market report
Status: 11/16/2022 4:07 p.m
By the followingnoon, the DAX had increased its daily loss. After the stormy gains of the past few weeks, such a correction is not uncommon.
The rally since the beginning of October has brought the DAX over 2200 points. The leading German index has not made any real progress for three trading days, and some market participants see the time to take profits. At the moment, the DAX has lost around 1.2 percent.
However, investors quickly dismissed the moment of shock following yesterday’s reports regarding the rocket hit in the Polish border area with Ukraine. “It was correct not to react to the unconfirmed reports but to wait and see,” said Jochen Stanzl, chief market analyst at CMC Markets.
Wall Street got off to a slow start
Little support has come from Wall Street. Half an hour following the start of trading, the Dow Jones is only a few points ahead, and the technology stocks on the Nasdaq are posting slight losses. In Asia, too, the indices tended to move sideways in the morning.
ECB sees stability risks
The European Central Bank’s (ECB) semi-annual Financial Stability Report doesn’t add to the edification either. The central bank sees growing risks for financial stability in the euro area. “People and businesses are already feeling the effects of rising inflation and slowing economic activity,” said ECB Vice-President Luis de Guindos at the presentation of the report in Frankfurt. “In our view, the risks to financial stability have increased – and a technical recession in the euro area has become more likely.”
High inflation in Europe
In Italy, the cost of living rose sharply in October, but not quite as much as initially determined. The consumer price index (HICP) determined according to European standards increased by 12.6 percent compared to the same month last year. Inflation in the UK has picked up from very high levels, rising 11.1 percent year-on-year in October, according to the ONS.
Euro still above parity
Of the Euro tumbles back slightly from daily highs above $1.04 in followingnoon session. FX investors are also expecting interest rate hikes to be less severe in the US – which will weaken the US currency.
Oil price down
Oil prices are on the decline. A barrel (159 liters) of North Sea Brent is currently priced at US$ 92.13, 2.6 percent less than yesterday. Basically, the situation on the oil market is tense, recently concerns regarding a slowdown in the global economy had pushed prices down.
Mercdes Benz holds red lantern in the DAX
Company reports from China weigh heavily on Mercedes-Benz shares. With a minus of more than five percent, they are behind in the DAX in the followingnoon. Investors are irritated by the fact that the carmaker in China has drastically reduced its prices for two electric models. The tough competition in the world’s largest market for e-vehicles is increasingly weighing on sales.
Siemens Energy better than feared
Siemens Energy stock failed to hold its early gains in the DAX. The energy technology group has reported the expected loss for the past quarter. The Spanish wind power subsidiary Siemens Gamesa and the withdrawal from Russia brought the group a net loss of 647 million euros in the 2021/22 financial year (until the end of September). However, it was lower than experts and Siemens Energy itself had predicted.
Rheinmetall is setting itself higher goals
The armaments group Rheinmetall has because of the rearmament in many NATO countries set higher financial targets for the medium term. In 2025, the Düsseldorf group wants to achieve sales of between ten and eleven billion euros. The operating margin, which Rheinmetall uses to measure its profitability, is expected to rise to around 13 percent. For the current year, the MDAX company currently expects around 15 percent growth in sales from its own resources with a margin of over eleven percent.
Delivery Hero empfohlen
In the MDAX, the Delivery Hero share is at the top of the index. The British investment bank HSBC has upgraded the share from “hold” to “buy” and raised the price target from 55 to 65 euros. The food supplier has reached the tipping point and is on a straight path to profitability, analyst Christopher Johnen wrote in a recent study.
Dermapharm asked
Shares in the drug manufacturer Dermapharm are increasing in the SDAX. In the first nine months, the company increased sales by 9.6 percent to EUR 734.3 million and adjusted operating earnings (Ebitda) by 5.1 percent to EUR 239.4 million. “This puts us on track to meet our targets for the year, despite the current changed framework conditions,” says CEO Hans-Georg Feldmeier. He cited the wide range of products as the reason for the positive development.
