DAX expected at 15,700: Is the DAX rally running out of steam?



Market report

Status: 10/28/2021 7:49 a.m.

The DAX shouldn’t make too big leaps at the start of trading. After the brilliant rally at the beginning of the week, disillusionment has now returned. The leading German index shows respect for the next big hurdle.

The DAX is unlikely to start the new trading day changed. Banks and brokers estimate the 40 German standard values ​​at 15,706 points and thus at the level of its closing price from the previous day. The DAX had to give up part of its early weekly profits yesterday.

The leading German index closed yesterday 0.3 percent lower at 15,706 points, after rising to 15,781 points on Tuesday. The German standard values ​​show respect for the 15,800 points, this mark should not be easy to overcome from the point of view of market observers arguing on the basis of charts.

At this point, a decent resistance from the bears should be expected, not least because the DAX would open the door wide to its all-time high (16,030 points) with a rise above 15,800 points.

German inflation rate for October in focus

It is not only the storm of numbers that is coming up today that is causing restraint among investors. In the further course of the day, two important dates are also on the stock exchange agenda: However, market observers do not expect any new monetary policy decisions from the afternoon council meeting of the European Central Bank (ECB) and thus no excessive price impulses.

The market reaction to the publication of the German inflation rate for October at 2 p.m. could be exciting. Analysts expect an annual inflation rate of 4.4 percent. Fueled by rising energy prices, the inflation rate of 4.1 percent in September exceeded the four percent mark for the first time in almost 28 years.

Negative targets for the German stock market come from Asia. The stock exchanges there have slipped today. The reports of the companies in the accounting season reminded investors of the global supply bottlenecks.

Shortly before close of trading in Tokyo, the Nikkei index, which comprises 225 stocks, is 0.8 percent lower. The Shanghai stock exchange is 1.0 percent in the red. The Hang Seng in Hong Kong is trending sideways.

There are mixed guidelines from Wall Street. The US standard value index Dow Jones yesterday lost 0.7 percent to 35,490 points. The broad S&P 500 lost 0.5 percent to 4551 points.

Once again, stockbrokers racked their brains over the monetary policy of the US Federal Reserve. “Inflation is stubbornly overshooting,” wrote the analysts at Bank NatWest. “The Fed can only tolerate a certain amount before acting.”

After all: The good run on the Nasdaq continued, spurred on, among other things, by a soaring in Alphabet and Microsoft shares. In the end, the selection index Nasdaq 100 defended an increase of 0.3 percent to 15,598 points. At the top he had expanded his record high to almost 15,730 points.

On the cryptocurrency market, Bitcoin continues to be under pressure in the morning. According to the CoinMarketCap platform, it is currently trading at around $ 58,700, after having hit a record high of just under $ 67,000 the previous week.

“The whole big appetite for Bitcoin & Co is satisfied in the short term,” said analyst Timo Emden from Emden Research. Fresh impetus could come from listed funds (ETFs) that invest directly in cryptocurrencies.

The price of gold has made up ground after its recent decline and reclaimed the $ 1,800 mark. In the morning, a troy ounce of the yellow precious metal costs $ 1,800.39, 0.2 percent more than the day before. The euro is trending up slightly at $ 1.1605.

The European aircraft manufacturer Airbus is getting out of the Corona crisis even faster than expected. The Franco-German company has raised its earnings target for the second time within three months and now expects adjusted operating earnings (EBIT) of around 4.5 billion euros in 2021, 500 million more than before.

The second largest US automaker, Ford, performed better than expected in the third quarter despite the global chip crisis and raised its forecast. For the full year 2021, adjusted operating profit between 10.5 billion and 11.5 billion dollars can be expected, Ford announced yesterday after the US market closed.

The trading platform Ebay disappointed investors with its quarterly report. The share lost around five percent at times in the US after-hours trading. Ebay increased sales 11 percent year over year to $ 2.5 billion in the third quarter. For the Christmas quarter, however, the group promised slower sales growth of between four and six percent.

South Korean tech giant Samsung posted its highest operating profit in three years at 15.8 trillion won ($ 13.5 billion) in the third quarter. The main reason for this is the strong business with currently coveted chips. Samsung Electronics is benefiting significantly from the increased prices for semiconductors on the world market.

The EU Commission is taking a closer look at Nvidia’s planned $ 54 billion takeover of British chip developer Arm. “While Arm and Nvidia are not in direct competition with each other, Arm’s intellectual property is an important part of products that compete with Nvidia’s,” said Competition Commissioner Margrethe Vestager.

According to a media report, the activist investor Third Point has acquired a large stake in the oil company Royal Dutch Shell and is calling for it to be split up. The stake is worth more than $ 500 million and makes Third Point one of Shell’s largest shareholders, reports the Wall Street Journal.


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