DAX slightly up: Wall Street without momentum

market report

Status: 04/19/2023 10:13 p.m

Amidst the tension between interest rate expectations and company data, the US stock exchanges moved sideways on Wednesday. The German market presented itself as robust.

The New York stock exchanges tended to be mixed in the middle of the week. The standard value index Dow Jones moved mainly sideways and closed 0.23 percent lower. Yesterday’s results from investment bank Goldman Sachs dampened sentiment. Today, competitor Morgan Stanley reported a first-quarter profit decline, but the stock suffered only temporary losses.

“Beige Book”: US economy stable

The current economic report from the US Federal Reserve (Fed) hardly provided any new impetus. In the report called “Beige Book”, the currency watchdogs attest to a “relatively stable” development of the US economy. Economic activity has changed little over the past few weeks. Growth on the labor market has weakened somewhat and price increases have slowed. The Fed’s next interest rate decision is due in early May. Experts are currently assuming another small rate hike of 25 basis points.

The technology index Nasdaq 100 almost made up for its initial losses and closed just 0.02 percent lower. After the stock exchange closes, the balance sheets of the electric car manufacturer Tesla and the high-tech heavyweight IBM are expected.

DAX still in good shape

The German stock market is still in good shape. After a weak start, the DAX managed a slight increase of 0.08 percent by the end of trading. This means that the high for the year of 15,916 points reached on Tuesday remains within reach.

The stock market has recently been able to successfully defy renewed interest rate concerns and isolated disappointing quarterly reports.

Update economy from 04/19/2023

Anne-Catherine Beck, HR, 4/19/2023 9:50 a.m

Euro stays below 1.10

The European common currency was under considerable pressure, especially in the morning, but was able to contain its losses somewhat over the course of the day. The dollar appreciated against many other major currencies. The US currency is often targeted as a haven of stability in uncertain times.

Turkish lira lower than ever

Barely a month before the presidential and parliamentary elections in Turkey, the national currency has slipped to its lowest level in history. Yesterday the exchange rate in New York was 19.5996 Turkish lira per dollar. Since its introduction in January 2005, the new lira has never been worth so little. Although inflation in Turkey has been declining steadily over the past five months, it was still at 50.51 percent in March.

Oil prices fall back

Oil prices slipped more significantly. According to market experts, the declining refinery margins for diesel and kerosene in particular indicated a drop in global demand. A barrel of North Sea Brent was trading 1.8 percent lower at $83.60 late in the evening. The surprisingly significant drop in oil reserves in the USA hardly supported the prices. Crude oil inventories shrank by 4.6 million to 466.0 million barrels (159 liters each) compared to the previous week.

Gold prices back below 2000 dollars

The price of gold had to give up the round mark of 2000 US dollars again in the morning. “Key support is in the $1,940-$1,960 range, with a test below $1,900. A break of this level could signal a broader trend reversal and significantly more aggressive rate expectations,” said Craig Erlam of brokerage firm Oanda.

Tesla cuts prices in the US again

Tesla’s quarterly figures are expected the evening after the US stock market closes. Because of the current price war, experts fear that the profit margin of 23.2 percent will be lower than it has been for more than three years. The electric car manufacturer had previously announced that it would push the discount battle in its home country. US prices are down $3,000 each for the Model Y and $2,000 for the Model 3. This is the sixth time Tesla has lowered prices in the US this year.

Rheinmetall upgrades Puma

Rheinmetall shares were among the winners in the DAX. The armaments group, together with its partner Krauss-Maffei Wegmann (KMW), has received an order from the Bundeswehr to retrofit additional Puma infantry fighting vehicles. According to the DAX company, the order volume is over 770 million euros. By 2029, the tank’s firepower and command and control systems should be modernized.

Kion increases prognosis

The Kion share was in high demand on the MDAX. The forklift manufacturer has raised its forecast for the year. According to preliminary figures, the forklift truck division (ITS) increased its adjusted operating income (EBIT) to 177 (previous year: 114.2) million euros in the first quarter thanks to better functioning supply chains, Kion announced. Accordingly, the Group’s operating income was better than expected at EUR 156 (170.3) million. Sales from January to March rose slightly to EUR 2.78 (2.73) billion. For the year as a whole, Kion now expects revenues of at least EUR 11.2 billion, previously the group had assumed at least EUR 11 billion. The adjusted EBIT should be at least 615 (previously at least 550) million euros.

Gerresheimer in the red after capital increase

The MDAX packaging specialist Gerresheimer has raised fresh money with a capital increase on the market. The 3.14 million new shares offered were sold for EUR 86.50 each, the company said on Tuesday evening. The gross issue proceeds amounted to 271.6 million euros. The proceeds give Gerresheimer “the flexibility to take advantage of further significant, profitable growth opportunities,” the company said.

Carl Zeiss Meditec with cost problems

The Carl Zeiss Meditec share posted significant losses. Increased material and wage costs as well as problems in China depressed the profitability of the medical technology specialist in the past quarter. According to preliminary calculations, earnings before interest and taxes (EBIT) fell by almost 19 percent year-on-year to EUR 83.6 million. Sales, on the other hand, climbed by a good 13 percent to EUR 504.2 million. The bottom line was a profit of EUR 0.69 per share after EUR 1.01 in the previous year.

Netflix disappointed

After the US stock market closed on Tuesday, the video streaming service Netflix presented its business results that did not meet investor expectations. In the first quarter, the online video service increased the number of customers by 1.75 million to 232.5 million user accounts and increased sales by almost four percent year-on-year to $8.2 billion. However, profit fell by around 18 percent to 1.3 billion dollars.

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