market report
Status: 09/20/2022 09:53 a.m
Thanks to firm US stock exchanges, the leading German index is in the plus zone in the morning. However, the momentum will not go far before the next significant interest rate hike in the USA. Concerns regarding inflation remain a burden.
The DAX offered around 12,930 points shortly following the start of trading in the morning, which corresponds to an increase of almost one percent compared to yesterday’s closing level.
Fed continues to tighten the reins
Tomorrow’s interest rate decision by the US Federal Reserve (Fed) is casting its shadow: “The stock market is currently dealing with a doubly toxic cocktail,” says Konstantin Oldenburger, analyst at brokerage house CMC Markets. “As the economy continues to weaken, central banks must do what they can to contain stubborn inflation.”
Overseas exchanges with favorable specifications
Despite the bleak outlook, US stock markets were able to post gains last night. The leading index Dow Jones Industrial closed 0.6 percent up at 31,020 points. The technology stock index Nasdaq 100 said goodbye 0.8 percent firmer with 11,953 points from trading. Asian markets also followed Wall Street higher in the morning. The Japanese Nikkei index closed 0.4 percent higher at 27,688 points. The Shanghai stock exchange was also up 0.5 percent.
China leaves interest rates unchanged
In China, the central bank has not followed the general trend towards interest rate hikes today. As expected, it kept interest rates unchanged on Tuesday. The one-year lending rate (LPR) remained at 3.65 percent and the five-year lending rate remained at 4.30 percent. With an interest rate cut last month, the central bank in Beijing helped the economy, which had been weakened by the real estate and corona crises.
Producer prices are rising at record speed
In Germany, the fear of a significant increase in inflation in the morning gets new fuel. Producer prices rose by an average of 45.8 percent, mainly because of expensive energy. This is “the highest increase compared to the same month last year since the survey began in 1949,” according to the Federal Statistical Office. From the news agency Archyde.com surveyed economists had expected a decline to 37.1 percent. Producer prices are considered to be the forerunners for the development of general inflation.
euro is recovering
The common currency is trading at $1.0034 this morning, moving back above parity with the US currency. On the commodity market, oil prices are climbing once more slightly following yesterday’s decline. A barrel of North Sea Brent costs $91.25 in the morning. Investors currently have to pay $1,673 for an ounce of gold.
DAX clearly in the plus
In the DAX, the shares of Henkel, Deutsche Bank and Continental can assert themselves with clear gains. The weakest titles in the leading index are initially the shares of Vonovia and HeidelCement
Porsche IPO in the starting blocks
With a price increase of three percent, the shares of the automobile holding company Porsche SE are DAX leaders. The subscription period for the preferred shares of Volkswagen’s sports car subsidiary, Porsche AG, begins today, the company announced last night following the securities prospectus had been published. The papers of the VW subsidiary are to be offered in a corridor between 76.50 and 82.50 euros per piece. Private investors in Germany, Austria, Switzerland, France, Italy and Spain should also be able to purchase part of it. The Holding Porsche SE holds almost a third of the shares in Volkswagen.
Henkel raises sales forecast
Thanks to good business in its adhesives division, the consumer goods group Henkel has once once more raised its sales forecast for the current year. In 2022, organic growth should be between 5.5 percent and 7.5 percent. Henkel had previously promised 4.5 to 6.5 percent. The adhesives business continued its strong organic sales growth in the third quarter. Here, Henkel now expects an increase of ten to twelve percent for 2022.
TUI almost at pre-crisis level
The travel group is confident in the winter season. While it’s still early days, “we expect our winter program to approach normalized pre-pandemic levels,” the company said. Bookings for winter 2022/23 are currently 78 percent of the level for winter 2018/19. For the fourth quarter, the Board of Management therefore assumes that positive quarterly results will be achieved for the fifth time in a row.
Mercedes-Benz wants to generate its own electricity
The car manufacturer Mercedes-Benz is planning to set up a wind farm on its test site in Emsland near Papenburg. A double-digit number of wind turbines with an output of more than 100 megawatts are to be installed on the site by the mid-2020s, the company said last night. With these systems, more than 15 percent of the annual electricity requirements of Mercedes-Benz in Germany are to be covered. The carmaker is also considering installing photovoltaic systems on the test site.
Sixt relies on e-cars
The car rental company Sixt wants to make up at least 70 percent of its fleet of hybrid or purely electric cars by 2030. By the end of 2023, it should be around twelve to 15 percent worldwide. At the end of the first half of the year, the share was around ten percent. In addition, Sixt wants to enable its customers to charge at numerous public charging stations over the course of the coming year.
