The Dax rose towards 16,000 points on Thursday. The leading German index managed to surpass the threshold after about an hour of trading. Most recently, he gave up some of his early gains and was still 0.6 percent higher at 15,983 points. For the end of August, however, a monthly loss of 2.8 percent is still emerging. The MDax went up 0.88 percent on Thursday to 27,763.74 points. The Eurozone barometer EuroStoxx was 0.4 percent higher.
Inflation rate of 6.1 percent
Possible interest rate signals could determine the further trend. After inflation data from Germany the day before had neither fueled nor alleviated interest rate worries, the acceleration in inflation in France on Thursday was slightly higher than experts had thought. Figures on current inflation in the euro zone are expected shortly. These are relevant for the next interest rate decision by the European Central Bank in September.
Property values continue recovery
On the corporate side, the news situation was calm. Property stocks led the way at a sector level, continuing their recent recovery. Investors are counting on the market situation improving again in times when interest rates may soon stop rising. Dax leaders were Vonovia shares with an increase of 2.8 percent, while Aroundtown shares continued their recovery rally from the previous day in the SDax. With an increase of more than five percent, they improved further from their highest level since March.
SAP benefits from Salesforce figures
SAP shares reacted cautiously to the results of a US competitor, the Walldorf-based company’s price in the morning was half a percent above the previous day’s level. Salesforce exceeded market expectations with its forecast for the current quarter. The shares of the Americans were traded over the counter about five percent higher.
US stock markets little changed
After a three-day recovery streak, buying sentiment in the US stock market eased on Wednesday. The leading index Dow Jones Industrial only saved an increase of 0.11 percent to 34,890.24 points. The market-wide S&P 500 gained 0.38 percent to 4514.87 points and the technology-heavy Nasdaq 100 index gained 0.56 percent to 15,462.43 points.
Weak domestic economic data once again proved to be a support for the course, fueling further hopes of an interest rate pause by the US Federal Reserve in September. According to employment services provider ADP, the US private sector created fewer jobs in August than expected. However, the increase in employment in the previous month was revised upwards.
Overall, the US labor market remains robust despite the Fed’s rate hikes. But there are also signs of a slowdown, such as the recent noticeable drop in the number of vacancies. The monthly labor market report, which is particularly important for US monetary policy, will be published this Friday. The fact that, according to a second estimate, the US economy grew less strongly than previously known in the past quarter also fueled hopes for interest rates.
Bitcoin hardly changed
Cryptocurrency Bitcoin held above the $27,000 mark. Cryptocurrencies were buoyed earlier this week by news that asset manager Grayscale Investments received support from a federal court to list the first Bitcoin ETF. A Washington appeals panel overturned a decision by the US Securities and Exchange Commission (SEC) to ban the ETF. According to observers, the decision is groundbreaking for the industry.
Oil prices recovered slightly
Oil prices rose moderately Tuesday through noon. A barrel (159 liters) of the North Sea Brent for delivery in October last cost 85.01 US dollars. That was 59 cents more than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade rose by 55 cents to $80.65.
The impulses for trade have been limited since the beginning of the week. Support comes from the relatively friendly mood on the financial markets. Support is also provided by the scarce supply of crude oil from major producing countries such as Saudi Arabia and Russia. Providers have been fighting what they consider to be low oil prices for a long time.
On the other hand, the weak economy in China, which is one of the largest oil consuming countries in the world, is a burden. The People’s Republic is suffering from a variety of economic and structural burdens, including the troubled real estate market. Some relief is provided by the fact that the political leadership is increasingly bracing itself against the economic weakness. More and more aid is being decided, but the extent of this is significantly lower than at the time of the global financial crisis in 2008.