market report
Status: 02/01/2022 09:52 a.m
The strong price gains on Wall Street are continuing in this country: the DAX jumps over the 15,600 point mark. After a weak start to the year, February got off to a good start on the stock market.
Thanks to strong US targets, the DAX rose by well over one percent to over 15,600 points at the start of trading. On Monday, the leading German index almost one percent up closed at 15,471 pointsn. Despite the rise at the end of the month, the DAX lost 2.6 percent in January following just missing its November record of 16,290 points at the beginning of the year.
The ECB in focus
Nevertheless, an element of uncertainty remains, because a few weeks before the foreseeable turnaround in interest rates in the USA, the Council of the European Central Bank (ECB) will inform the public on Thursday regarding the further monetary policy course of the central bank.
“The question now arises as to when the ECB will follow the example of the Federal Reserve and also turn the screw on interest rates. So far, Christine Lagarde sees no need for action in this regard,” says Christian Henke from broker IG. According to his assessment, the ECB monetary authorities will not be able to avoid the interest rate hike for too long.
Market observers at Helaba are forecasting that the ECB will have a hard time explaining itself at the council meeting. “While a gradual decline in inflation is still likely, price pressure seems to be lasting longer than first thought,” they write in their daily comment. According to current data, inflation in Germany is declining, but less than forecast.
retail problems
In relation to the economic situation in Germany, the sales of German retailers in December show that economic development remains tense. According to the Federal Statistical Office, your income fell in real terms – i.e. price-adjusted – by 5.5 percent compared to the previous month. For 2021, however, sales increased slightly by 0.7 percent.
According to the statisticians, the decline in December is probably related to the introduction of the 2G rule in many retail stores. Private consumption plays an important role in economic performance. Therefore, the sales figures are considered a good indicator of the overall situation and are usually closely watched.
Nasdaq index price rally
The specifications from the USA were inspiring for investors: the technology-heavy selection index Nasdaq 100 jumped 3.3 percent to 14,930.05 points. On a monthly basis, however, it fell by almost nine percent. In view of the expected rate hikes by the US Federal Reserve, experts assume that technology stocks will remain under pressure.
The S&P 500 rose 1.9 percent to 4515.55 points. The leading index Dow Jones went up 1.2 percent to 35,131.86 points. For January, however, there is a minus of 3.32 percent.
In Japan, the Nikkei closed 0.3 percent higher. Otherwise, several markets in the region remain closed for the Chinese New Year holiday.
What will the Fed do?
Meanwhile, Fed Governor Raphael Bostic expressed skepticism regarding one US Federal Reserve rate hike by half a percentage point. Such a move in March “is not my preferred monetary policy measure,” the district chief said. He envisioned three raises and March seems like the right time to start. Some analysts are already expecting five increases, so the players on the financial markets will appreciate these statements.
Boeing receives major order from Qatar Airways
Qatar Airways is in a clinch with Airbus, now the Arab airline is placing orders on a large scale with US rival Boeing. The companies signed a contract to purchase up to 102 machines. According to Boeing, the package includes 50 cargo versions of the new 777X wide-body aircraft and two machines from the current model series. In addition, the airline has concluded preliminary purchase agreements with the US group for 25 medium-haul 737 Max jets and options for a further 25.
According to list prices, the deal might reach a volume of 34 billion US dollars. However, heavy discounts are common for orders of this magnitude. Also, only 34 of the 777X Freighters are firm purchase agreements.
HeidelCement surprises with jump in profits
The HeidelbergCement building materials group increased its operating result last year more than analysts had expected. The result from ongoing business operations increased by twelve percent to 2.6 billion euros. Due to the flourishing construction industry, HeidelCement had already expected a strong increase in operating profits, but the analysts were surprised by the level of growth.
Siltronic takeover by Globalwafers collapsed
Taiwanese chip supplier Globalwafers cannot be taken over by the Munich electronics company Siltronic. The legal deadline for this ended on Tuesday night at midnight without the Federal Ministry for Economic Affairs and Climate Protection having granted the necessary approval. According to the ministry, there was not enough time for this.
High transport prices boost Hapag-Lloyd’s results
The Hamburg container shipping company Hapag-Lloyd benefited from the tight supply chains around the world last year. Transport prices have risen significantly thanks to very strong demand for export goods from Asia. However, the disruptions in the supply chains would also have pushed up the expenses significantly.
Earnings before interest and taxes (EBIT) jumped to around 9.4 billion euros last year. That is more than seven times as much as in the previous year. Sales increased by almost three quarters to 22.3 billion euros.
Solid profit at UBS
Brilliant business in the fourth quarter brought the Swiss bank UBS a surprisingly strong annual result. The bottom line was a profit of almost 7.5 billion dollars for the year as a whole. That is 14 percent more than in the previous year and more than experts expected on average. The shareholders are to participate in the success with a dividend increased from 37 to 50 cents per share. In addition, UBS wants to buy back its own shares worth up to five billion dollars this year.
Sony counters Microsoft
After Microsoft went out to buy the makers of “Call of Duty”, Sony countered with its own takeover plan. The Playstation provider wants to swallow the Bungie studio, which developed games like “Halo” and “Destiny”. The deal is worth a total of $3.6 billion (€3.2 billion), the companies said.
Sony is spending significantly less money than Microsoft: The Xbox group wants the game company Activision Blizzard to spend a total of 68.7 billion dollars. In addition to “Call of Duty”, Activision Blizzard also comes with “World of Warcraft”, “Diablo” and the smartphone game “Candy Crush”.
