market report
Investors still lack the last bit of courage to drive the DAX to a record high. Above all, a small uncertainty factor makes them hesitate.
During the course of the morning, the DAX crawled closer and closer to its record high of 16,290 points. At the high of 16,285 points, the leading German index was just five points short of its record from 2021.
But as long as an agreement in the US debt dispute has not been officially announced, a residual factor will remain uncertainty. It is therefore quite possible that a few DAX investors will still hesitate a little before investing in this situation. But a failure of the talks is not really to be expected, as a look at the past teaches.
In addition, investors who are still hesitating are coming under increasing pressure in view of the rising DAX prices. The fear of missing out, also known as FOMO (Fear of missing out), is also a powerful driving factor in the stock market.
Despite the recent price gains on Wall Street, the mood among US stock market letter writers, private investors and fund managers is only cautiously optimistic, as a look at various sentiment indicators shows. This can safely be interpreted as a counter-indicator.
“There is caution,” emphasizes market expert Robert Rethfeld from Wellenreiter-Invest. In view of the new annual highs in the S&P 500 and Nasdaq 100, the “pressure to invest” is increasing.
Wall Street is also likely to be up on the last trading day of the week. However, the price fluctuations in US futures are currently limited. The future on the Dow Jones Industrial Average is 0.1 percent higher, the future on the Nasdaq 100 gains 0.2 percent.
The growing hope for a solution to the US debt dispute is making the US dollar popular. Against this background, the euro had fallen to its lowest level since the end of March in the morning. At lunchtime, however, the European common currency struggled and was up 0.2 percent at just under $1.08. An ounce of gold currently costs 1968 dollars.
In the case of the individual values on the German stock market, it is primarily analyst comments that are causing movement. The biggest DAX loser at lunchtime is the Commerzbank share. A downgrade to “Underperform” from “Neutral” by Bank of America (BofA) weighed on this. After the price rally of the past few months, the BofA experts no longer see any scope for the share price. They assume that net interest income has peaked.
The VW Group is withdrawing completely from Russia for the time being. The plant in Kaluga will be sold to the Avilon trading group, the Wolfsburg company announced. After earlier steps in connection with the Ukraine war, the decision de facto marks the end of an independent Russia business at Europe’s largest car group. According to media reports, Moscow gave the green light this week.
Among the smaller stocks, 1&1 in the SDAX benefited from a new buy recommendation from Deutsche Bank. On the other hand, the shares of Telefonica Deutschland (O2) listed in the MDAX recorded price losses, here Deutsche Bank had canceled the purchase vote. Analyst Keval Khiroya said in a study that 1&1 appears to be better positioned for long-term free cash flow.
Private bank Berenberg has left BioNTech’s rating at “Buy” with a target price of $200. The World Health Organization has to protect against the corona variant XBB1.5. an update of the vaccination protection with a monovalent vaccine is recommended, wrote analyst Zhiqiang Shu. This is positive for manufacturers of mRNA vaccines such as BioNTech.
The US company Apple has restricted the use of ChatGPT and other AI tools for its employees. As the “Wall Street Journal” reported, citing a document and insiders, Apple is concerned that employees could pass on confidential data during use. Apple is currently developing similar technology, the newspaper said.
Applied Materials exceeded market expectations with its sales forecast for the third quarter. The chip supplier is assuming 6.15 billion dollars (plus or minus 400 million dollars), as he announced yesterday after the US stock market closed. Analysts expect an average of $ 6.02 billion. On an adjusted basis, the company earned $2 a share compared to analysts’ forecast of $1.84 a share.