Dusseldorf. The recovery on the German stock market is stalling. The leading German index starts trading at 25,220 points, down 0.8 percent. The Dax has only ended one trading day in the red in October, as data from LSEG shows.
The leading index is currently trading above the 200-day line. This represents the average of the period and represents the long-term trend. The line currently runs at 24,847 points. The Dax is currently above that. This indicates an overarching upward trend. There is an overarching downward trend below.
This Wednesday, the central bank will publish the minutes of the meeting after the close of trading in Germany. Investors hope to gain insight into the monetary authorities' internal discussions about the future course. Market participants are currently pricing in another interest rate hike this year. In September, the central bank raised the key interest rate for the first time in around three years. It is now in a range of 3.75 to 4.0 percent.
In Europe, directors of the European Central Bank (ECB) are speaking out against the backdrop of turmoil in the bond markets. Accordingly, investors are likely to look at the uncertainties of the past few weeks this Wednesday: high yields, rising oil prices and interest rate policy.
Overall, investors in the German stock market are currently finding it difficult to make bold investments in German stocks, notes Jochen Stanzl, chief analyst at Consorbank. “While Wall Street is celebrating new records, investors in Germany are unfamiliar with the concept of a year-end rally – the devaluation of the euro and political worries are eating away at their confidence.”
The Nasdaq technology exchange index and the broad S&P 500 index reached records yesterday, Tuesday. An extensive stabilization in the oil and bond markets ensured the rising prices on the stock markets.
The yield on 30-year US government bonds recently fell to 5.6471 percent, after reaching 5.702 percent the day before, its highest level since 2002. There were also signs of relaxation on the European bond markets. This was particularly clear in France.
French presidential candidate Marine Le Pen, leader of the Rassemblement National, proposed in a budget plan to reduce the national deficit to below three percent of gross domestic product by 2032. This brought some calm to the bond market after the growing national debt and political uncertainty in France had recently caused yields to rise sharply and in turn had weighed on the European stock market.
In addition, oil prices were more stable yesterday, Tuesday. However, experts urged caution as the price of North Sea Brent crude oil continued to hover around the $100 mark. The price rose again on Wednesday - and pushed the price for a barrel (159 liters) of Brent for delivery in December above the mark. The background is new tensions in the Iran conflict.
According to the head of the International Monetary Fund (IMF), these will be reflected in the energy markets for some time to come. “Price pressure could further intensify as demand increases with the start of the cold season in the northern hemisphere and countries replenish their reserves,” Kristalina Georgieva warned in a speech in Singapore ahead of the annual meetings of the IMF and the World Bank, according to the manuscript. Even if the conflict ends soon, prices are likely to remain high until 2027, Georgieva said. The conference begins next week in Bangkok.
Porsche: The sports and off-road vehicle manufacturer Porsche will present its strategy for the coming years at a capital market day on Wednesday. The shares were up more than four percent at the start of trading.
