Some DAX buyers recently used the lower prices to get started and thus achieved an important stage victory. The bulls could come out on top again at the start of the week.
After the price turbulence of the previous week, the DAX should start the new stock market week with a strong impact. Banks and brokers rate the 40 German standard values 1.4 percent higher at 15,536 points. However, the forthcoming central bank meetings this week call for caution.
These are now important brands in the DAX
From a technical perspective, the DAX bulls solidly defended an important holding zone at the low of 15,123 points on Friday: A slide below the 15,000 point mark would have threatened to intensify the downward momentum.
On the upside, keep an eye on Thursday’s high of 15,582. Should the DAX overcome this resistance, it could subsequently also conquer the 200-day moving average above 15,600 points. Then the greatest downside risk in the DAX would be banned for the time being. Only then could investors hope for rising prices again in the medium term.
Monetary policy as an uncertainty factor
The high volatility, i.e. the fluctuation range of the prices, is likely to continue in the new week. The uncertainties and risks, especially with regard to the monetary policy of the major central banks, are too great. Meetings of the Bank of England and the European Central Bank (ECB) are on the agenda for this week. According to experts, it is questionable how much longer the ECB will be able to turn a blind eye to the persistently rising inflation rates and stick to its loose course.
Last week, the US Federal Reserve (Fed) announced a more aggressive rate hike cycle. The market is now expecting five rate hikes this year, starting in March. Rising interest rates make investing in stocks less attractive.
Are markets underestimating the Fed?
“We caution that markets undervalued the Fed’s rate hikes at the start of the last two rate-hike cycles, and we believe this will be the case again,” said Ethan Harris, Bank of America’s chief economist.
“We expect the Fed to hike rates by 25 basis points at each remaining meeting this year beginning in March, for a total of seven hikes and four more next year,” he added. “This would increase the key interest rate to 2.75-3.00 percent by the end of 2023, which should slow down growth and inflation.”
Nikkei starts the new week with gains
Not least thanks to the tailwind from Wall Street, the Asian stock markets are up in the morning. The 225 Nikkei index closed 1.1 percent higher at 27,002 points. The Shanghai Stock Exchange will be closed today for a holiday.
Dollar and Euro with slight losses
The euro gained 0.1 percent in Asian currency trading at $1.1163. The European common currency can thus break away from its recent low. In the previous week, the euro had fallen to $ 1.1122, its lowest level since mid-2020.
The gold price continues to suffer from the increased interest rate expectations and the strong dollar. A troy ounce of gold in the morning costs 1788 dollars, 0.1 percent less than the previous day.
Telekom boss’s salary under criticism
In the DAX, the focus is on the Telekom group. Politicians of the SPD and Greens criticize the planned salary increase of group boss Höttges by 300,000 euros. The state is a co-owner of Telekom. According to a media report, the subsidiary T-Mobile US wants to part with employees if they are not fully vaccinated against Corona by April 2nd.
Siemens Gamesa management under pressure
After Siemens Gamesa’s profit warning, the management around company boss Andreas Nauen is under pressure, according to “Handelsblatt”. The renewed bad news would have consequences, the newspaper quoted from Siemens Energy company circles. Recently, rumors have been circulating on the market that Siemens Energy could take over Siemens Gamesa completely.
Car manufacturer Daimler changes company name
The car manufacturer Daimler AG will officially say goodbye to its company name on Tuesday (February 1) and will then be called Mercedes-Benz Group AG. The CEO, Ola Källenius, thus completes a far-reaching corporate restructuring that began at the end of last year with the spin-off of the truck business from Daimler Truck.
Sixt complains about bottlenecks in new cars
Germany’s largest car rental company Sixt continues to get fewer new cars than it actually needs. “If we had more cars, we could do significantly more business,” CEO Alexander Sixt told the “Handelsblatt”. “For all market segments, we are assuming the same or increasing market volume in 2022, but with significantly fewer vehicles and with prices tending to rise as a result.”
Spotify takes action against misinformation about Corona
In the coming days, the streaming service Spotify wants to provide all posts about Covid-19 with a note that is intended to lead users to scientifically sound information from reliable sources. Previously, several artists, including Neil Young and Joni Mitchell, had announced they were pulling their music from Spotify. They are thus protesting against a Corona podcast that has been criticized by numerous scientists as trivializing.