DAX turns positive: Investors dare to step forward


market report

Status: 12.10.2022 12:25 PM

Stock market investors remain cautious in anticipation of important signals from the US economy and the US Federal Reserve. However, after a trip into the red, the DAX can go to the black.

The leading index is currently well above a thousand with 12,280 points, which is about 0.6 percent above yesterday’s XETRA closing price.

Beware of American signals

US producer prices could give new impetus to the market at 2:30 p.m. German time. They provide information about the general upward trend of prices in the country. Investors are also eyeing the Federal Reserve (Fed) minutes expected tonight. This week also marks the start of the reporting season in the US, which begins with a series of annual reports from the major US banks.

Until then, the situation is likely to remain difficult. “If the annual low in the DAX continues after all the data, there is a chance of a sustainable low,” said market analyst Jochen Stanzl of CMC Markets, “but the downward trend will remain intact while it lasts.”

Wall Street for stable opening

US futures are currently pointing to a robust start for US equity markets this afternoon. Yesterday, the Dow Jones index closed just a hair’s breadth higher, while tech stock Nasdaq posted significant losses. In Asia, too, the minus signs dominated in the morning.

Update economy from 12.10.2022

Stefan Wolff, HR, 10/12/2022 9:49 AM

UK economy in reverse

Many European economies are likely to experience a contraction in economic output in the coming months. Britain’s gross domestic product (GDP) fell by 0.3 percent in August, the ONS statistics agency announced in London today. Analysts were surprised by the development. They had expected a stop.

Euro and oil cheaper

The European single currency traded at $0.9724 in the afternoon, leaving it a long way from parity. Oil is trading slightly below the previous day’s level. A barrel of North Sea Brent currently costs $93.40. US President Joe Biden announced yesterday the consequences of OPEC+ countries’ controversial decision to cut oil production. National Security Council spokesman John Kirby said relations with Saudi Arabia-led oil states are being “reassessed”.

Symrise and Bayer ahead

Shares in the trendsetter Symrise and the chemical group Bayer posted significant gains of about 1.5 percent each, bucking the trend. Shares of chemical dealer Brenntag are clearly down more than four percent. It is suffering from a price target that has been lowered by investment bank Oddo.

Deutsche Telekom wants to save energy

Deutsche Telekom wants to reduce its energy consumption. The board of directors has set itself the goal of reducing consumption in Germany by ten percent by 2024 by shutting down several legacy systems, the company said today. In addition, by 2025, half of the electricity needs must be covered by purchasing agreements with renewable energy producers.

Mercedes-Benz produces cheaper

The car company wants to cut costs in car production by means of digital networks. Thanks to a comprehensive data platform, production costs can be reduced by an additional 20 percent by 2025. 15 percent has already been saved from 2019 to 2022, says production manager Jörg Burzer. For this, Mercedes now uses Microsoft’s Azure cloud technology. This makes the global manufacturing network more resilient in times of geopolitical and macroeconomic challenges.

KlöCo caps weather forecast

Steel trader Klöckner & Co recorded losses in its business activities in the past quarter due to weak demand and falling steel prices and lowered its annual forecast. In operating activities (Ebitda) before significant special effects, a profit of only 16 million euros was made from July to September.

Gerresheimer wins at number

Following growth in the third quarter, the MDAX packaging manufacturer sees itself on track despite inflation and skyrocketing energy prices. “We are on track for the second record straight year of profitable double-digit revenue growth,” said CFO Bernd Metzner. In the third quarter, Gerresheimer realized organic growth in operating profit (Ebitda) of 13.3 percent to EUR 91 million, while sales increased by 17.4 percent to EUR 473 million.

Auto1 sells more

Online used car dealer Auto1 was able to increase the number of vehicles sold only slightly in the third quarter, thanks to a strong increase in the number of private customers. The SDAX company sold a total of 163,500 cars, 4.5 percent more than a year ago. In the private customer business, in which Berliners invest a lot of money through their Autohero brand, sales rose by more than half to 17,150 cars.

CropEnergies benefits from high prices

Mannheim-based bioethanol producer Cropenergies achieved record sales and operating profit in the past quarter. Turnover rose to 450 million euros in the second quarter of the 2022/23 fiscal year. Operating profit multiplied compared to last year and reached 180 million euros. The management cited significantly higher sales of ethanol and a sharp price increase as reasons.

Philips profit warning

A multi-billion dollar impairment loss and ongoing supply chain bottlenecks weigh on medical technology manufacturer Philips. According to preliminary figures, turnover in the third quarter fell by five percent to 4.3 billion euros. Analysts had expected more here in advance. The Dutch group estimates that the adjusted operating result (EBITA) will amount to a maximum of 210 million euros. That is less than half compared to the same quarter of the previous year. The stock loses more than 10 percent.

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