Dusseldorf At the end of trading, the leading German index was 0.5 percent higher at 15,538 points. Among other things, predominantly positive quarterly reports and outlook had a supportive effect.
Only when the Dax falls below this mark for a long time could a trend reversal be imminent. The same applies to the top: If the Dax sustainably exceeds the high for the year, i.e. with the closing price of the trading day and the following day, the rally should continue.
This Thursday some publications occupied the investors. On the one hand, the statistics office Eurostat announced the final consumer prices for the euro zone in January. These increased by 8.6 percent. The first estimate was slightly lower at 8.5 percent. For this first calculation, the German data first had to be estimated.
Important signals also came from the USA: the Fed minutes from the beginning of February were published there on Wednesday evening, after the close of trading in Frankfurt. According to them, “almost all” members of the Monetary Policy Committee are in favor of a rate hike of 0.25 percentage points. Only a few representatives therefore advocated a larger increase of 0.5 percentage points. The minutes are an indicator that the Fed is slowly approaching a possible end point of its rate hike cycle.
However, the minutes also show that the dangers of inflation remain a key factor for central bankers in the direction of monetary policy. The key interest rates must therefore be raised further and kept at a high level until inflation is clearly on a path towards two percent, it is said.
“The market takes this neither positively nor negatively, so the general direction of the stock markets should not change significantly,” said market analyst Frank Sohlleder of trading house Activtrades.
The situation on the labor market remains an important criterion for the central bankers. The US Department of Labor released the number of weekly initial jobless claims in the afternoon. Accordingly, the number of applications for unemployment benefits in the US unexpectedly fell to its lowest level in four weeks. Initial jobless claims fell 3,000 to 192,000 last week. These numbers suggest continued tightness in the labor market.
Investors pay particular attention to jobs data like this because it is believed to be a key determinant of how far the Fed will hike rates. The following applies: the more stable the labor market, the more likely it is that interest rates will rise.
Another interest rate decision was pending in Turkey: the Turkish central bank decided to lower the key interest rate again – by 0.5 percentage points to 8.5 percent – despite high inflation and the effects of the earthquake. While central banks around the world are raising interest rates to fight inflation, Turkey’s central bank is cutting interest rates despite inflation currently exceeding 57 percent.
Look at the euro and oil
Oil prices recovered a small portion of their previous day’s losses on Thursday morning. A barrel (159 litres) of North Sea Brent for delivery in April rose to US$81.85. The price of a barrel of the American West Texas Intermediate (WTI) variety rose to just over 75 dollars.
Wall Street expert Koch: “Bloody prospects across the board”
Oil prices are also influenced by monetary policy. Investors expect that the big central banks will take action against the high inflation for a while longer. The higher interest rates then in turn slow down economic growth and thus also the demand for crude oil.
As a result of the robust US economic data, the euro temporarily fell below 1.06 US dollars on Thursday. At the low, the common currency cost $ 1.0586. This was the lowest level since early January. In the afternoon, the euro recovered a little and cost $1.0605.
Look at the individual values
Car1: The online used goods retailer reports an adjusted operating loss of 165.6 million euros for 2022. In the current financial year, the company only wants to make a loss of 60 to 90 million euros. The papers gained almost two percent in the meantime, but gave up their gains again in the course of the afternoon.
skinny: The mechanical and plant engineering company Dürr increased its sales and profits significantly last year. With a jump of 22 percent to 4.3 billion euros, sales in 2022 exceeded their own target range and reached a record value. The papers still lose almost 2.3 percent and are the bottom of the MDax.
Heidelberg Material: The prospect of increased sales in the current year boosted the shares of Heidelberg Materials. The papers of the building materials group go up by about one percent.
Fielman: Last year, the glasses manufacturer recorded a 24 percent lower net profit of around 110 million euros. The dividend for the past year is to be halved to 75 cents. The company’s stock fell 3.1 percent.
Fresenius and FMC: The shares of Fresenius and its subsidiary FMC were at the bottom of the Dax. Fresenius shares lose 4.4 percent, FMC shares fall 5.4 percent. On Wednesday, Fresenius outlined the restructuring of the group more clearly and also wants to remove the dialysis subsidiary from the balance sheet.
Knorr brake: The train and commercial vehicle supplier recorded an operating profit of 794.6 million euros for 2022 a year ago and thus significantly less than before. The company is also preparing for challenging times in 2023. Inflation will be clearly felt, said CFO Frank Weber on Thursday when presenting the business figures for 2022. The company had recently been successful in price negotiations, including in the train business, and is also working on being able to push through higher prices.
After initial losses, the shares are still gaining and are trading 2.6 percent higher. The experts at DZ Bank referred to the strong order intake last year. “In the medium term, we see good chances that Knorr- Bremse will benefit from the reopening in China.”
Munich Re: The reinsurer exceeded its profit target last year and increased its net profit by 17 percent to 3.42 billion euros. The group is also confident for the new year. The share still loses 1.8 percent, making it one of the weakest stocks in the Dax. Analysts praised the fact that the reinsurer exceeded its profit target. However, some things are already included in the courses. “In view of the strong price development in 2022, we should see a breather in the stocks today,” said the analysts at JP Morgan. In the past twelve months, the titles have increased by around 26 percent.
Telecom: In Germany, investors look primarily at company figures: Deutsche Telekom presented its annual figures for 2022 before the start of trading. Last year, the group increased its sales by 6.1 percent to around 114.4 billion euros compared to the same period last year.
Adjusted for special effects, earnings before interest, taxes, depreciation and amortization including leasing costs rose by 7.7 percent to 40.2 billion euros. This year, the Dax group wants to increase its operating profit including leasing costs by four percent to almost 41 billion euros. Telecom papers add 0.3 percent.
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