Market Report: That’s How Important 15,000 Points Are Now

market report

Status: 01/19/2023 09:47

Negative US targets are weighing on the DAX. The main German index started with losses. This means that the recently recovered 15,000 bar is back in investors’ attention.

The start of the German stock exchange failed. At the start of trading on XETRA, the DAX fell 0.5% to 15,108 points. Yesterday it closed slightly lower at 15,182 points. After German standard stocks rose nine percent year-to-date, some investors now see the time to take profits.

Important retirement zone in the DAX

“After the strong price increases since the beginning of the year, a correction should not surprise us,” said Christian Henke, analyst at IG. “As long as the newly conquered and now particularly psychologically important 15,000-point market holds, nothing is wrong with a consolidation,” adds portfolio manager Thomas Altmann of QC Partners.

In 2021 and 2022, the DAX has seen a whole series of highs and lows between 15,000 and 14,800 points, says Jörg Scherer, head of technical analysis at HSBC. Now it is important not to fall below this bastion. The IG Henke analyst is also convinced: “There could only be consolidation if the low of the last five trading days at 14,794 points is exceeded.”

Important dates at a glance

Further impetus for the DAX could come from upcoming dates and economic data as trading progresses. Ahead of the U.S. Federal Reserve’s interest rate decision due in early February, investors are focusing on an appearance by Fed Vice Chair Lael Brainard in Chicago. The first weekly jobless claims and December housing starts are also expected from the United States.

Separately, the European Central Bank (ECB) publishes the minutes of its December meeting on interest rates and ECB President Christine Lagarde participates in a panel discussion at the World Economic Forum in Davos. Investors are also hoping for guidance on future interest rate policy.

Recession fears return to Wall Street

Negative guidelines for DAX trading come from Wall Street. After a drop in industrial production and an unexpected drop in retail sales, fears of a recession celebrated a return to US stock markets. According to the Fed’s Beige Book, US businesses are also pessimistic about economic growth this year.

The Dow Jones Standard Values ​​Index fell 1.8% yesterday to 33,296 trading points. The tech-heavy Nasdaq fell 1.2% to 10,957 points. The broad S&P 500 lost 1.6% to 3928 points.

Mixed Contributions from Asian Stock Exchanges

Asian stocks were mixed due to interest rate concerns in Japan and the upcoming Chinese Lunar New Year. In Tokyo, the Nikkei index closed down 1.4% to 26,405 points. In China, however, the Shanghai Stock Exchange rose 0.4% to 3236 points.

The euro is stable at 1.08 US dollars

The euro exchange rate was stable at $1.08 in the morning. The common currency is currently priced at $1.0806, slightly higher than the previous evening. A troy ounce of gold costs 0.2% more at $1,911.

Oil prices continue to fall

Oil prices widened their discounts from the previous day. In the morning, a barrel (159 liters) of Brent from the North Sea for delivery in March cost 84.09 US dollars. It was 89 cents less than the day before. The price per barrel of US-grade West Texas Intermediate (WTI) for February delivery fell $1.09 to $78.39.

Henkel shares with a double burden

In the DAX, Henkel shares are among the biggest losers in early trading. Market participants gave two reasons: First, the quarterly report from US adhesives manufacturer and industry colleague HB Fuller was disappointing. In addition, the market referred to a study by Berenberg Bank: analyst Fulvio Cazzol had left his investment rating for Henkel shares at “Sell”.

Post-tariff talks continue

Deutsche Post is also the center of attention. Collective bargaining with the Verdi union continues within the Bonn-based group. Verdi is demanding 15% additional wages for some 160,000 employees over a twelve-month period.

Linux Specialist Suse Reduces Losses

Software provider Suse contained its losses in the past financial year. Ultimately, the deficit among Linux operating system specialists at $39.5 million. A year earlier, Susa was still in the red at $207.6 million.

DocMorris’ mother, Zur Rose, a little better than expected

Swiss online pharmacy Zur Rose expects a lower operating loss for the past year with declining sales. In terms of adjusted Ebitda, the parent company DocMorris now expects less than CHF 70 to 75 million (previously: CHF 75 to 85 million).

Roche drug cocktail reduces risk of liver cancer in patients

A combination therapy from the pharmaceutical company Roche has shown an effect on a certain form of liver cancer. In a late-stage Phase III clinical trial, a cocktail of drugs Tecentriq and Avastin reduced the risk of tumor recurrence after surgical removal in patients with early-stage hepatocellular carcinoma (HCC).

NASA and Boeing plan planes with lower emissions

The American space agency NASA and the aerospace technology group Boeing want to work together on a less polluting airliner. The space agency announced yesterday that NASA will provide Boeing about $425 million for this over the next seven years. Boeing and its partners would invest about an additional $725 million.

Amazon is laying off thousands of employees in the United States and Canada

Amazon will lay off thousands of employees in the United States, Canada and Costa Rica. The company informed its employees in a memo obtained by the Reuters news agency. CEO Andy Jassy announced in early January that the company would lay off about 6% of its roughly 300,000 employees.

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