Market report: Question marks after the buying spree in the DAX

market report

Status: 01/28/2022 07:49 a.m

The DAX recovered powerfully from its lows over the course of the week. Bargain hunters grabbed shares again yesterday. The question now looms over everything: How sustainable is the price recovery?

The DAX is likely to start trading at a discount. The broker IG assesses the 40 German standard values ​​​​at the hour 0.4 percent lower at 15,460 points. Negative targets from Wall Street and ongoing uncertainties about the future monetary policy of the US Federal Reserve depressed the buying mood on the German stock market at the end of the week.

DAX retreats from the 200-day line

Yesterday the DAX started deep in the red. But the shock of the investors about a US central bank, which yesterday was rather unclear and tended to be “hawkish”, i.e. in favor of interest rate hikes, dissipated over the course of the day. “Buy the dip” – buy the course setback – is instead the motto of the hour. In the end there was an increase of 0.4 percent to 15,524 points. Yesterday’s high was 15,582.

This makes it clear once again that recapturing the 200-day moving average above 15,600 points will not be an easy task for the DAX bulls. They would only have the upper hand again above this important moving average of the past 200 trading days.

Apple makes $35 billion profit in three months

Tailwind for the markets comes from the Apple figures in the morning. The iPhone group had another record quarter last Christmas and increased its profit by a good fifth to $34.6 billion year-on-year. Sales rose by around eleven percent to 123.9 billion dollars – also a record. The technology group defied the global component bottlenecks that are slowing down the industry.

Dow Jones equalizes profits

The back and forth on the US stock exchanges continued yesterday because of the monetary policy perspectives. Unanswered questions about future Fed policy unsettled investors. As on the last three trading days of the current week, the indices fluctuated between gains and losses on a larger scale.

After a peak increase of 1.8 percent, the Dow Jones Industrial was temporarily in the red. At the close of trading, the standard value index was hardly changed at 34,160 points. The broad S&P 500 lost 0.5 percent to 4326 points.

Losses on the Nasdaq

Meanwhile, tech stocks once again showed relative weakness. The technology-heavy selection index Nasdaq 100 lost 1.2 percent to 14,003 points. Tesla and Intel’s figures did not go down well with investors.

Nikkei with strong gains

Mixed signals are coming from the Asian stock exchanges. While the Japanese Nikkei showed a strong countermovement to its recent price losses with an increase of 2.1 percent to 26,717 points, the Shanghai stock exchange fell 0.3 percent.

Euro with stabilization attempt

The euro is attempting to stabilize after its recent setback. In early forex trading, it gained 0.1 percent to $1.1153. Yesterday, the European common currency fell as low as $1.1133, its lowest level in over a month. The tightening of monetary policy in the USA is giving the dollar a boost across the board.

Gold suffers from tightening US monetary policy

Meanwhile, the strong dollar is also causing problems for commodities denominated in dollars. The gold price is also suffering from the increased interest rate expectations in the USA, as the yellow precious metal itself does not yield any interest. A troy ounce of gold costs 1798 dollars in the morning.

Villeroy and Boch with best results since IPO

The ceramics manufacturer Villeroy and Boch reported its highest earnings before interest and taxes (EBIT) since going public in 1990. The operating result rose to around 92 million euros. Group net sales including license revenues rose by 18 percent to EUR 945 million. Both values ​​were above the forecast presented in September.

LVMH’s business is doing better than before Corona

With better business than before the corona pandemic and record sales, the French luxury goods group LVMH has significantly exceeded analysts’ expectations. Annual revenue rose by almost 44 percent year-on-year to EUR 64.2 billion. CEO Bernard Arnault was confident: LVMH is in an “excellent position to further expand its leading position in the luxury market.”

Credit card giant Visa with profit and sales jump

The US financial group Visa continues to earn brilliantly thanks to flourishing credit card payments. In the three months to the end of December, net income rose 27 percent year-on-year to $4.0 billion, Visa said after the US market closed yesterday. Revenue increased 24 percent to $7.1 billion in the quarter.

Tesla buys its own track for shuttle train to factory

For a better connection to its plant in Grünheide near Berlin, Tesla has acquired an existing track from the German regional railway group DRE. This was confirmed yesterday by a spokeswoman for the Ministry for Infrastructure and Regional Planning. The US electric car manufacturer plans to run a shuttle train at shift change times until the new Fangschleuse train station is commissioned.

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