Over 15,500 points: happy end of the week in the DAX

market report

Status: 03/03/2023 7:30 p.m

On Friday, investors became more willing to take risks and grabbed shares. The DAX also recorded solid price gains on a weekly basis. There is also optimism on the US stock exchanges.

The DAX closed with a premium of 1.6 percent to 15,578.39 points. From the point of view of the chart technicians from HSBC, the leading German index has taken an important step: they saw a signal generator at the previous week’s high of 15,553 points. They believe that jumping above this level will put the DAX back on the road to success.

“Upward trend is intact”

Market analyst Jochen Stanzl from the trading company CMC Markets is also optimistic: “The DAX has turned the corner once more,” says the expert. He spoke of an important sign of confidence in the current strength of the market, the upward trend is intact.

Positive news from China had previously given the stock markets a tailwind: the Caixin purchasing managers’ index for the service sector was better than expected in February. “The report surprised on the upside, which may in part have helped sentiment improve towards the end of the week,” said Craig Erlam, market watcher at brokerage Oanda.

How strong will China’s growth be?

The National People’s Congress begins in China on Sunday, where, among other things, the economic goals are set. “The great hope is that China’s economy will now pick up speed, which might also help export-dependent German companies,” said Jochen Stanzl, an analyst at broker CMC Markets.

Chief strategist Robert Greil from Bank Merck Finck is of the opinion that China will target economic growth of up to six percent for the current year. “Six percent would be very ambitious, I think a range of five to six percent is more likely.” Ultimately, however, China, like the USA and Europe before it, should benefit from catch-up effects of the population in the further course of the year, which should give economic output an additional boost in 2023.

Update economy from 03.03.2023

Anne-Catherine Beck, HR, 3/3/2023 9:54 am

Wall Street started positively

The US stock exchanges are also gaining ground, although not as vigorously as the markets in Europe. The Dow Jones rose 0.4 percent to 33,150 points. On a weekly basis, the leading index gained around one percent. The S&P 500 gained 0.8 percent to 4014 points. The Nasdaq 100 technology exchange rose 1.1 percent to 12,180 points.

Statements by US currency watchdog Raphael Bostic provided some relief. The chairman of the Atlanta branch of the US Federal Reserve said yesterday that he favors a slow and steady stance with rate hikes of 25 basis points as the impact of higher rates may not be felt until spring. In addition, bond market yields have fallen once more following the recent rally.

Apple supplier Foxconn has plans for India

The Taiwanese Apple supplier Foxconn wants to open a large production facility in India. It should create 100,000 jobs in ten years, said the IT Minister Rama Rao of the state of Telangana. The plant is to be built in Telangana. Foxconn boss Young Liu said on Friday regarding the speed with which projects can be implemented in the Indian state, according to the “Indian Express”: “The speed of Telangana gave me the confidence that with the work in Telangana we will very likely generate the income from Foxconn can double.

Will Rheinmetall be included in the DAX?

At the end of the week, Rheinmetall shares came into focus on the German stock market. The armaments group and auto supplier is likely to join the first stock exchange league in March. The stock market value of the armaments group and car supplier, measured by the freely tradable share share, makes it possible.

According to index experts, with its so-called “free float market capitalization”, which has meanwhile increased to around 10.3 billion euros, it is ousting the dialysis specialist Fresenius Medical Care from the DAX. In addition, there are likely to be further changes of place in the MDAX, TecDAX and SDA. Deutsche Boerse will comment tonight following the US market close.

Financial turnaround accuses DWS of greenwashing

The citizens’ movement Finanzwende accuses Germany’s largest asset manager DWS of having bought shares in fossil companies for more than 850 million dollars for its green funds in 2022. DWS has thus been the frontrunner among European green funds. “The data shows that DWS is at the forefront when it comes to greenwashing,” said Finanzwende officer Magdalena Senn.

Infineon acquires Canadian GaN Systems

The chip group Infineon is expanding its business with innovative power semiconductors for electrical applications and is taking over the Canadian manufacturer GaN Systems for 830 million US dollars. The purchase will be financed from the available liquid funds. GaN Systems is headquartered in Ottawa, Canada and employs more than 200 people. The approval of the authorities is still pending.

VW increases profits

Even in the crisis year of 2022, with the Ukraine war, energy shortages and delivery problems, the Volkswagen Group still earned a little more. As Europe’s largest car group announced following a supervisory board meeting, earnings following taxes improved slightly by almost 3 percent to around 15.84 billion euros.

If one includes special effects such as the exit from the robot car start-up Argo AI or the interest rate development, the operating profit increased to 22.12 billion euros, an increase of a good 15 percent. The group was also confident for 2023.

Mercedes starts construction of battery recycling plant

Mercedes-Benz wants to recycle battery systems from electric cars in the future and is starting to build its own recycling factory in Kuppenheim, Baden-Württemberg. According to the company, the foundation stone for the plant was laid this morning. A capacity of 2,500 tons of lithium-ion batteries per year is planned.

ProSiebenSat.1 is threatened with a temporary MDAX exit

The delay in presenting the annual financial statements might cost the media group ProSiebenSat.1 its place in the MDAX, at least temporarily. According to the rules of the German stock exchange, companies must submit their annual report within four months of the end of the relevant business period. The company has until the end of April. According to a company spokeswoman, it is still unclear how long the submission will be delayed.

Lufthansa returns to profitability

After massive losses during the corona pandemic, Lufthansa made a profit once more last year: net profit was 791 million euros. On average, however, analysts had expected significantly more at 875 million euros. Meanwhile, Lufthansa boss Carsten Spohr has announced rising ticket prices for the current year.

Hochtief subsidiary builds battery factory in USA

The construction group Hochtief is involved in the construction of a battery factory for electric cars in the USA. The project of the Japanese manufacturer Panasonic Energy in De Soto in the state of Kansas has an investment volume of four billion US dollars. The Hochtief subsidiary Turner Construction is building the large-scale plant with a partner, which is scheduled to start production in 2025.

archyde news company Ströer on course for growth

The space marketer Ströer increased its sales and earnings last year. The adjusted operating result (EBITDA) rose by five percent to 541 million euros, sales climbed by nine percent to 1.77 billion euros. Ströer also benefited from strong growth in digital out-of-home .

PVA Tepla founder leaves completely

The founder and main shareholder of the technology company PVA Tepla wants to sell his entire remaining block of shares. PA Beteiligungsgesellschaft, controlled by Peter Abel and his family, is offering institutional investors up to 13.6 percent of all outstanding shares in PVA Tepla.

Dell excites investors with numbers

Computer manufacturer Dell exceeded analysts’ expectations in the past quarter. Although the proceeds fell in the fourth quarter as of February 3rd by eleven percent to 25.04 billion dollars; however, they were above the market consensus. Excluding special items, Dell earned $1.80 per share, versus $1.63 expected.