DAX expected higher: approaching record high

Market report

Status: 03.11.2021 07:28 a.m.

The stock markets keep their momentum today. The DAX could even set a new record above the 16,000 point mark. Investors look at company figures and the US Federal Reserve.

The German leading index is valued at 15,945 points in pre-market trading, which is only a few points less than at the XETRA close on the previous evening. At the all-time high of 16,030 points from August, the DAX is less than one percent short.

The specifications from the USA are again good. Good quarterly figures from some US corporations caused the Dow Jones index to close 0.4 percent higher at 36,052 points yesterday. The technology-heavy Nasdaq advanced 0.3 percent to 15,649 points. The broad S&P 500 closed 0.4 percent up at 4630 points. All three market barometers marked new records.

The signals from the US Federal Reserve are eagerly awaited on the evening after the two-day Fed meeting. Experts unanimously anticipate the beginning of the end of the billion dollar bond purchases – the so-called tapering. “Since the Fed also outlined the tapering process at its September meeting, there shouldn’t be any big surprises here,” said the foreign exchange experts at Commerzbank. “The decisive factor for the market is therefore what signals the Fed delivers with regard to an initial rate hike.”

In Asia, the stock markets tread on the spot in the morning. The Shanghai stock exchange is 0.1 percent in the red. The index of the most important companies in Shanghai and Shenzen is currently unchanged. The Tokyo Stock Exchange is closed today due to a public holiday.

On the foreign exchange market, the euro continues to work its way to the $ 1.16 mark. In the morning the common currency is quoted at 1.1583 dollars. After the significant increase in recent weeks, oil prices are falling a little. A barrel of North Sea Brent has become cheaper by around one percent to $ 83.45. The price of the troy ounce of gold is hardly changed at $ 1782.

The most important crypto currencies keep a high price level in the morning. Ethereum is increasing by up to five percent and, at $ 4,523, is more expensive than ever. There is speculation on the market that a listed fund (ETF) will soon be admitted to this crypto currency, according to analyst Timo Emden from Emden Research. Bitcoin also remains in demand and costs around $ 63,000 in the morning.

In the morning, a number of business figures from DAX companies are already attracting attention on the German stock market.

The airline is benefiting from a recovery in passenger flights and the boom in air freight. The company achieved a positive operating result for the first time in the Corona crisis. Adjusted operating profit amounted to 17 million euros in the third quarter after a loss of 1.2 billion euros in the same period of the previous year. The company exceeded the expectations of analysts. “With the increasing demand for business trips and a record result for Lufthansa Cargo, we were able to master another milestone on our way out of the crisis: the return to the black”, explained Lufthansa boss Carsten Spohr.

In contrast, the online fashion retailer and DAX newcomer Zalando had to accept a sharp decline in operating profit. In the third quarter, adjusted EBIT (earnings before interest and taxes) fell to 9.8 million euros after 118.2 million euros in the same period of the previous year. Zalando spoke of normalization and compared the margin of 0.4 percent with results from 2019. In contrast, sales climbed by 23.4 percent to 2.3 billion euros. The number of active customers rose by around 30 percent to 46.3 million.

The US mobile operator T-Mobile US is raising its expectations for the third time this year after a strong third quarter. For the year as a whole, adjusted operating earnings (Ebitda) between 23.4 and 23.5 billion dollars are expected, as the Deutsche Telekom subsidiary announced on Tuesday after the US stock market closed. As recently as July, the forecast for 2021 was raised to $ 23.0 billion to $ 23.3 billion. “We just continue to exceed our own goals for growth, profit and synergies and we have no plans to slow down,” said CEO Mike Sievert.

Facebook is abolishing the face recognition function with which users could be automatically tagged in photos. Stored data to identify the faces of more than a billion people will be deleted, as the online network announced on Tuesday. There are concerns in society about the use of face recognition technologies – and regulators are still in the process of developing rules for it, it was said to justify.

The video streaming service has started its expansion into the games business after months of preparation. Netflix made the first five smartphone games available to subscribers on Tuesday. Initially, they can only be played on phones with the Google Android operating system. The implementation for Apple’s iPhones is in progress. The Netflix subscribers can see the games in the Android app of the streaming service.


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