Status: 06/03/2022 09:51 a.m
At the start of trading, the DAX is testing an important key brand that will determine further developments on the German stock market. Tailwind comes from Wall Street and strong German export data.
The DAX is preparing to end a rather sluggish stock market week with an exclamation mark. The leading German index started the last trading day of the week with a premium. At the start of trading on XETRA, the DAX rose by 0.7 percent to 14,585 points. Positive indications from the overseas stock exchanges, but also strong economic data from Germany push the stock barometer at the end of the week.
German exports with an element of surprise
In the morning, German exports provided a moment of surprise: German exports had recovered unexpectedly strongly in April from the shock after the outbreak of war in Ukraine. They grew by 4.4 percent on the previous month to 126.4 billion euros due to good business with the USA and the euro countries. Economists had only expected an average increase of 1.5 percent.
“Decisive switching point” in the DAX
With the early price gains on the German stock market, the technical picture in the DAX continues to brighten. The focus is now on the 14,600 point mark, in which the two April highs run. “The stock barometer is thus testing a crucial switching point, the overcoming of which paves the way to the March high of 14,925 points,” the technical analysts at HSBC emphasized the importance of this round mark.
Another significant resistance runs just above this with the 200-day line (currently at 15,082 points). On the other hand, a slide below the two most recent daily lows at 14,359/14,330 points would indicate a failure at the key mark of 14,600 points.
Update economy from 03.06.2022
Stefan Wolff, HR, 6/3/2022 9:48 a.m
All eyes on the job market
In the afternoon, the US labor market report is still on the stock exchange agenda, which should ultimately determine the end of the week. The foreign exchange market experts at Commerzbank are currently downplaying its importance. Since the US central bank is already resolutely tackling the dangers of inflation with large and rapid interest rate hikes, a tenth more or less in the unemployment rate should not change anything about the current pace of the Fed, it said.
Wall Street: Investors grab stocks
Tailwind for the European stock markets came from Wall Street at the end of the week. US investors pushed aside their concerns about interest rates and the economy yesterday and grabbed stocks. The Dow Jones index of standard values closed 1.3 percent higher at 33,248 points. The broad S&P 500 gained 1.8 percent to 4176 points.
Apple, Alphabet and Amazon in demand
Investors especially grabbed large tech companies such as Apple, Google’s parent company Alphabet and Amazon. The tech-heavy Nasdaq advanced 2.7 percent to 12,316 points.
Nikkei closes with significant gains
The Tokyo stock exchange showed stronger this morning thanks to good US targets and strong price gains of the index heavyweight Fast Retailing. The Nikkei index, which comprises 225 stocks, rose by 1.2 percent to 27,748 points. The markets in Shanghai and Hong Kong remained closed for a public holiday. There is no trading in London today either.
Gold a little cheaper again
The euro is trending sideways at $1.0755 in early forex trading. The price of gold is under some pressure after its recent significant gains. An ounce of gold is $1867 in early trading.
Oil prices ease slightly
However, investors should definitely keep an eye on further developments on the oil market. In the morning, a barrel (159 liters) of North Sea Brent costs $117.16, 0.4 percent less than the day before. The price of a barrel of the US WTI variety fell by 0.5 percent to $116.26.
The oil price surprisingly turned positive yesterday after the OPEC+ export cartel agreed on higher production quotas for the summer months. The group, which also includes the producing country Russia in addition to the OPEC members, decided on a significant increase of 648,000 barrels per day for the months of July and August.
Beiersdorf expected back in the DAX
This evening, after the stock exchange closes, the Working Group for Share Indices of Deutsche Börse will decide on the composition of the DAX indices. According to experts, the consumer goods manufacturer Beiersdorf is likely to return to the leading German index just a few months after being dropped from the DAX. The food delivery service Delivery Hero will have to make way for sure.
Fresenius Kabi facing job cuts?
According to the “Handelsblatt”, the medical group Fresenius, which has been busy with an austerity program for a long time, also wants to cut jobs at its infusion manufacturer Kabi. Around 2,000 jobs would be cut there worldwide, around 250 of them in Germany. That corresponds to almost five percent of the jobs in the division. According to the newspaper, Fresenius did not comment on the figures.
Allianz sells majority stake in Russia
Allianz is selling the majority of its business in Russia. The Munich-based insurer announced that the buyer was Interholding, the owner of the Russian property and casualty insurer Zetta Insurance. After completion of the transaction, Allianz will still hold 49.9 percent of the combined company. The sale will result in a burden of around 400 million euros.
Competition gives Adidas and Puma a boost
After encouraging figures from competitors, investors are investing in Adidas and Puma. Earlier, yoga apparel specialist Lululemon announced quarterly earnings above market expectations and raised its full-year targets. At Fast Retailing, the mother of the fashion brand Uniqlo, sales increased by 17.5 percent in May within a year.
Rheinmetall submits offer for Leonardo division
According to insiders and a document, the Düsseldorf-based armaments and automotive supplier group Rheinmetall has submitted a non-binding offer for a minority stake in the Leonardo division OTO Melara. Rheinmetall is aiming for a stake of up to 49 percent in the company. The MDAX group is aiming for a price of 190 to 210 million euros.
New bad news from Singulus
The mechanical engineering company Singulus Technologies has postponed the long overdue publication of the audited annual financial statements for 2020, which was last planned for Friday. Singulus announced yesterday evening that the auditor had requested additional documents at short notice.
Compugroup Medical reorganizes management
The software provider Compugroup Medical is reorganizing its top management. The company announced that the contract with CEO Dirk Wössner would end by mutual agreement on June 30th. The background is “differing views regarding the long-term strategy”. CFO Michael Rauch will be appointed spokesman for the managing directors.
Tesla boss Elon Musk calls for job cuts
Tesla boss Elon Musk wants to cut about every tenth job. In an internal email to executives obtained by the Reuters news agency, Musk writes that he has a “very bad feeling” about economic development. The US electric car manufacturer must therefore reduce its workforce by around ten percent. The e-mail was headlined “Recruitment freeze”.
Apple is improving retail hours
According to an agency report, Apple is responding to efforts to unionize with better working hours. The work schedules would be made more flexible, reported the agency “Bloomberg”, citing insiders. Among other things, the breaks between shifts in some stores would be increased to twelve out of ten hours. The iPhone maker just last week raised the minimum wage for US workers to $22 an hour.
Soon BioNTech and Moderna vaccine for young children in the US?
The US government expects the first vaccinations against the corona virus for children under the age of five from June 21st. The FDA’s external advisory panel will evaluate BioNTech/Pfizer and Moderna vaccines for this age group on June 14-15, said White House coronavirus adviser Ashish Jha. If the FDA agrees, as expected, the vaccines could be shipped right after.
Ryanair boss proposes military at airports because of travel chaos
After several days of long queues at several British airports, the head of Irish low-cost airline Ryanair has suggested letting the military help out temporarily. Deploying the armed forces there, as is done at other airports, would take the pressure off airport security staff in one fell swoop, Michael O’Leary, known for his pithy words, told ITV yesterday.
Stellantis in the pillory
The US Department of Justice has formally charged the US division of automaker Stellantis with a criminal conspiracy to manipulate emissions levels from diesel vehicles. A federal district judge in Detroit has scheduled a court date for today. Stellantis did not comment.
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