2023-08-24 15:53:00
market report
Both on the German stock market and on Wall Street, the strong balance sheet of the US chip group Nvidia only temporarily boosted prices. The central banker meeting in Jackson Hole dampened the euphoria.
In view of the important central banker conference in Jackson Hole, investors on the stock exchanges are holding back today – despite the excellent business figures of the US chip company Nvidia. Investors are cautious ahead of tomorrow’s speeches by Fed Chair Jerome Powell and ECB Chair Christine Lagarde. They are hoping for signals as to how monetary policy will continue.
“A balanced speech is expected that does not shut the door to a further rise in interest rates,” explains market expert Robert Rethfeld from Wellenreiter-Invest. “The probability of a rate hike on November 1 is not inconsiderable 42 percent.”
After Nvidia’s strong balance sheet had given the DAX a brilliant start in the morning and it rose to 15,897 points, the price gains crumbled by midday. Gradually it went further down. Ultimately, the leading German index closed the market down almost 0.7 percent at 15,621 points.
With the clear jump below the 15,800 point mark, the technical picture in the DAX has clouded over somewhat. The upward movement that has been running since Friday, which at times catapulted the German stock market barometer up by more than 400 points, is now showing its first flaws.
Nvidia was also only able to give a short-term boost to the US stock exchanges. After a positive start, they quickly turned negative. The Dow Jones recently fell by almost 0.5 percent to 34,309 points. The market-wide S&P 500 was down 0.7 percent. The tech-heavy Nasdaq 100 turned negative and even fell 1.23 percent. At the start of trading, he had gained 0.6 percent.
Today’s economic data in the United States also had no clear direction. The development of initial jobless claims showed that the job market remained very robust, which fueled new speculation on the market regarding the Fed’s interest rate plans. Durable goods orders in July, on the other hand, unexpectedly fell sharply following four consecutive increases.
Among the stocks, Nvidia stock drew the most attention. It briefly surpassed $500 before profit-taking pushed the stock back into the $485 range — still up regarding 3 percent.
Analysts and investors were positively surprised by the chip manufacturer’s record figures. The beneficiary of the artificial intelligence mega trend doubled its sales to $13.5 billion in the past quarter. Since the beginning of the year alone, the price of the paper has more than tripled.
Oil prices are down today. A barrel (159 liters) of North Sea Brent for delivery in October cost $82.92 – down 0.4 percent. Oil prices continue to be weighed down by demand concerns. The Chinese economic engine is currently stuttering, and economic data from the euro zone and the USA were disappointing yesterday.
The euro exchange rate has given way today. In the followingnoon, the common currency cost $ 1.0842. Experts expect that before the key bankers speak tomorrow, there will be little movement on the foreign exchange market. The dollar thus cost 0.9225 euros.
Despite Wednesday’s weak data on the US economy, the majority of analysts remain convinced of the strength of the dollar, said analyst Ricardo Evangelista from broker Activtrades. “Few expect Jackson Hole to provide any hints of an end to the Federal Reserve’s monetary tightening stance.”
Meanwhile, the Turkish lira has risen sharply. In view of the very high inflation, the Turkish central bank has raised the key interest rate much more than expected. The key interest rate was increased by 7.5 percentage points to 25.0 percent. Economists had only expected 20 percent. The lira hit its highest level once morest the euro and dollar since late June, but recovered only a very small part of its losses since May.
Tesla’s only e-car factory in Europe to date will be connected to the public railway network with its own train shuttle. The company announced today that the new shuttle will run between Erkner train station (Oder-Spree district) and the factory premises in Grünheide in Brandenburg from September 4th. The train will commute almost 60 times a day from Monday to Friday and thus bring more than 1,500 employees directly to the factory premises free of charge at the shift change alone.
The US aircraft manufacturer Boeing has to deal with further production errors with its most popular model 737 Max. Boeing’s largest supplier, Spirit Aerosystems, is said to have improperly drilled holes in a component that is important for maintaining air pressure in the cabin. “During factory inspections, we found mounting holes in the aft pressure bulkhead of certain 737 aircraft that did not meet our specifications,” Boeing said in an email. Now Boeing’s delivery plans for the medium-haul jet might once more be in jeopardy.
The Deutsche Telekom subsidiary T-Mobile US wants to cut thousands of jobs across the country and replace them with artificial intelligence, among other things. The company announced that almost 5,000 jobs, especially in the corporate organization, were affected. That is a little less than seven percent of the total workforce.
The shortage of semiconductors has hit Europe’s largest carmaker Volkswagen hard since the end of 2020 – the group is now cautiously giving the all-clear. There are currently no more acute bottlenecks, said Purchasing Director Dirk Große-Loheide. “In the last six to eight months we haven’t lost a single vehicle in production because of semiconductors.”
In the MDAX, the shares of CTS Eventim have increased by a good three percent. The ticket marketer is more optimistic for 2023. In the first six months, CTS Eventim has managed a leap in growth thanks to the increased demand for music and sports events and has broken the billion-dollar sales mark for the first time in half a year.
After the recent takeover of the US optician SVS Vision, the optician chain Fielmann wants to update its business outlook. “As soon as the date of the closing of the US acquisition is set, we will update our forecast for the full year,” announced the listed family company. Approval from the authorities is expected in the coming weeks.
Perfumery chain Douglas creates more sales and operating profit ahead of a possible IPO. In the third quarter of the 2022/23 financial year, Douglas increased its adjusted operating result (Ebitda) by 11.9 percent to EUR 154.3 million. According to insiders, Douglas might make the leap onto the trading floor in 2024.
The airline Norwegian Air has earned less as a result of increased costs. In the April-June period, operating profit (EBIT) fell to 627 million kroner (54.5 million euros) from 1.36 billion last year, while analysts had expected 726 million. However, company boss Geir Karlsen emphasized that he had secured 50 percent of the fuel for the rest of the year at “very attractive prices”.
The US automaker General Motors wants to cut around 940 IT jobs in Arizona and thus almost completely stop its IT activities in the state for cost reasons. The affected employees might apply for vacancies in other states, the company said. GM had already announced in January that it would reduce running costs by at least two billion dollars, including through downsizing.
With Esmark withdrawing, the way is clear for Cleveland-Cliffs to acquire US Steel. The industrial holding Esmark announced yesterday (CEST) that it did not want to submit an offer. Chairman and CEO Jim Bouchard cited support from the Cleveland Cliffs union as the reason.
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