DAX before new losses: One floor lower

market report

Status: 01/19/2022 07:23 a.m

The stock markets are currently struggling to recover. After Wall Street lost again significantly in the evening, the leading German index should also start trading with losses.

According to pre-market indications, the DAX will start trading at around 15,715 points in the middle of the week. This corresponds to a minus of around 50 points or 0.4 percent compared to yesterday’s XETRA close.

Selling off on Wall Street

The specifications from overseas are anything but favorable. On Wall Street in New York, prices tumbled in the evening. Fears of interest rate hikes and disappointing company balance sheets in the reporting season caused the Dow Jones index to fall 1.5 percent to 35,368 points. The tech-heavy Nasdaq fell 2.6 percent to 14,506 points. The broad S&P 500 lost 1.8 percent to 4577 points. Investors fear the US Federal Reserve will raise interest rates more quickly because of persistently high inflation, said Neil Wilson, chief analyst at online broker Markets.com. Even an increase of half a percentage point can no longer be completely ruled out.

Asian stock markets in the red

In Asia, too, the indices continued to slide. In Tokyo, the Nikkei index closed 2.8 percent lower at 27,467 points. Heavyweights like Toyota and Sony dragged the market down. The Shanghai stock exchange was down 0.1 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.3 percent.

Oil price rally worries

The rising oil price is also fueling fears of inflation worldwide. The price of US crude oil WTI rose by up to 2.9 percent in Asia in the morning and at $86.27 a barrel (159 liters) was the highest it was more than seven years ago. The drone attack by Yemeni Houthi rebels on tankers in Abu Dhabi is fueling speculation about supply shortages at a time when supply is already scarce, market observers say. Investors’ nervousness is exacerbated by tensions between Russia and Ukraine.

Euro back to 1.13

On the foreign exchange market, the euro has ended its temporary small soaring against the US dollar. The shared currency has fallen back to its previous level, trading at $1.1310 in the morning. A troy ounce of gold costs 1813 dollars, hardly changed.

US reporting season sets course

As of noon today, further important quarterly figures are expected from US companies, including consumer goods manufacturer Procter & Gamble and several US banks. The balance sheet of the investment bank Goldman Sachs yesterday had disappointed investors and significantly depressed the bank’s shares.

Ford deserves an Rivian

The US car company has earned billions of dollars by going public with the electric car manufacturer Rivian. According to Ford, the stake in Rivian brought it a profit of $8.2 billion in the fourth quarter. Rivian went public in November 2021 and had an issue volume of twelve billion euros. The company has two powerful financiers: Ford has a 12 percent stake in the Californian company, and the online retailer Amazon holds about 20 percent in Rivian.

Verizon and AT&T make concessions on 5G

AT&T and Verizon are making last-minute concessions on their expanded 5G services for faster internet on mobile phones because of security concerns in the airline industry. Verizon announced on Tuesday that it had voluntarily decided to initially limit the introduction of the new mobile communications standard in the vicinity of airports. This was preceded by a conflict with US airlines, which feared disruptions to air traffic because a radio frequency range of 5G Internet and certain aircraft electronics could get in the way.


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