DAX higher expected: investors take a deep breath – also thanks to Amazon



market report

Status: 04.02.2022 07:48 a.m

After yesterday’s Facebook quake on the stock exchange, there is good news from the tech sector for a change. The good Amazon figures could help the DAX to get back on its feet.

The leading German index should regain some ground at the start of trading. The broker IG assesses the 40 German standard values ​​​​at the hour 0.5 percent higher at 15,450 points. This is likely to be primarily a technical reaction to the price losses suffered yesterday.

Better mood in the DAX after the ECB and Facebook shock

The 40 German standard values ​​came under more pressure yesterday after the meeting of the European Central Bank (ECB). Refreshed interest rate concerns and a severe setback in the global tech sector caused the DAX to fall by 1.6 percent to 15,368 points. In the morning, good numbers from Amazon are making the mood better again.

Amazon shares are in high demand

The world’s largest online retailer Amazon earned brilliantly thanks to a special proceeds in the Christmas quarter. At $14.3 billion, the surplus was almost twice as high as a year ago. Investors responded enthusiastically, with Amazon shares up 18 percent in after-hours US trading.

Facebook panic in the stock market

Yesterday, a historic price slump on Facebook had taught tech investors to fear. A price slide of 26.4 percent reduced the market value of the group, which was renamed Meta, by 232 billion dollars. No company had ever lost so much on the stock exchange in just one day.

ECB caught investors off guard

Facebook wasn’t the only shock investors had to endure yesterday. The ECB had also caught some investors completely wrong-footed. ECB President Christine Lagarde had to admit yesterday at the press conference after the Council meeting that inflation in the medium term has come much closer to the ECB’s target of two percent.

Economists took this as an indication that the European currency watchdogs could turn up interest rates this year. Higher interest rates make stocks less attractive as an investment.

Price slide on the Nasdaq

The record price falls at the Facebook mother Meta and the music streaming service Spotify made Wall Street to create yesterday. The technology-selection index Nasdaq 100 fell 4.2 percent to 14,501 points, suffering the largest one-day percentage loss since September 2020.

Dow lower, jobs in focus

The leading index Dow Jones Industrial fell by 1.5 percent to 35,111 points after four consecutive days of gains. The S&P 500 index, which covers the broad market, fell 2.4 percent to 4477 points. Today, before the US stock market opens, the US labor market data for January are on the agenda. Experts expect the creation of 150,000 jobs outside of agriculture.

Nikkei headed into the weekend with gains

Good conditions for stock trading in Europe come from the stock markets in Asia in the morning. Supported by an upturn in US futures triggered by Amazon, the Japanese Nikkei, which comprises 225 stocks, ended the weekend with an increase of 0.7 percent to 27,440 points.

Euro still above 1.14 dollars

The euro is betting on yesterday’s gains. The prospect of rising interest rates in the euro area is giving the European common currency further momentum. In early trading, one euro is trading as high as $1.1471. An ounce of gold costs $1806.

Thyssenkrupp holds annual general meeting

The industrial and steel group Thyssenkrupp will hold its general meeting from 10 a.m. Because of the pandemic, the shareholders’ meeting is taking place online for the second time. A main topic will be the future of the steel division. In her previously published speech, CEO Martina Merz emphasized that the steel business would continue to be examined.

Talanx surprisingly creates its first billion-dollar profit

The insurance group Talanx (HDI) made its first billion-dollar profit a year earlier than planned. According to preliminary figures, the surplus for 2021 is EUR 1.01 billion, said the majority owner of the reinsurer Hannover Re. The group thus exceeded both the expectations of analysts and its own target.

Snapchat numbers reassure investors after Facebook crash

The makers of the photo app Snapchat have been able to convince skeptical investors with fresh business figures. In the wake of the Facebook price crash, Snap shares collapsed by more than 23 percent yesterday. But when Snap presented its own numbers after the US stock market closed, the mood changed. The price jumped more than 47 percent in after-hours trading within minutes.


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