Dusseldorf The Dax ended the stock market year 2022 in the red. At the end of the shortened trading day, the leading index closed 1.1 percent down at 13,924 points. Right at the start of trading, the Dax fell back below the psychologically important mark of 14,000 points and was unable to rise above it again in the course of trading. The reasons for this were concerns about the further monetary policy of the central banks, the risk of a recession and the new corona wave in China.
Over the year, the Dax recorded a minus of 11.4 percent. 2022 was the worst stock market year in four years. For comparison: in 2021 the Frankfurt stock exchange barometer rose by 15.8 percent. Even after the Corona year 2020, there was only a minus of 3.7 percent. The loss in the TecDax technology index is even greater: the index lost almost 25 percent over the year.
Positive guidelines came from China and the USA that day. China’s stock markets went up on Friday: Investors are probably counting on falling inflation, and concerns about the corona outbreak in China are taking a back seat for the time being.
It was the same on the US markets: the most important indices also closed in positive territory. Investors were also hoping that a slowing labor market would prompt the US Federal Reserve to scale back its rate hikes. The number of weekly initial jobless claims, which was released on Thursday, remained near its all-time low at 225,000.
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The robust US labor market also boosted the leading German index Dax on Thursday: It closed the trade at 14,071 points, up around one percent. Jochen Stanzl, analyst at online broker CMC Markets, sees a technical reaction to the recent rally: “If prices are rising but the trading volume is almost non-existent, at least a little skepticism is appropriate.”
The 14,000 point mark had proved to be particularly stubborn resistance over the past few trading days – the Dax has not been able to sustainably overcome this level since the meeting of the Council of the European Central Bank (ECB) on December 15. Jumps over it were – like the one on Thursday – only of short duration.
From a technical point of view, the 13,800 point mark is initially relevant, this is where the Dax has been at its lowest point since mid-November. Above the 14,000 level, investors are looking to the 14,150 level as the next key resistance. This is the lower limit of the several weeks of sideways movement of the Dax before the ECB interest rate decision.
On the last trading day of the year, there was again little impetus for the Dax: the trading volume is usually low between Christmas and New Year. On Friday, only about 11.3 pieces changed hands – an average of more than 77 million this year.
This is mainly due to the fact that hardly any professionals trade on the stock exchange between the holidays. It is primarily private investors who are adjusting their portfolios – so even small impulses can cause movement on the markets.
On Friday there is only one date relevant to the stock market: data on the mood of purchasing managers in the USA are expected in the afternoon – but only after the close of trading. Trading ends in Frankfurt at 2 p.m.
In the first stock market week of 2023, on the other hand, there are again a few dates on the program: On Tuesday, the Federal Statistical Office will present the preliminary data on inflation in December in Germany. In November, the inflation rate fell slightly to 10.0 percent.
On Wednesday the Fed will publish the minutes of its December meeting, on Friday the price data for the euro zone and the monthly US jobs data will be published.
Look at other asset classes: oil, euro, dollar, yen, bitcoin
the oil prices fell again on Friday. A barrel of North Sea Brent for delivery in March cost $83.03 at midday. The price for a barrel of the American West Texas Intermediate (WTI) variety for delivery in February was last almost unchanged at $78.03.
The corona wave in China has dampened hopes of a rapid economic recovery in the economy and thus greater demand for crude oil.
Of the Euro was trading at $1.0662 on Friday. The course was thus slightly below that of the previous evening. The ECB last set the reference rate at $1.0649 on Thursday afternoon.
Of the Japanese yen could, on the other hand, post price gains. The Japanese central bank continued to buy government bonds on the market. The Bank of Japan recently caused a stir with a surprising tightening of its monetary policy. Central bank chief Haruhiko Kuroda had recently contradicted the speculation that arose about a change in monetary policy. Market observers also assume that the central bank will try to curb speculation.
>>Read here: New signals to the markets: Japan’s central bank governor reorganizes steps
Of the Bitcoin records the largest annual loss since 2018. After substantial price gains in recent years (plus 305.1 percent in 2020, plus 59.8 percent in 2021), the price has fallen by more than 64 percent since the beginning of the year. A Bitcoin last cost 16,515 US dollars.
Look at individual values:
Energy office: The papers of the Bremen developer of wind and solar parks lost 2.4 percent. Energiekontor is selling a wind turbine in Lower Saxony to the Danish investor Difko.
Fresenius Medical Care: The group took the lead in the Dax with an increase of 0.8 percent. Since the beginning of the year, however, the share has lost almost 47 percent.
limit: The leasing specialist has announced that it will buy four more franchise companies for a total of EUR 3.5 million. The papers closed 0.3 percent up.
Sartorious: The laboratory supplier is making faster progress with its growth plans than initially thought. The Dax group gained 3.9 percent on Thursday in view of this announcement. On Friday, the papers lost 0.6 percent.
Luxury brands: The new corona wave after the easing of the strict corona policy in China is causing problems for shares in European luxury groups. The Louis Vuitton mother LVMH, the luxury jacket manufacturer Moncler, the watch and accessory brand Hermes and the fashion group Kering lose between 0.7 and 2.1 percent. China is considered the core market for the fashion industry. The easing initially fueled hopes for numerous Chinese shopping tourists.
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