German Manager Magazine: Stock market: Dax falls below 17,900 points003475

The Dax will give up in the morning due to very weak specifications USA and Asia fell significantly due to recession concerns and disappointing quarterly balance sheets from the US technology sector. At the start, the most important German stock market barometer fell to just over 17,900 points. The weak start to the month of August would therefore continue. The day before, the Dax ended trading at 18,083 points and recorded its biggest loss in a year.

Technically, the Dax now appears to be in trouble – a weekly close below 18,000 points would underline this impression. The Eurozone leading index EuroStoxx 50 also got off to a weak start on Friday with minus 0.8 percent.

Evidence of a possible key interest rate cut by the US Federal Reserve in September had not boosted the indices the previous day. After very weak economic data, concerns about a slowdown in the economy had increased. Against this background, the publication of the US labor market report for July will be exciting in the afternoon.

The negative guidelines on the German stock market primarily affect tech stocks and especially semiconductor stocks. Infineon, for example, slipped by more than 3 percent at the Xetra close in pre-market trading on Tradegate.

Shares of companies that are particularly sensitive to fluctuations in the economy also fell under the wheels. The titles of the food delivery company Delivery Hero and the real estate giant Vonovia lost between one and a half and a good 5 percent. The latest weak economic data from Europe, China and the USA are currently causing new fears of recession.

Tui shares have come under particularly strong pressure. Most recently, the securities now listed in the MDax fell 4.6 percent lower. The main reason for the losses is likely to be a negative analyst assessment. The British investment bank Barclays rated the securities as “underweight”. Analyst James Rowland Clark is optimistic for the travel group in the short term, also because of the bankruptcy of its German competitor FTI. However, he favors the British Jet2 due to operational strength, market share growth in Great Britain and positive balance sheet.

Wall Street: Nasdaq at 17,200 points

The US stock exchanges were unable to maintain their initial gains on Thursday. Investors’ disappointment after the latest economic data overshadowed the joy over the strong quarterly figures from Facebook parent Meta. The Dow Jones lost 1.2 percent to 40,347 points. The broader S&P 500 lost 1.4 percent to 5,446 points. The Nasdaq technology exchange index fell 2.3 percent to 17,194 positions.

“The entire market is being influenced by the weak report on US manufacturing,” said Robert Pavlik, portfolio manager at asset manager Dakota Wealth. “The numbers show investors that the economy may be in worse shape than previously thought.” US manufacturing purchasing managers’ index fell to 46.8 points in July from 48.5 points in June. Economists polled by Reuters had expected the ISM barometer to rise to 48.8.

Oil prices are rising slightly

Oil prices continued to rise slightly on Friday in view of the worsening situation in the Middle East. A barrel (159 liters) of North Sea Brent for delivery in October cost 80.10 US dollars. That was 58 cents more than the day before. The price for a barrel of the US variety West Texas Intermediate (WTI) for delivery in September rose by 60 cents to around $77.

Oil prices continued their significant gains from the previous day. Tensions have risen in the Middle East following the targeted killing of a senior leader of the Islamist Hamas in Tehran. According to Hamas, its foreign chief, Ismail Haniya, was killed in an Israeli attack. Iran and Hamas threaten Israel with retaliation. Iran also wants to support Hamas even more.

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