Dax closes above the 13,000 point mark – gas price rally continues unabated

Dusseldorf The German stock market is recovering somewhat from the price losses of the past two trading days. The Dax closed in the evening at 13,171 points. The leading German index has thus been able to defend the 13,000-point mark during its six-day breather after the 1,000-point rally from early to mid-July.

However, the crucial question is: Are there enough buyers who can drive the Dax up? A look at the calendar raises doubts. During the holiday season, even fewer new investors get on board. This can be seen from the recently well below-average retail sales.

Quarterly figures and company outlooks met with mixed reactions on the German stock market in the middle of the week. For example, investors were happy about the business development of Mercedes-Benz. The automaker raised its targets, and the shares gained 2.76 percent. The sporting goods manufacturer Adidas, on the other hand, disappointed with a reduction in the forecast, the papers lost three and a half percent. Puma also fared similarly to rival Adidas. At first, the shares went up clearly at noon, but the shares lost 3.9 percent at the close.

The reporting season in Germany is now really gaining momentum. The chemical group BASF and the diagnostics specialist and laboratory service provider Qiagen raised their forecasts. Qiagen was 0.86 percent higher. BASF, on the other hand, was down 1.16 percent, the threat of Russia’s gas supply freeze being the sword of Damocles.

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After strong results in the second quarter, Deutsche Börse is also becoming somewhat more optimistic. The stock exchange operator’s shares gained two percent. A stockbroker described the quarterly figures of Deutsche Bank as mixed. He praised the earnings development, but warned of the high costs. The papers lost more than two percent.

Gloomy prospects for global car production make the car supplier and armaments group Rheinmetall more cautious for the current year. However, nothing changes in the profit outlook. Things continue to run smoothly in the armaments division. The Rheinmetall shares quickly made up for the sharp price losses they had suffered in the meantime, and most recently rose by 1.6 percent.

Gas price rises to over 220 euros

Concerns about the security of supply caused the European natural gas price to rise to more than 200 euros per megawatt hour for the first time since the beginning of March. And this rally continues this Wednesday.

The price is currently 205 euros, an increase of around four percent compared to yesterday’s closing price. However, the daily high was EUR 227.50. This is the TTF futures contract for Dutch natural gas, which is considered to be a trend-setter for the European natural gas market. The reason for this is the announcement by the Russian natural gas company Gazprom that, starting today, it will further reduce the gas flow through the Nord Stream 1 Baltic Sea pipeline from 40 to 20 percent of the capacity.

Since the Ukraine war and the severe sanctions imposed by mostly Western countries, the danger of a natural gas freeze from Russia has increased. This would hit the European economy hard, as many countries are heavily dependent on Russian gas supplies. Since the start of the week, i.e. since Monday morning, the price has increased by around 38 percent.

After the start of the Ukraine war at the beginning of March, the gas price rose significantly, but at that time only the short-term futures contracts. The picture has now changed. Now long-dated futures contracts are also trading at or near record highs. From this it can be deduced: A longer-lasting energy crisis is now expected on the market.

What signals is the US Federal Reserve giving?

However, there should be a new directional decision this evening. Because after the market close in this country, the US Federal Reserve announces its interest rate decision. It’s not so much about the decisionid about the new rate level, but about the signals for the next meeting on September 21.

A 75 basis point hike is considered a foregone conclusion – anything else would be a complete surprise. Market participants are still divided on the further increase at the end of September. According to the Chicago Stock Exchange CME’s Fed Watch tool, 50 percent expect an increase of 50 basis points, 42 percent expect an increase of 75 basis points. So if there are signals for further significant increases, it should be difficult for the Dax to hold the 13,000 point mark on Thursday.

Look at the individual values

Deutsche Bank: Despite higher provisions for bad loans and recession worries, Germany’s largest bank has increased its profits by more than half, exceeding market expectations. However, the share lost 0.79 percent because Deutsche Bank gave up important goals for 2022.

MTU: The Munich-based engine builder surprisingly increased its earnings sharply in the past quarter. “The development of traffic figures in the passenger and cargo areas and the demand for new aircraft, especially narrowbodies, point to a sustained recovery in our industry,” explained CEO Reiner Winkler. However, the share loses 1.16 percent.

Eckert & Ziegler: The Berlin medical technology provider has had a significantly better second quarter. The share rose by 8.4 percent.

Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.

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