Market report: investors are taking courage again

Market report

Status: 11.01.2022 7:52 a.m.

Market observers expect the DAX to start the trading day with a solid plus. However, investors are unlikely to get too involved ahead of key US inflation data on Wednesday.

Banks and brokers see the DAX at the start of trading around 0.8 higher to around 15,880 points. Apparently, some investors see a favorable moment to re-enter after the recent price losses: Yesterday, the DAX was 1.1 percent lighter at 15,768 points. Since last week, rising inflation and the associated fear of a noticeable tightening of monetary policy by the US Federal Reserve (Fed) have remained the most important topic in the financial markets.

Inflation as the main issue

“One thing is certain, the subject of inflation is currently at the top of the risk list of investors,” said Jochen Stanzl, chief market analyst of the trading house CMC Markets. The developments regarding the pandemic and the spread of the Omikron variant are currently only playing a minor role.

Dow Jones in reverse

In the USA, prices continued to fall at the start of the week, albeit not particularly sharply: The Dow Jones closed 0.5 percent lower on Monday to 36,068 points. The technology-heavy Nasdaq stagnated at 14,942 points. The broad S&P 500 lost 0.1 percent to 4670 points.

“Goldman now expects four rate hikes in 2022 and that is simply a very hostile environment for technology and growth stocks,” said Thomas Hayes, executive director of asset manager Great Hill Capital in New York. Initially, Goldman Sachs assumed three rate hikes. Investors hoped that the US inflation data due on Wednesday will provide further clues for the possible point in time of the interest rate turnaround.

Investors are therefore also holding back in Asia. The Nikkei index closed 0.9 percent lower at 28,223 points. The broader Topix index fell 0.5 percent and stood at 1987 points. The Shanghai stock exchange was 0.1 percent in the red. The index of the most important companies in Shanghai and Shenzen lost 0.3 percent.

Oil price rises

On the oil market, the prices for a barrel (159 liters) of the WTI and Brent grades are rising again. Bitcoin is also going up slightly, the current price is more than $ 42,000. On December 27th, however, the cryptocurrency was still trading above the $ 50,000 mark, and the trend has been down since then. Investors turned their backs on high-risk asset classes and secured their belongings, said analyst Timo Emden from Emden Research.

Securities deals: Fed vice resigns

Fed Vice President Richard Clarida resigns prematurely after the affair over securities transactions by US central bankers. It was said on Monday that he would take his hat off on January 14th. Clarida’s term expires on January 31st. President Joe Biden has selected Lael Brainard to take the post. According to media reports, Clarida shifted its portfolio in February 2020 a day before an important announcement by Fed chief Jerome Powell. Most recently, media reports said that Clarida corrected its financial information at the end of December. The events join the affair of the trading activities of high-ranking US central bankers, which led to the resignation of two Fed members last year.

China: sales slump for Volkswagen

The Volkswagen Group’s sales in its largest single market in China fell by 14 percent last year. VW China boss Stephan Wöllenstein cited the shortage of semiconductors and problems in the supply chains as the reason in front of journalists in Beijing on Tuesday. “It’s been a pretty difficult year.”

The decline mainly affected the volume brands Volkswagen and Skoda, reported Wöllenstein. The premium brand Audi did less badly with a minus of 3.6 percent. Porsche was able to sell eight percent and Bentley even 43 percent more cars. The overall market had grown by four percent.

Worries for Adidas in the US

The US federal agency ITC is examining whether Adidas can continue to sell its “Primeknit” shoe models in the USA. The International Trade Commission (ITC) initiated an investigation at the request of rival Nike, the agency said. The US competitor has been accusing the sporting goods manufacturer from Herzogenaurach for years of infringing one of its patents with the popular sports shoes. Nike therefore calls on the complaint submitted to the ITC in December to ban the import of these models.

Almost ten years ago, Nike and Adidas launched their “Flyknit” and “Primeknit” shoes, which are knitted from melted yarns, on the market at almost the same time. Since then, the dispute about the models has been simmering. At the same time, the Americans are pursuing a lawsuit against Adidas for patent infringement.

Is Delivery Hero making a profit soon?

The delivery service Delivery Hero expects the loss of its food delivery business to end after the takeover of the Spanish competitor Glovo. The company announced on Monday evening that this would break even in the second half of 2022. In the fourth quarter earnings before interest, taxes, depreciation and amortization (Ebitda) of 0 to 100 million euros can be expected. Delivery Hero confirmed its long-term margin forecast.

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