market report
The DAX fell below the 16,000 mark. If the decline continues, the recent uptrend could come to an end. U.S. interest rate policy and the trade dispute with China are a burden.
The DAX fell 1.2% to 15,750 at midday. Germany’s main stock index also fell yesterday. At the close, the stock market barometer fell 0.6% to 15,938 points, falling below the much-anticipated 16,000-point mark.
If the index closes below 15,711, from a technical point of view, a trend reversal pattern will be activated, said Jochen Stanzl, chief market analyst at CMC Markets. However, holding the support level again could serve as the basis for a new leg higher. “But the DAX seems to be out of air for now,” a market watcher said.
Following the release of the minutes of the last Fed meeting, there are growing signs that the central bank will further tighten monetary policy. Nearly all Monetary Policy Committee members expect further rate hikes later this year, the report said.
“The most critical point remains monetary policy,” stressed Robert Halfer, market strategist at Badr Bank. The gradual decline in inflation contrasted sharply with harsh rhetoric from central bankers. But privately, they are already preparing to back off the shift to raising rates.
“This is also indicated by ongoing economic risks, which are undermining the fundamental strength of stocks,” Halfer said. The expert had initially expected increased price volatility, which could also be caused by ongoing geopolitical crises, such as those between the U.S. and China. chip dispute.
For investors, the escalating trade conflict is once again more important: “For a long time, the trade dispute between the United States and China has been quiet. But now the next stage of escalation is imminent,” says financial services market expert Christian Henk (Christian Henke) said provider IG. China wants to make it harder to export certain raw materials important to chip production after the United States restricted exports of high-performance chips to the People’s Republic of China.
Starting in early August, companies must apply for licenses to export gallium and germanium products. This should protect the strategic interests and security of the People’s Republic of China. U.S. Treasury Secretary Janet Yellen is currently traveling to the People’s Republic of China amid the conflict.
Against the backdrop of US monetary policy, tomorrow’s jobs report will be the highlight of the week. The Fed is particularly concerned about rising wages and stable employment in the U.S., as they continue to fuel inflation in the country. The ADP private sector employment report, due to trade today, may provide an early indication of what’s going on.
German economic data, on the other hand, was good news: In May, German industrial orders recorded the largest increase in nearly three years. Orders rose by 6.4 percent month-on-month, according to the Federal Statistical Office. Economists polled by Reuters, on the other hand, expected growth of just 1.2%. In April, new business was revised up 0.2%, after falling 10.9% in March, the largest decline since April 2020 amid the pandemic.
The cryptocurrency bitcoin rose to a new high for the year, hitting $31,500. Timo Emden of Emden Research commented: “At the start of the new year, the main talking point for crypto investors remains continued speculation about the launch of a bitcoin spot ETF in the US.” “Asset management company BlackRock submitted a corresponding application in the middle of last month. Final approval will be a tribute to Bitcoin and its company. ”
According to industry sources, European aircraft manufacturer Airbus delivered 316 aircraft in the first half of the year, an increase of 6% over the same period last year. The company declined to comment on the figures, which are due to be officially released on Friday. The global market leader aims to deliver 720 for the year. Aircraft manufacturing has been severely impacted by supply chain issues since the start of the pandemic. However, the situation is improving, as sales manager Christian Scherer recently told Reuters.
Meanwhile, Volkswagen is preparing for goods controls announced in China. When queried by Reuters, the group said it was fully assessing and monitoring the situation in commodity markets to act with partners if necessary. “Our goal is always to have as little impact on the production network as possible.” Gallium and germanium are important resources for automotive products such as LEDs, high-frequency applications, and play an important role in future autonomous driving functions.
New management at software company Suse has to contend with falling profits due to customer reluctance and negative exchange rates. The Nuremberg company said operating results fell 63% to $12 million in the second quarter. Inflows even fell by 83% to $4 million. Sales edged up 1 percent to $162 million.
Gerresheimer, a manufacturer of special packaging for the pharmaceutical and cosmetics industries, expects a further positive development in business in 2023 following an increase in sales and profits in the second quarter. The group confirmed its forecast. Between April and June, Gerresheimer’s sales rose to around EUR 500 (previous year: EUR 445 million) and adjusted operating income (EBITDA) rose to EUR 107 million (EUR 9 billion).
Germany’s first IPO in five months is a foregone conclusion. Shares in ThyssenKrupp’s hydrogen subsidiary Nucera will be offered at 20 euros each, the company said. Its value is 2.53 billion euros. The size of the offering is 605 million euros, of which ThyssenKrupp Nucera will issue 526 million euros. The company hopes to invest the funds primarily in the expansion of its electrolysis business. The initial listing on the Frankfurt Stock Exchange is expected on Friday (July 7).
Facebook group Meta has launched a Twitter-rival app called Threads. The app launched Thursday night in the U.S. and dozens of other countries. Threads won’t initially be available in Germany and other EU countries — the group cited regulatory issues that are still pending.