Market report: Stabilization after a bout of weak point? | | EUROtoday

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market report

Status: 10.07.2024 09:19 a.m.

The DAX bulls suffered a extreme setback yesterday. Now they’re attempting to drag themselves collectively once more. But there’s a lack of optimistic impulses that might assist the DAX get again on the highway to success.

After yesterday's bout of weak point, the DAX began midweek buying and selling with slight value good points. The German main index rose by as a lot as 0.4 p.c to 18,310 factors within the first jiffy of buying and selling. But there could be no discuss of a development reversal, because the dangers on the German inventory market are at the moment too nice.

The French inventory market particularly is more and more changing into a burden for the DAX. The French main index CAC40 fell by 1.6 p.c yesterday – and likewise dragged the German inventory market barometer down with it. The DAX ended up dropping 1.3 p.c.

With yesterday's value slide, the technical image within the DAX has additionally change into considerably clouded once more, because the German main index not solely had to surrender its 50-day line. The main index additionally fell again into the short-term correction development (at the moment at 18,293 factors). The subsequent necessary assist is now at 17,951 factors, the low from June 14, as HSBC professional Jörg Scherer underlines.

Investors are nonetheless attempting to interpret Fed Chairman Jerome Powell's latest statements to the US Senate Banking Committee. Powell refused to offer a transparent timetable for rate of interest cuts, says Alvin Tan of monetary companies supplier RBC Capital Markets.

Analyst Jochen Stanzl from dealer CMC Markets, then again, is cautiously optimistic: “The fact that Powell is not rowing back, even though the markets have zeroed in on interest rate cuts from September, could already be a cautious signal that the Fed is actually preparing for such a step.”

Powell's feedback had already despatched Wall Street trying to find path yesterday. The Dow Jones index of ordinary values ​​closed 0.1 p.c decrease at 39,291 factors. The technology-heavy Nasdaq, then again, improved by a reasonable 0.1 p.c to 18,429 factors. The broad-based S&P 500 rose barely to five,576 factors.

Meanwhile, combined alerts are coming from the Asian inventory markets this morning. In Tokyo, the Nikkei index, which includes 225 shares, was 0.6 p.c larger at 41,832 factors on the finish of buying and selling. In China, nonetheless, the newest inflation information had spooked buyers: shopper costs in China rose for the fifth time in a row in June, however fell wanting expectations resulting from weak demand. The Shanghai inventory trade misplaced 0.7 p.c.

In early overseas trade buying and selling, the euro gained 0.1 p.c to 1.0821 {dollars}. The gold market can be on the rise: a troy ounce of the yellow treasured steel prices slightly below 2,370 {dollars} within the morning, 0.2 p.c extra.

Oil costs continued to fall in the course of the week. The North Sea Brent crude fell by 0.7 p.c to 84.04 {dollars} per barrel (159 liters) – regardless of falling US inventories, which are literally a sign of secure demand.

VW shares are in concentrate on the German inventory market this morning. Due to weak demand for its luxurious electrical automotive, the Audi Q8 e-tron, the Wolfsburg-based firm is placing its plant in Brussels to the check and slicing its forecast. If the manufacturing facility closes, it could be the primary time in a long time that Volkswagen has closed a plant.

The group is now getting ready for added prices of as much as 2.6 billion euros. The working return on gross sales might be between 6.5 and seven p.c, half a proportion level decrease than beforehand forecast.

In view of sturdy demand and elevated short-term freight charges, the delivery firm Hapag-Lloyd has raised its earnings forecast for 2024. The group's earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) at the moment are anticipated to be within the vary of three.2 to 4.2 billion euros as an alternative of two.0 to three.0 billion euros, and the working outcome (EBIT) in a variety of 1.2 to 2.2 (beforehand: zero to 1.0) billion euros.

A 3-day strike that started on Monday at South Korean know-how big Samsung Electronics might be prolonged indefinitely, in line with the union. The National Samsung Electronics Union justified the transfer in an announcement by saying that administration was not keen to speak.

The increase in synthetic intelligence (AI) continues to drive the Taiwanese chip producer TSMC. In June alone, gross sales jumped by 33 p.c to 207.87 billion Taiwan {dollars} (5.9 billion euros). Cumulatively, gross sales within the second quarter elevated by 32 p.c to 673.51 billion Taiwan {dollars} (19.1 billion euros). The group, whose clients embrace Apple and Nvidia, thus exceeded analysts' estimates.

A deliberate billion-dollar deal between Oracle and Elon Musk's AI startup xAI has fallen via. The xAI and Tesla boss Musk introduced on his quick message service X that they’d now construct a knowledge middle themselves with 100,000 Nvidia H100 processors. The media outlet “The Information” had beforehand reported that Oracle thought of the development time demanded by Musk to be unrealistic.