Dax almost unchanged – investors are waiting for economic data

Dusseldorf At the start of the stock exchange in Frankfurt, investors acted cautiously on Wednesday. In the first few minutes of trading, the leading German index was hardly changed at 15,100 points.

“So far, the Dax has successfully resisted a major setback. However, there is a lack of positive impetus for a further rise in the price,” explained analyst Thomas Altmann from QC Partners. On Tuesday, the Dax closed 0.1 percent lower at 15,093 points.

After the start of trading, the shares of the Leopard tank manufacturer Rheinmetall rose by almost three percent to 229.50 euros, reaching a record high. On Tuesday evening it became known that Germany wants to deliver main battle tanks to Ukraine. The arms company’s stocks have soared 170 percent since Russia invaded Ukraine last February.

>> Read about this: Germany wants to send Leopard 2 main battle tanks to Ukraine

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Only a few impulses came from Asia on Wednesday: The stock markets in China, Hong Kong, Singapore, Malaysia, South Korea and Taiwan remain closed due to the Chinese New Year and will not open again until January 30th. The Japanese stock exchanges recorded slight gains.

Mixed signals are coming out of the US, with the Dow Jones blue chips gaining modestly, but the broader S&P 500 and tech Nasdaq falling somewhat. The focus there was on continuing the reporting season.

In Germany, too, many market participants are waiting for the publication of further economic data and company balance sheets, which are due on Wednesday. “So far, the company figures have not been too bad, but investors are not overjoyed either,” said market strategist Christian Henke from the trading house IG.

The focus is primarily on the e-car manufacturer Tesla and the US aircraft manufacturer Boeing, both of which are presenting their figures.

Investors are also looking to the publication of the business climate index, which the Ifo Institute is presenting for the first time in the new year. Experts expect the barometer to rise to 90.2 points from 88.6 points in December.

The federal government also presents its annual economic report. According to initial information, the government is no longer planning a recession in 2023, but expects the economy to grow by 0.2 percent. In addition, economists expect a slightly lower inflation rate of 6.0 percent.

Since the beginning of the year, the Dax has recorded strong price gains: the leading index has increased by 8.4 percent overall. Market participants are counting on the economic development in Germany not being as bad as initially feared.

Look at the chart technique

The Dax continued to stay above the 15,000 point mark on Tuesday. This area remains in focus. The first stop-loss marks, which investors use to protect themselves against falling prices, are likely to be just below this level.

From a technical point of view, a healthy consolidation would be beneficial. There is further technical support in the area around 14,800 points, as well as short-term around the current price level of 14,980 points. On the upside, the technical resistance lies at 15,365 points.

Look at the euro and oil

Oil prices edged up slightly in early trade on Wednesday. In the morning, a barrel (159 liters) of North Sea Brent for delivery in March cost $86.52. That was 32 cents more than the day before. The price of a barrel of US grade WTI rose by 22 cents to $80.35.

The euro continued to trade near the $1.09 mark on Wednesday. In the morning, the common currency cost $ 1.0895, slightly more than the previous evening. The exchange rate is thus slightly below its highest level for around nine months. The European Central Bank had set the reference rate at $1.0858 the day before.

Look at individual values

Rheinmetall: Rheinmetall shares rose by around three percent. According to media reports, Germany will deliver the Leopard main battle tank, manufactured by the armaments company, to Ukraine. “While the direct financial impact would be limited, it would create a very positive sentiment for the stocks,” said one trader.

More: Which stocks benefit from falling inflation.

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