market report
The DAX may restart with a new stock trading week. With interest rate decisions from the Federal Reserve and the European Central Bank, a new impetus is on the horizon, and investors appear to be eagerly awaiting it.
After a period of little dynamism in German equities, things are set to get exciting again in the new stock trading week with two top central bank decisions on the agenda. The Federal Reserve will make a rate decision on Wednesday and the European Central Bank (ECB) on Thursday.
The DAX continued its early advance at highs, with broker IG’s assessment of the 40 German standard up 0.4% in one hour to 16,012. The leading German index was recently stuck at the 16,000 chart mark.
Market participants said that whether the stock market barometer can continue to break through the integer mark in the next few days, and may even touch the historical high of 16332 points, mainly depends on the interest rate meeting of the Federal Reserve and the European Central Bank. While investors at the ECB firmly expect a further 0.25 percentage point rate hike, there is still plenty to say about the Fed’s pause in rate hikes.
However, another rate hike by the Fed cannot be entirely ruled out; investors were caught off guard last week by surprise hikes by the central banks of Australia and Canada.
The U.S. central bank decision will also be particularly exciting as new inflation data will only be released the day before. These could have a major impact on the decision-making process of monetary authorities around Fed Chairman Jerome Powell.
The prospect of a new week of major central bank rate decisions kept Wall Street investors cautious over the weekend. The Dow Jones Standard Value index closed up 0.1 percent at 33,876 on Friday. The tech-heavy Nasdaq rose 0.2% to 13,259. The S&P 500 rose 0.1 percent to 4,298.
The upcoming interest rate meeting also limited classes on Asian bourses. The Bank of Japan will also decide on its future monetary policy on Friday. Japan’s leading index of 225 stocks, the Nikkei , rose 0.3% shortly before the close in Tokyo. On the other hand, the Shanghai Stock Exchange fell 0.1%.
In Asian forex trade, the dollar showed modest strength against other major currencies. Meanwhile, the euro fell 0.1% to $1.0741. Currently, a troy ounce of gold is trading at $1,957, down 0.2%.
In the DAX index, the focus is on Rheinmetall shares. Given the increased demand, the head of Armaments Group believes that the company’s value will increase significantly in the coming years. “A valuation of 17 billion euros is realistic for Rheinmetall in the medium term,” Armin Papperger told the German editorial network. Rheinmetall is currently valued at up to 10 billion euros on the stock exchange.
Volkswagen Trucks holding company Traton expects billions of dollars in additional costs from the planned Euro 7 emissions standard. “If the law came in as it is now planned, we would be incurring a huge cost for the group of about 1 billion euros to invest in a technology that is about to expire, even though we are facing a huge transformation,” the company’s boss said. Traton brand MAN, Alexander Vlaskamp, in an interview with “Welt am Sonntag”.
The image processing specialist Basler has once again strengthened its financial strength by selling its own shares. The SDAX-listed company announced over the weekend that it sold 500,000 shares on Friday at 19.25 euros each. All in all, Basler’s total revenue was close to ten million euros. The company last sold its shares in mid-May at 20.40 euros per share.
The Hamburg district court is today hearing a damages lawsuit against Mainz-based vaccine manufacturer BioNTech for alleged vaccine damage. This is the first national hearing in the case of BioNTech’s vaccine Comirnaty. The plaintiff said that since getting the vaccine, she has experienced upper body pain, swelling in her extremities, tiredness, tiredness and trouble sleeping.
In the presence of Federal Chancellor Olaf Scholz, automaker Ford will open a new electric car factory in Cologne today. In Cathedral City, Midea Group has provided funding totaling $2 billion to bring two electric models to market and produce 1.2 million over six years. Series production is scheduled to start by the end of this year.
Chinese manufacturer Nio is now also joining the price war being waged by electric car maker Tesla. Nio said that starting June 12, it cut prices on all models by nearly 4,000 euros (30,000 yuan). Free battery replacements will be eliminated as part of the cost reduction process. Nio previously offered services up to four times a month.
In Switzerland, big bank UBS has finalized a takeover of its ailing rival Credit Suisse. “Today we reached an important milestone,” UBS said in an open letter published in several newspapers. “We have completed the legal close of the Credit Suisse acquisition.” The deal created a banking giant with more than $5 trillion in assets under management.
Swiss drugmaker Novartis is expanding its US presence in a $1 billion acquisition, taking over Chinook Therapeutics for as much as $3.5 billion. According to Novartis, the Seattle-based biotech is developing two drugs for the treatment of a rare and severe form of chronic kidney disease.