market report
Status: 01/16/2023 1:04 p.m
Without impulses from the world’s leading stock exchange in New York, the strong upward momentum from the beginning of the year on the German stock market has come to a standstill. Some experts are already warning of a correction.
At the beginning of the week, calm returned to the German stock market. The early price gains in the DAX are crumbling. At lunchtime, the German stock market barometer was only slightly above its previous day’s closing price of 15,084 points. The trading range in the DAX is very small at just 51 points so far.
This is probably primarily due to the lack of US investors. Wall Street will be closed today for the Martin Luther King Day holiday. There will therefore be no fresh impetus from the world’s leading stock exchange in New York today.
DAX with the best start to the year in history
With a price gain of more than eight percent since the last trading day in December, the DAX had staged an impressive rally in the first two trading weeks of the year. It was the best start to the year in the entire history of the DAX since 1988, as Jörg Scherer, Head of Technical Analysis at HSBC, emphasizes.
“Since the first trading day of the new year 2023, the stock market has been picking up speed. Now even the pessimists don’t seem to want to miss it,” IG analyst Christian Henke is convinced. “However, the DAX could make a brief stop or insert a correction.”
Is the DAX now threatened with a correction?
Christian Zoller, technical analyst at Bank ING, also warns: “The DAX is still clearly overbought and should soon initiate a correction.” This could then initially run up to the range of 14,700 points. On the stock exchange, a sharper price decline within an overarching upward trend is called a correction.
It is more common in the markets for stock prices to suddenly move in the opposite direction after a prolonged upward movement. The reason for such a correction usually lies in the fact that market participants consider the previous upward movement to be overdone and take profits. After that, the overriding uptrend can resume.
Euro temporarily at a nine-month high against the US dollar
The euro rose to its highest level since April 2022 at 1.0874 US dollars on Monday night. The euro had already climbed to similar highs last week. But in the course of the morning the profits crumble, at lunchtime the euro is again close to its previous day’s closing rate of 1.0822 dollars.
Gold remains clear above $1900
A troy ounce of gold currently costs 1916 US dollars. In the morning, the gold price had climbed to its highest level since April 2022 at $ 1,929. Gold is benefiting from the weaker dollar and lower US interest rate expectations.
China concerns are weighing on oil prices
An increase in the number of corona infections in China and profit-taking push oil prices into the red. Brent crude oil from the North Sea and US oil WTI have each fallen in price by up to 1.3 percent to $84.19 and $78.88 per barrel (159 liters) respectively. Increasing numbers of infections in the People’s Republic are clouding hopes on the market that demand will recover soon. In addition, investors cashed in after the oil price rose by more than eight percent in the past week.
Bitcoin back above $20,000
The best-known digital currency Bitcoin continued its recent recovery course over the weekend and rose above the psychologically important $20,000 mark. At the beginning of the week, over 21,000 dollars per bitcoin were paid at times. The cyber currency has gained more than 27 percent since its low for the year on January 1st. However, it is miles away from its record price of almost $70,000 in November 2021.
RWE names schedule for Lützerath
The energy company RWE assumes that the demolition of the lignite town of Lützerath will soon be completed. It is expected that the dismantling will take eight to ten days, said a company spokesman for the “Rheinische Post”. “In March or April, the mine could then reach the former village and excavate.”
Depreciation breaks Covestro’s annual loss
In 2022, the plastics group Covestro was surprisingly torn into the red by high depreciation. According to preliminary figures, the bottom line is a loss of around 300 million euros, the DAX group announced on Friday evening. Despite the highest sales in the company’s history, Covestro also performed somewhat worse than expected in day-to-day business.
Former VW boss Hahn died
Former Volkswagen boss Carl Hahn is dead. He died on January 14, 2023 at the age of 96 in Wolfsburg, as the group announced. Hahn was at the helm of the automaker from 1982 to 1992. The acquisitions of Seat and Skoda fell during his tenure. Hahn also started VW’s expansion into China.
Uniper sells stake in gas network company
The energy group Uniper has sold its 20 percent stake in the Dutch gas network operator BBL Company to the Spanish company Enagas. Uniper announced that the purchase price was around 75 million euros. The sale is part of the conditions that the EU Commission has required of the nationalized Düsseldorf group under state aid law.
Fraport passenger numbers almost doubled in 2022
After the corona pandemic, the airport operator Fraport almost doubled the number of passengers last year. At 48.9 million, they were 97.2 percent higher in 2022 than in the previous year. The volume of freight, on the other hand, fell by 13.3 percent in the same period.
Hypoport continues to feel the effects of the real estate slump
Rising interest rates and a weakening economy are causing Hypoport to struggle again. The transaction volume for mediated loans fell by 40.5 percent year-on-year to EUR 15.41 million in the fourth quarter, the financial service provider said. In the case of real estate financing, the drop even amounts to a good 45 percent.
Kontron share boosted by outlook
At lunchtime, the Kontron share rose by more than six percent, making it the second-biggest winner in the SDAX after Hypoport. Analyst Martin Comtesse from the investment house Jefferies spoke of an “optimistic outlook” after a strong fourth quarter. Kontron had announced that the net profit in 2023 in the continued business with services related to the Internet of Things (IoT areas) should increase by a quarter to over 60 million euros.
Ford says goodbye to VW Technology
According to a media report, the US carmaker Ford wants to become less dependent on Volkswagen technology for new generations of electric vehicles in Europe. From the middle of the decade, vehicles with a proprietary system should roll off the assembly line, as Ford’s electric vehicle boss in Europe, Martin Sander, told the “Financial Times”.
Italian cartel office searches oil multinationals because of fuel prices
The Italian cartel office is investigating suspected violations of the law in fuel prices with raids on major oil companies. Among other things, officials searched the offices of Eni and the Italian subsidiary of the US energy company Exxon Mobil. It is about the suspicion that consumers at the pumps were charged higher prices than publicly announced.
Resignation at the top of Temenos boosts shares
The resignation of CEO Max Chuard boosted the shares of the Swiss banking software provider Temenos. Chuard says goodbye after 20 years at the helm of the group. Temenos is thus complying with the demands of the activist investor Petrus Advisers, who had sharply criticized the company’s top management and called for Chuard’s dismissal, among other things.
Third-party Twitter software loses access to the service
Numerous Twitter apps, such as Tweetbot, that users used to access the online service no longer work. The software has not been able to connect to the Twitter interfaces since Friday. Customers of the apps must use it to access the official Twitter app or the web version. Twitter has not yet commented on this.
