures exchanges. “Today’s expiry of options on the DAX might be particularly interesting and trend-setting,” explained portfolio manager Thomas Altmann from QC Partners. “The 13,000 mark was recently the hard-fought mark between bulls and bears. With today’s expiry date, the options market might have a say in the future direction of the DAX.”
Technology stocks in particular under pressure
But initially the weak specifications are still weighing on the courses. Yesterday, the major stock indices on Wall Street and the Nasdaq posted price losses, with technology stocks in particular suffering. The Dow Jones index lost 0.6 percent to 30,961 points. The broad S&P 500 lost 1.1 percent to 3,901 points. The Nasdaq Composite Index fell 1.4 percent to 11,552 points.
Interest rate concerns once once more dominated events. Especially following the recently surprisingly high inflation figures, investors are nervous regarding the interest rate decision by the US Federal Reserve next Wednesday. The Federal Reserve (Fed) is firmly expected to hike interest rates once more by 0.75 percentage points, but a full point does not seem out of the question.
US Treasury yields rose across the board yesterday, with yields on the two-year note climbing to their highest levels since 2007.
Exchange rate losses in Asia
In the wake of the recent price losses on Wall Street, the Asian stock markets also came under selling pressure. The Japanese Nikkei index fell today by 1.1 percent to 27,577 points and the Shanghai stock exchange by 1.7 percent to 3,145 points.
Real estate shares under the magnifying glass
Studies on real estate stocks are now a topic of conversation on the Frankfurt Stock Exchange. Many price targets have been lowered. In the interest rate turnaround, real estate values are currently in a head-to-head race with retailers for the weakest sector of the year. Amid rising interest rates and hard times for consumers, German real estate values are cheap for good reason, explained Barclays expert Sander Bunck. Meanwhile, JPMorgan’s Neil Green braced for a potentially prolonged drought for the industry.
DaimlerTruck demands more charging stations
Daimler truck boss Martin Daum is calling for more action from the federal government with regard to the infrastructure for electromobility: “The federal government currently has many plans and announcements, but little concrete,” said Daum of the German Press Agency. “What comes out in the end, what is actually implemented and at what speed? The will is there, the action is still missing.” A 300-kilowatt charging station is being celebrated today, which will be inaugurated somewhere. “But we need 700 kilowatts or one megawatt,” said Daum. But there is nothing of this magnitude yet.
Ströer weighed down by downgrade
A negative analyst comment sent the shares of the space marketer Ströer plummeting. The experts at Deutsche Bank have downgraded the title from “buy” to “hold” and lowered the price target to 62 from 80 euros.
FeDex drags Deutsche Post down
DHL rival FedEx is withdrawing its outlook for the full year due to the economic slowdown. In the second quarter, business conditions are likely to deteriorate further despite ongoing cost-cutting measures, the US company said. The group also announced aggressive savings. Capital expenditures for 2023 are expected to fall to $6.3 billion from previously forecast $6.8 billion.
The company, like its domestic rival UPS, is also considered a barometer of the US economy, as it transports goods from a wide variety of industries. FedEx shares fell more than 16 percent in following-hours trading in response to the bad news. The papers of the DHL mother company Deutsche Post also give way in tow.
