Dax near record high: Hopes for progress in the dispute over raising the US debt limit drove the German stock market on Thursday. Although trading volumes on the “Ascension Day” holiday remained thin, it was enough for a leap over the 16,200 point im mark in the morning dax
to its highest level since the beginning of 2022. By the afternoon, the leading German index, the Dax, gave up some of its gains and fell back below the 16,200 mark. The previous record high of the German leading index at a good 16,290 points remains within reach.
The MDax for medium-sized companies was also firm on Thursday. He recently gained 1.05 percent to 27,692 points. The Eurozone leading index EuroStoxx 50 rose by 1.1 percent to 4371 points
In the US, hopes of finding a solution to the political dispute over the US budget’s debt ceiling had boosted prices. However, a breakthrough has not yet been achieved. Is there no solution the US is threatened with default in June – with probably serious consequences for the global economy. In the further course of trading there are still some important US economic data in view.
Car manufacturers in Europe were the first to benefit from the renewed willingness to take risks on the part of market players. Among the industry stocks in the Dax, all rose in price Volkswagen by 2.7 percent, Mercedes-Benz Group by 2.3 percent.
CommerzbankStocks topped the auto gains at the top of the index, up 3.8 percent. Banks were generally asked Deutsche Bank about increased in price, although they were traded ex-dividend. Without this discount, the plus would be around three and a half percent.
Also the name Siemens found itself at the top of the course table several times. Shares of SiemensEnergy benefited from a buy recommendation from the US bank Citigroup and increased by 1.4 percent. The papers of the medical technology provider did even better Siemens Healthineers with just under 2.6 percent and Siemens with a two and a half percent premium. With a view to Siemens Energy, analyst Vivek Midha now sees scope for the energy technology group to improve its margins. Also with a view to the wind power subsidiary Siemens Gamesa he now recognizes encouraging signals.
Positive industry news out Japan and a price jump in the sector on the Tokyo stock exchange also caused movement in this country. In the wake of reports of large investments by chip manufacturers in the country, Infineon shares also climbed by a good two and a half percent.
Hope in the debt dispute supports US stock markets
On Thursday, the technology stocks in particular on the US stock exchanges continued the gains they had made in the middle of the week. Overall, there is still confidence that the political dispute over the debt ceiling in the world’s largest economy will be settled in good time. The Nasdaq 100
recently increased by around 1 percent.
The leading index Dow Jones Industrial made up for slight losses from early trading and was last listed 0.2 percent up at 33,478 points. On Wednesday, the stock market barometer rose by 1.2 percent after high-ranking representatives of the Democrats and Republicans spoke of positive signs about the meeting with US President Joe Biden in the White House on the debt crisis. At the beginning of June there could be a risk of default if no agreement is reached.
“Can now see where an agreement is possible”
On Thursday, Republican House Speaker Kevin McCarthy said he expects to consider a debt ceiling deal next week. The negotiating partners are now in a “much better position”. “I can now see where an agreement can be reached,” McCarthy said.
The courses were also supported by quite robust economic data. The weekly initial jobless claims fell more sharply than expected. In addition, the business climate in the Philadelphia region did not deteriorate as much as forecast in May.
Confidence is growing at Walmart
Among the best performers in the Dow, shares of Walmart rose 1.8 percent. The largest retailer in the US is more confident about the year as a whole after a robust first quarter. In addition, Walmart earned less than in the first three months of the previous year, but expectations were still exceeded.
Walmart is well positioned for the year 2024, wrote analyst Robert Ohmes from the investment bank Bank of America. In addition, the expert particularly praised the strength of the grocery business, to which the group’s pricing power contributes.
Micron’s shares rose by a good four percent. According to the Bloomberg news agency, citing those who were informed, Japan wants to give the semiconductor company a US$ 1.5 billion incentive to support the production of next-generation memory chips in the country. In the wake of this, the shares of the chip group Intel
Bitcoin at $27,000
The digital currency Bitcoin is still under pressure and was last listed at 27,355 US dollars. In November 2022, the currency plummeted from over $21,000 to around $16,000 on the back of the collapse of crypto exchange FTX. A year earlier, bitcoin hit a record high of $69,000.
oil prices fall
Oil prices fell slightly on Thursday. At midday, a barrel (159 liters) of the North Sea variety cost Brent
for delivery in July $76.53. That was 43 cents less than the day before. The price of a barrel of the American grade West Texas Intermediate (WTI) for June delivery fell by 42 cents to $72.40.
The market initially lacked clear impetus. The day before, hopes of an agreement in the US debt dispute had caused oil prices to rise. Recently there have been signs of a slight rapprochement between Republicans and Democrats, but a breakthrough is still pending. Without an agreement, the United States is threatened with a default in June – with probably serious consequences for the global economy and thus also for oil demand.
Basically, crude oil has been under pressure for a long time. Since the beginning of the year, prices have fallen by more than ten percent. The main reasons are economic concerns. Observers also referred to the recently noticeable increase in crude oil inventories in the USA. At the same time, demand for crude oil products such as heating oil and diesel has fallen to a very low level.