The 14,000 point level has become a key resistance.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt After significant losses at the start of the week, the Dax was initially up on Wednesday. In early trading, the leading index rose by 0.5 percent to 14,464 points. On Tuesday it closed down 1.3 percent at 14,389 points.
There was more movement in the oil price, which had climbed to its highest level in a good two months after the European Union’s partial embargo on deliveries from Russia. On Tuesday, too, the price of Brent from the North Sea rose by one percent to $116.90 per barrel (159 liters).
For investors this Wednesday, the focus is primarily on new economic data. Recently, concerns about a global recession have increased. All major economic areas have problems.
Europe is particularly affected by the consequences of the war in Ukraine because it is heavily dependent on energy imports from Russia. China is struggling with the consequences of the tough corona lockdowns and there are problems in the real estate sector. In the USA, on the other hand, there are fears that high inflation can only be stopped with a very tough monetary policy, which could trigger a recession.
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Given this environment, any data on economic sentiment is of particular interest. In China, the purchasing managers’ index (PMI) of the business magazine “Caixin” rose slightly from 46 in the previous month to 48.1 points, according to data on Wednesday. Below the critical mark of 50 points, however, a decline in industrial activity is to be expected.
The day before, the Purchasing Managers’ Index (PMI) of the statistical office had already shown a similar picture. It rose from 47.4 to 49.6 points. The official index more closely reflects sentiment in large and state-owned companies, which benefit more from the government’s stimulus measures, while “Caixin” captures more of the climate in medium-sized or private companies.
>> Read about this: Lockdowns are also weighing on China’s economy in May – but there is some hope
For the euro area, new figures for the purchasing managers’ index for the manufacturing sector will come at 10 a.m. In the afternoon at 4 p.m. German time there will be new figures for the ISM purchasing managers’ index in the USA.
Individual values in focus
DWS: The fund subsidiary of Deutsche Bank replaced its boss Asoka Wöhrmann a few hours after a raid on suspicion of greenwashing. Stefan Hoops, who previously managed Deutsche Bank’s corporate bank, is to be his successor. The stock was down nearly 4 percent in early trading.
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