DAX expected with profits: still on course for recovery

Market report

As of: 12/28/2021 7:37 a.m.

The mood on the stock markets remains good despite the Omikron wave in the corona pandemic. On Wall Street, some of the indices rose to new record highs. And the DAX is still making some headway.

According to calculations by banks and brokers, the German leading index should start the trading day at just under 15,900 points. The DAX is thus building on yesterday’s recovery movement. The record high of 16,290 points remains out of reach for the time being.

“Santa-Claus-Rally” in New York

In New York, the Dow Jones index almost hit a new high. It closed around one percent higher at 36,302 points. The technology-heavy Nasdaq was up 1.4 percent to 15,871 points. The S&P 500 marked an all-time high, climbing 1.4 percent to 4791 points. The “Santa Claus Rally”, which refers to the last five days of the old and the first two days of the new year, seems to be in full swing.

Airline and cruise stocks under pressure

The rapid spread of the Omikron variant is also causing skepticism in the USA, according to Naeem Aslam, chief market analyst at the brokerage house AvaTrade. “Nobody wants to see another total lockdown as it would have a negative impact on the economy.” In the evening, airline shares came under pressure due to new flight cancellations. The cruise lines Carnival Cruise, Royal Caribbean and Norwegian also lost titles. Due to corona outbreaks on board, at least three cruise ships had to return to their ports of departure in the past few days.

Growth hopes from Japan

In Asia, too, investors first gave the bad news about the pandemic the cold shoulder that morning. “The risk-taking mood continues,” said Edison Pun, senior market analyst at Saxo Markets in Hong Kong. The Japanese Nikkei index closed 1.4 percent higher at 29,069 points. The stock exchange in Shanghai, however, was 0.2 percent in the red. The index of the major companies in Shanghai and Shenzen gained 0.1 percent.

The Japanese industry is still on the road to recovery thanks to decreasing supply bottlenecks in the automotive sector. According to official data from Tuesday in November, industrial production rose by 7.2 percent compared to the previous month, surpassing the 4.8 percent increase forecast in a Reuters survey. This means that production rose for the second month in a row, after an increase of 1.8 percent in October.

Euro stable, oil more expensive again

On the foreign exchange market, the euro continued to improve slightly against the dollar. In the morning, the common currency traded at $ 1.1330, well above the $ 1.13 mark, which it has fallen below several times in the past few days. In the hope of a recovery in the global economy, oil prices continue to climb. A barrel of North Sea Brent costs $ 78.40 this morning, half a percent more than yesterday. Gold is also still in demand; the troy ounce of the precious metal is currently trading at $ 1,813.

Low sales in DAX & Co

In German equity trading, a trend towards low trading volumes and price fluctuations can be expected again today. Many major investors have already completed the 2021 stock market year.

Relief for car manufacturers in China

The stocks of automakers BMW, VW and Daimler could benefit from news from China this morning. According to a media report, China is abolishing investment limits for foreign automakers in the passenger car sector. The change should apply from 2022, writes the financial newspaper “Nikkei”, citing the competent authority. China announced in April 2018 that it wanted to open the industry to foreigners in several steps. Foreign car companies in China are no longer necessarily dependent on local partners. According to the newspaper, the automaker BMW plans to increase its stake in a joint venture in the Liaoning province from the current 50 percent to 75 percent in the next year.


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