Saturday, November 27

DAX expected lower: Risky balancing act for the markets

Market report

Status: 02.11.2021 07:37 a.m.

The US Federal Reserve’s two-day meeting begins today. The Federal Reserve is heading for a tightening of its extraordinary monetary policy pandemic measures – this is not without risk to the markets.

The German leading index DAX should start the trading day with a slight discount. Banks and brokers currently rate the 40 German standard values ​​0.1 percent lower at 15,792 points.

The positive seasonality continues to provide a tailwind, as the sixth best months on the stock market, statistically speaking, began with the month of November (Halloween effect).

Yesterday the German leading index got off to a brilliant start in the new month: it rose to 15,849 points, the DAX was at the top of the highest for over a month.

Fed before tapering begins

However, the two-day meeting of the US Federal Reserve, which begins today, is causing restraint among investors. With inflation at a 30-year high, market observers firmly believe that the Federal Reserve (Fed) will announce the reduction of its monthly bond-buying program in the middle of the week. This operation, known in technical jargon as tapering, is not without risk for the heated stock markets.

In the USA, the major indices had only set new highs yesterday. Dow Jones index of default values ​​closed 0.3 percent higher to 35,913 points. The technology-heavy Nasdaq advanced 0.6 percent to 15,595 points. The broad S&P 500 gained 0.2 percent to 4613 points.

A largely successful profit season brightened the mood fundamentally. “The point is that profits are much better than expected, and despite some disappointment with the forecasts, investors are focusing on it,” said portfolio manager Robert Pavlik of wealth manager Dakota Wealth.

Investors on the Asian stock exchanges are also looking forward to the Fed meeting with excitement. In the run-up, they are largely restrained. The stock exchange in Tokyo shows itself to be weaker, the Nikkei index comprising 225 values ​​is listed at the close of trading in Tokyo 0.5 percent lower at 29,495 points. The Shanghai stock exchange is currently 1.8 percent in the red.

The gold price is trending up slightly in the morning. One troy ounce of the yellow precious metal pays 1793 dollars, 0.1 percent more. The gold price continues to struggle to sustainably conquer the psychologically significant mark of $ 1,800. The euro rose slightly to $ 1.1606.

In the DAX, the health group Fresenius and its dialysis subsidiary FMC with figures for the third quarter come into focus in the morning. FMC wants to simplify its operating model and thus cut costs significantly. The group expects the annual cost base to be reduced by 500 million euros by 2025. However, this would also require one-off investments of around 450 to 500 million euros.

The Kochbox mail order company HelloFresh has more confidence again and is raising its sales forecast for the year as a whole. The DAX newcomer is now expecting an increase in sales of between 57 and 62 (previously 45 to 55) percent after adjusting for currency effects. In the best case scenario, HelloFresh would increase sales to more than six billion euros.

In view of the international chip crisis, the VW subsidiary Audi has finally given up its hopes for a new sales record this year. “The chip crisis is costing us a record year,” said Audi boss Markus Duesmann of the “Augsburger Allgemeine”. The distortions caused by the delivery bottlenecks would remain very strong until the end of the year and continue into the coming year.

The US electric car developer Rivian plans to collect up to $ 8.4 billion from investors when it goes public. The e-car company, whose major investors include Amazon and Ford, is listing its papers on the New York tech stock exchange Nasdaq under the ticker symbol “RIVN”. The retail premiere is expected in the coming week.

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