The leading German index was unable to maintain the recovery gains from the start of the week. At the opening, the DAX fell around 0.2 percent to 25,369 points. On Monday it had gained 0.9 percent to around 25,411 points. One of the things that ensured a good mood was that the ifo business climate index rose for the sixth time in a row.
Investors are still looking for orientation: "In my view, the area around 25,500 points remains the central pivot point for the DAX. Given the high density of appointments, there is something to suggest that the index will initially continue to orientate itself towards this mark, while investors wait for reliable signals," says Salah-Eddine Bouhmidi, market expert at IG.
For a sustainable outbreak, convincing impulses from the company outlook and monetary policy are needed. “However, geopolitical risks remain an uncertainty factor that can transform this wait-and-see attitude into stronger price movements at any time,” says Bouhmidi.
Timo Emden, market expert at CapTrader, also points out certain risks: "On the one hand, the prospect of an economic recovery is tempting, but on the other hand, geopolitical risks and monetary policy question marks are eating away at investors' nerves," he summarizes the situation. For investors, it remains a balancing act in an area of tension between geopolitical risks, monetary policy question marks and fragile technological fantasy, according to Emden's assessment.
The current trading week is tough. On the one hand, the reporting season is slowly reaching a peak. Important technology companies such as Amazon, Alphabet and Microsoft present their balance sheets. “After the recent price losses, it will be crucial whether business keeps pace with the huge investments and whether the outlook creates confidence again,” stated Jürgen Molnar, strategist at broker RoboMarkets, and spoke of a “week of truth”.
During the week, the chemical company BASF, Deutsche Bank and the car manufacturers Mercedes-Benz and Volkswagen, among others, will present their quarterly figures from the DAX. Investors' questions are: How well are companies coping with the difficult conditions? How much of a burden are high energy prices? Are companies still able to achieve higher sales and profits?
In addition to the reporting season, the focus is also on monetary policy. With meetings of the US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of Japan, three important monetary policy decisions are on the agenda.
Today it was the turn of the consumer goods group Beiersdorf from the DAX. Given the high cost of living and rising inflation, consumers are currently paying more attention to the price and are exercising reluctance to purchase. Beiersdorf still kept sales roughly stable in the third quarter. Management was at least able to slow down the downward trend of the most important brand, Nivea. However, one market participant viewed the Tesa division's business as a disappointment.
“In the third quarter, business development across our entire consumer business improved compared to the first half of the year,” said CEO Vincent Warnery. The annual outlook, which was lowered in the summer, was confirmed.
The sports car and SUV manufacturer Porsche AG recorded slightly less business than expected in the third quarter due to lower sales. Sales fell by 7.5 percent to 8.05 billion euros, as the MDAX company announced. Operationally, the car manufacturer from the VW Group earned money again with 387 million euros, after special costs had caused the operating result to plummet to minus 966 million a year earlier. Analysts had a little more on their cards when it came to sales and operating results.
As of today, investors can trade the 40 shares of the DAX companies around the clock at Deutsche Börse. Through its investment in 360X, Deutsche Börse has introduced a model that enables customers to do business with the most important German stock market stocks even outside of regular trading hours. “This is an important step towards a European market infrastructure that is available around the clock,” said Deutsche Börse.
