Dusseldorf There is still a friendly mood on the German stock market, even if the Dax has slipped back into the red in the meantime. In midday trading, the leading index is slightly up at 14,329 points.
The Dax is robust despite weak targets from the USA – this shows how strong the ongoing upward movement on the German stock market is. On Monday, the Dow Jones index, which is also industrial-heavy, lost around one percent in the last hour of trading on Wall Street and closed with a minus of 0.6 percent. Fed banker Christopher Waller put a damper on speculation that the US Federal Reserve would raise interest rates less aggressively.
With 14,431 points, Monday trading in Frankfurt brought a new high of the 2500-point rally since the end of September. Even if the stock market barometer is considered susceptible to consolidation due to the rapid increase: If the Dax rises above the daily high on Monday, the 14,709 point mark is the next target. This is where the high for the stock market month of June is.
Nevertheless, after an increase of more than 18 percent since the end of September, an imminent pause for breath or consolidation is likely to be the norm rather than the exception. Such setbacks are more likely to be considered healthy and should not change anything in the intact upward trend.
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At the latest when prices are just below the 14,000 point mark, there should be greater interest in buying again, which promises to hold the Dax at least for a short time. Investors would only have to reassess the technical chart situation if they were below the 200-day line, which is currently 12,589 points.
As a reminder: the last consolidation at the beginning of November ended after just three days. After a minus of only around 400 points, the Dax confirmed its breakout level of 13,020 points in an exemplary manner and then climbed further up. However, a repeat of such a brief consolidation as at the beginning of November would come as a surprise.
Significant price gains in Asia
The first face-to-face meeting between US President Joe Biden and Chinese President Xi Jinping is well received on the trading floor. Investors hope for an improved relationship between the two superpowers. There is little concrete evidence. But sometimes the stock market is just psychology.
Hong Kong’s Hang Seng stock market index rose 3.9 percent on Tuesday. In the past two weeks, this stock market barometer has climbed 23 percent, but has lost 37 percent since the beginning of the year. Shares in the Chinese technology giant Tencent and the online retailer Alibaba rose by around ten percent.
Wholesale prices fall month-on-month
Consumer prices in the US have recently risen less than expected. This had caused a price jump on the markets. Accordingly, great attention is paid to the US producer prices, which will be published this Tuesday and are used as an indicator for the further development of consumer prices. Analyst Jochen Stanzl from CMC Markets says: “What investors definitely don’t want to see anymore are new indications of a jump in price action.”
The prices in the German wholesale market have already provided a good template. They rose at the slowest pace in October since the beginning of Russia’s war against Ukraine. They increased by 17.4 percent compared to the same month last year. This is the smallest increase since February, when the war began and many raw materials and intermediate products became more expensive. In September there was still an increase of 19.9 percent.
The peak so far was reached in April with an increase of 23.8 percent – the strongest increase since the statistics were introduced in 1962. Compared to the previous month of September, wholesale prices fell by 0.6 percent because mineral oil products, for example, were cheaper.
The euro rose 1.1 percent on Tuesday to $1.042, its highest level since early July. “The markets are being driven by two factors at the moment. One is optimism that inflation data is peaking in the US… and on top of that, we have growing optimism that China may adopt more pro-growth policies,” said Lee Hardman, currency analyst at MUFG.
Look at the individual values
Varta: The battery manufacturer is putting the construction of a factory for lithium-ion batteries for electric cars on hold for cost reasons. “The construction of the new factory for the round cell/V4Drive will only continue after binding customer commitments,” said the company’s interim report published on Tuesday. This is part of a cost-cutting package. However, the operation of the first series production plant will continue as planned and will provide the cells to fulfill the OEM contract with a premium car manufacturer.
Investments in the new product, together with higher costs for raw materials and delayed call-offs for large orders, are squeezing profits. The bottom line is that the MDax group wrote a loss of around 20 million euros from January to September compared to 75.9 million net profits in the same period last year. The stock loses about eight percent.
Even before the announcement, the share slipped significantly because there were delays in the presentation of the final quarterly figures. The company was unable to release the figures at 7 a.m. as planned and postponed a press conference scheduled for 11 a.m. citing technical problems.
The “Wirtschaftswoche” had already written last week: “The board of directors of the battery manufacturer Varta has recently promised a lot, but delivered little. If that doesn’t change in the short term, restructuring seems inevitable. Money is getting tight.”
Leoni: The auto parts supplier got deeper into the red in the third quarter. The loss before special effects widened to 56 million euros, after three million euros a year ago. The reasons for this are higher raw material and logistics costs that have not yet been fully passed on, as well as a persistently high volatility of calls. In addition, there is a special provision for impending losses due to expected higher costs. Leoni boss Aldo Kamper spoke of a “perfect storm” that the automotive supplier industry was confronted with. The share is down 1.1 percent, but has lost more than a third of its value since the beginning of the year.
Nordex: The wind turbine builder is forecasting a loss at the lower end of the forecast range. Investors, however, are hardly impressed. After initial losses, the stock rose by 2.1 percent. The loss in value since the beginning of the year is minus 22 percent.
Vodafone: Investors sell the title after the quarterly figures and a more skeptical outlook. The British mobile operator’s shares fell by up to 7.6 percent in London. The company is struggling with higher energy costs and weakening trade in Germany, Italy and Spain.
Hypoport: Stocks ended their recent recovery rally on Tuesday for the time being. The papers of the financial service provider fell by 19 percent to 117.80 euros at noon. Since the beginning of November, however, the share certificates listed in the SDax have risen by around 45 percent, albeit at a low level.
In the current year, Hypoport shares have lost around three quarters of their value. In their most recent attempt to recover from the price slump at the end of September, they also failed to close the downward price gap that had opened up at the time. At that time, the company had suspended annual targets due to the difficult situation on the mortgage market.
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