market report
Investors seized on stocks ahead of the release of the monthly U.S. labor market report, which is important for future U.S. interest rate policy. If the jobs data gets too strong, price gains could narrow again.
The DAX was up just over 1 percent at midday and was again above 16,000 at 16,015. That opens up further price potential: If the DAX hits the dot today, it could continue to rise to 16,100, predicts ING’s technical argument expert. Even if the DAX stands above 15,900, it is more likely that the price will continue to rise.
On the one hand, avoiding a U.S. default is fundamentally supportive. On the other hand, continued speculation about an imminent pause in US interest rate hikes also stimulated the stock market. U.S. futures, currently pointing to a positive start for Wall Street stocks, also contributed to positive sentiment.
However, Robert Halver, market expert at Baader Bank, points to the seasonality of the market, which prompts caution: “In addition to the ongoing economic downturn, there is now a pickle season until August/ Around September. At first Blick, she can not only slow down investors’ buying enthusiasm. “She also invites you to take profits to secure the performance achieved so far this year,” the expert emphasizes. In fact, mid-term consolidation is not uncommon and healthy. However, according to Halver, the setbacks are insignificant.
Initially, interest rate policy in the United States remains a decisive factor for price developments: “While debt disputes in the United States are no longer an issue, the central bank is increasingly coming back into focus,” says the expert at Helaba. “A lot is likely to depend on how today’s labor market report turns out,” a market watcher assessed. The US monthly employment report will be released at 2:30 pm today.
Pierre Veyret, a technical analyst at brokerage ActivTrades, said: “The data could significantly increase market volatility.” The better-than-expected data could be “bad news” for stock traders because it provides the Fed with more Room to tighten monetary policy to address the issue Continue to fight inflation. “On the other hand, a worse-than-expected data could significantly increase bets on a dovish Fed policy reversal and boost risk appetite,” he said.
Markets are now pricing in a 20% chance the Fed will raise rates by 25 basis points this month, compared with 50% a week ago, according to the CME FedWatch tool. “Reduced concerns about interest rates should actually support equities, unless at the same time worries about the economy increase again,” the Helaba experts concluded.
Investors are also hopeful that the euro zone will suspend interest rates soon. In the view of ECB President Fabio Panetta, the ECB is already close to peak interest rates. “My feeling is that we are not at the end of the rate hike cycle, although we are not far from it,” he told Le Monde. Fight inflation by keeping interest rates high for as long as necessary.
Inflation in the euro area has declined recently. But is that enough? “The ECB will welcome lower inflation, but it won’t be enough to pause rate hikes,” said Sebastian Wismara, senior global macro economist at BNY Mellon Investment Management. Vismara said the downward trend in core inflation was still in its infancy, there was still a risk that core inflation in the services sector would pick up again, and the euro zone labor market remained tight.
Property values will be on the road to recovery by the end of the week. Vonovia, TAG Immobilien, Aroundtown and LEG Immobilien grew faster than average. The industry has been particularly affected by rising interest rates and skyrocketing construction costs of late. Many stocks were further dampened by the fact that ECB President Christine Lagarde yesterday emphasized the importance of further rate hikes, according to one trader. Shares of Vonovia and LEG Immobilien have fallen more than 20% since the start of the year.
Czech billionaire Renáta Kellnerová has increased her stake in the ProSiebenSat.1 media group. According to the announcement, PPF Group, which it controls, increased its stake to 15.04%, including financial instruments. PPF Holding has 11.6 percent of the voting rights. PPF is the second largest shareholder in ProSiebenSat.1 after MediaForEurope (MFE). The group, controlled by the family of former Italian prime minister Silvio Berlusconi, owns nearly 30% of Unterfoehringer’s shares, including financial instruments.
In the controversy over the lag in its own mobile network construction, 1&1 can be said to be a phased victory. The Bundeskartellamt announced it would review whether the company would be held back by rival Vodafone and its stake in radio tower Vantage Towers. “We will examine carefully whether there are good reasons for delaying the supply of antenna sites for 1&1,” said Andreas Mundt, head of the cartel office.
Electronics retailer Ceconomy hopes to become more profitable by mid-century. The parent company of Mediamarkt and Saturn has announced that adjusted EBIT is expected to increase to more than 500 million euros by the 2025/26 financial year. This compares to: EUR 197 million in 2021/22. Gross margins and free cash flow are also expected to improve. The aim is to significantly increase the sales of online transactions. In addition, the Mediamarkt and Saturn stores will be fully modernized and serviced expanded.
U.S. rival Lululemon is now drawing investors’ attention to German sporting goods makers Adidas and Puma. Market watchers pointed to strong numbers and increased prospects for Lululemon. The company, known for its yoga apparel, reported strong first-quarter results and offered an outlook that topped expectations.
Shortly before Apple’s imminent launch of the data glasses, Meta boss Mark Zuckerberg announced the new Quest glasses coming in the fall. He emphasized that the headset combines digital objects in the user’s field of view with the real environment.
According to media reports, this should also be the core function of Apple glasses. According to media reports, the price of the Apple device could reach $3,000. Zuckerberg announced that the Quest 3 will cost around $500.