For weeks, the Dax moved at a high level – but within a narrow range. The leading index did not manage to break the 16,000 point mark for a long time – until yesterday. After the dax
cleared this hurdle, it almost seems as if investors wanted to drive the Dax to a new record high on Friday. On Friday, the leading index gradually approached the record high of a good 16,290 points from autumn 2021. Most recently, at 16,277 points, only 13 points were missing. Above all, good news from the USA drove investors’ willingness to buy: dealers justified the positive mood in the morning with the hope that the dispute over the debt ceiling in the United States would soon end.
The MDax for medium-sized companies rose by 0.79 percent to 27,833 points. The Eurozone leading index EuroStoxx 50 gained 0.74 percent to 4399 points.
On Thursday, the Dax rose by 1.33 percent to 16,163 points in thin holiday trading on hopes of a solution to the US debt dispute. The Dax closed above the 16,000 point mark for the first time since the beginning of 2022. Due to the Russian war of aggression in Ukraine and the turnaround in interest rates, the leading German index temporarily fell to less than 12,000 points at the end of September before a rapid recovery began.
In the United States, the White House sees “steady progress” in negotiations to raise the debt ceiling. The US government headquarters announced that President Joe Biden was informed about the status of the negotiations in Hiroshima, Japan, by his team in Washington. Biden is attending the summit of the seven leading democratic industrialized nations in Japan.
Tech stocks particularly in demand on Wall Street
Wall Street supported hopes of a happy ending to the debt dispute on Thursday. The Dow Jones closed 0.3 percent higher at 33,535 points. The tech-heavy Nasdaq 100 advanced 1.8 percent to 12,834 points. The broad S&P 500 gained 0.9 percent to 4198 points. President Joe Biden and leading Congressman Kevin McCarthy reiterated their determination to reach a speedy agreement to raise the debt ceiling and avoid a default.
In terms of individual values, the shares of the network device manufacturer Cisco went on a rollercoaster ride. After a weak start, it worked its way up 1.2 percent to the end. Cisco exceeded the sales expectations of the experts. The network equipment maker relied on improved supply chains in the third quarter, which helped it reduce its backlogs. Chinese retail giant Alibaba turned over less than expected in the quarter. The shares listed in New York fell by more than five percent. US retail giant Walmart delighted investors by raising its full-year guidance. Shares rose 1.3 percent.
Nikkei closes at highest level since 1990
Rising prices in Asia too: In Japan, the Nikkei index reached its highest level in almost 33 years on Friday. The Nikkei on the Tokyo Stock Exchange rose 0.77 percent to 30,808.35 points by the close of Friday trading. That was the highest level since the summer of 1990.
Bitcoin at $27,000
The digital currency Bitcoin was last listed just under 27,000 US dollars – and thus around 1 percent lower than 24 hours ago. 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 are increasing
Oil prices were modestly higher in early trade on Friday. In the morning, a barrel (159 liters) of North Sea Brent for delivery in July cost 76.49 US dollars. That was 63 cents more than the day before. The price of a barrel of American grade West Texas Intermediate (WTI) for June delivery rose by 54 cents to $72.40.
Oil prices were boosted by greater confidence in the US debt dispute. Statements by Republican House Majority Leader Kevin McCarthy point to the possibility of an agreement soon. If the statutory debt limit is not raised in a timely manner, there is a risk of payment defaults on the part of the USA, which can lead to serious economic problems.
The hesitant economic recovery in China has been weighing on the oil market for some time. There are also recession concerns in the United States. The major interest rate hikes by the US Federal Reserve to combat high inflation are the main reason for this.