Despite global losses in technology stocks, the leading German index is stable. In addition to economic data, investors today also look at various speeches.
Price table of the Frankfurt Stock Exchange. Photo: Handelsblatt
Dusseldorf. The German leading index can initially differentiate itself from the technology industry, which is again coming under heavy pressure worldwide. The Dax ended trading on Thursday 0.3 percent higher at 25,383 points.
High losses in shares from the artificial intelligence environment also weighed on investor sentiment on the German stock market. But because there are not many AI profiteers in the Dax and they do not have much index weight, the Dax was robust.
The upward movement continues early Friday morning. On over-the-counter trading platforms, the Dax is trading in positive territory before the trading session.
At the end of the trading week, investors are turning their attention to euro inflation. In addition, heads of various central banks, for example from the USA, Great Britain and Canada, have their say.
1 – Stock exchanges in New York: Dow Jones, S&P 500 and Nasdaq
Concerns about an AI bubble once again weighed on Wall Street on Thursday. The tech-heavy indices lost ground during the day and were only able to recover somewhat at the end of trading.
The Dow Jones standard values rose by around one percent to 52,177 points.
The broader S&P 500 gained 0.3 percent to 7,744 points.
The index on the technology exchange Nasdaq was barely changed at 26,713 points at the end of trading.
The Nasdaq 100, a reflection of the 100 non-financial companies with the highest market capitalization, barely lost any on the day and closed at 29,935 points.
After a sell-off in chip stocks in Asia, the Nasdaq in New York also started Thursday with discounts. Losses at US chip companies add up to more than a trillion dollars within a week, according to data from the financial service Bloomberg. Accordingly, not only the chip industry is affected, but also other stocks in the field of artificial intelligence.
The reasons for this were, on the one hand, doubts about whether they could generate sufficient AI sales. There is also a risk of increasing depreciation on the high-performance computers required for AI applications. An additional burden is the yields on the bond market – also driven by high inflation.
2 – Stock exchanges in Asia
Asian stock markets have recovered after Thursday's sharp sell-off. Japan's Nikkei index is rising after a six-day losing streak. However, gains are limited as investors remain cautious ahead of the upcoming earnings season and the US midterm elections.
In Tokyo, the Nikkei index, which includes 225 values, rose 1.8 percent to 65,550 points
The broader Topix is trading 1.8 percent higher at 4072 points.
The Shanghai Stock Exchange gained 0.8 percent to 3,737 points.
The CSI 300 index with the 300 most important Chinese companies on the mainland stock exchanges rose by 0.6 percent to 4,189 points.
"Stocks are recovering as investors return to trading after sharp losses the previous day. There are no other reasons for the gains," said Daisuke Hashizume, senior strategist at Daiwa Securities. “Market participants see little reason to aggressively buy stocks ahead of the company’s earnings release and the U.S. midterm elections next month.”
In Japan, shares of chip supplier Tokyo Electron rose by 2.1 percent, those of memory chip manufacturer Kioxia rose by 3.3 percent and those of technology investor SoftBank Group rose by 1.3 percent. The securities of chip test supplier Advantest made up for their initial losses and rose by 0.6 percent.
3 – Fed chief speaks
Will the US Federal Reserve (Fed) raise interest rates again at the end of October? Investors are hoping for more clues from the world's most important central banker, Kevin Warsh: The Fed chief speaks with IMF chief Kristalina Georgieva early this morning (German time) at the autumn meeting of the International Monetary Fund (IMF) and the World Bank.
4 – Central bankers dance
Warsh is in good company on Friday: the central bank heads from Great Britain (Andrew Bailey) and Canada (Tiff Macklem) also make appearances, as do Bundesbank President Joachim Nagel and the Vice President of the Japanese Central Bank, Shinichi Uchida.
5 – Euro inflation
The statistical office Eurostat publishes the final data and details on the development of consumer prices in the euro area. According to the initial estimate, inflation made an unexpectedly strong jump from 3.2 to 3.8 percent.
6 – Business figures
The listed companies Investor from Sweden, Schneider Electric from France and Travelers Cos from the USA publish quarterly figures.
7 – EU summit
It is the second and final day of the summit of European heads of state and government. In addition to the dispute over the EU budget, the recent turbulence on the bond markets is also likely to be an issue.
Appointments company
7:00 a.m., Sweden: Investor, Q3 figures
7:30 a.m., France: Schneider Electric, Q3 sales
1:00 p.m., USA: Travelers Cos, Q3 numbers
Related topics
DaxUSAFedNASDAQAsiaDow Jones
Dates economic situation
8:00 a.m., Germany: Building permits 8/26
11:00 a.m., Euro zone: trade balance 8/26
11:00 a.m., Euro Zone: Consumer Prices 9/26 (2nd publication)
11:00 a.m., Italy: Consumer Prices 9/26 (2nd publication)
2:30 p.m., USA: Export and import prices 9/26
3:15 p.m., USA: Industrial production and capacity utilization 9/26
With agency material.
More: Dax is stagnating – What are the pros and cons of a year-end rally on the stock markets?
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