Market report: DAX starts higher

The German stock market started the day slightly higher. In early trading, the DAX was 0.4 percent higher at 25,360 points.

On Tuesday, the leading German index drifted slightly into the red to 25,259 points after a strong start.

The market is being supported by a temporary recovery in technology stocks in Asia. In the end there wasn't much left of it. In Tokyo, the Nikkei index closed virtually unchanged. After a significant plus, the South Korean Kospi even slipped slightly into the red.

Investors continued to be concerned by competitive pressure in the semiconductor sector. However, the chip manufacturers Samsung Electronics and SK Hynix, which had come under fire, increased slightly.

Wall Street also weakened last night. The Dow Jones lost 0.4 percent. However, the technology stocks on the Nasdaq only lost a moderate 0.2 percent.

After all, Apple shares reached a new record high and thus supported other technology stocks.

Investors are now looking forward to the progress of the reporting season for the third quarter. Yesterday, four major American banks reported some brilliant profits, but their shares were still under pressure. Bank of America and Morgan Stanley will follow today before the US stock market starts. In Germany the season doesn't start until next week.

At the moment, investors are primarily hoping that a strong reporting season could push concerns about high oil prices and rising bond yields into the background. "Many investors are relieved that markets may now be looking more at corporate earnings and less at the bond market, persistently high oil prices and high interest rates," said Jake Dollarhide, head of asset management company Longbow Asset Management.

Oil prices could also play a role today. The price for a barrel of North Sea Brent is currently slightly over $106.

The most important economic date of the day is the inflation data in the USA at 2:30 p.m. (CEST), which promises further information about the interest rate rate of the Federal Reserve (Fed). Market participants currently expect by a clear majority that the Fed will not change its key interest rate at its next meeting on October 28th.

Positive impulses come from ASML. The Dutch chip supplier assumes that the supply currently planned for 2027 and 2028 will not fully cover customer demand. ASML is therefore examining options to increase capacity for 2028 beyond the already communicated increase of 30 percent. Sales and profits increased significantly in the third quarter.

According to a media report, Lufthansa is about to join the Portuguese airline TAP. The German group will be awarded a 44.9 percent stake and thus prevail against rival Air France-KLM, the television station SIC reported on Tuesday evening, citing insiders. The Portuguese government wants to decide on this at an extraordinary cabinet meeting on Wednesday.

Evotec shares are in demand in the SDAX. The active ingredient developer published key data for the third quarter yesterday evening. Sales and operating results exceeded the average analyst forecasts. Evotec also confirmed the annual targets that were only lowered in mid-July. Just yesterday the paper fell to its lowest level in 13 years at 2.406 euros.

Also yesterday evening, the wind farm developer PNE cut its annual earnings expectations. The SDAX company spoke of a difficult environment and delayed sales. In early trading, the shares lost 18 percent to their lowest level in six years.