market report
Buoyed by hopes of new interest rates, investors in New York bought shares today. Wall Street continued its trend at the weekend. DAX also benefits from this development.
The US stock market started the new week with significant gains. Technology shares are particularly in demand after hopes of interest rates rising again recently. Technology stocks continued their good closing trend today from Friday. Pharmaceutical stocks were also in focus and the majority rose.
The Dow Jones, the leading standard stock index, rose 0.44 percent to 46,448 points. The overall S&P 500 index rose 1.55 percent and the Nasdaq posted a strong gain of 2.69 percent. The Nasdaq selection index also rose 2.61 percent. Alphabet A and C shares hit new all-time highs today.
Interest rate expectations recently rose on the world’s leading stock exchange following similar statements from central bankers, which immediately took the stock exchange to a temporary high. However, a continued downward trend in interest rates is not a sure thing for the US Federal Reserve (Fed). Especially since the latest US labor market report reduced expectations of further rate cuts in December and the central bank had to make decisions based on outdated data. “The prevailing theme at the moment is uncertainty,” said Lilian Chovin of British private bank Coutts.
Growing doubts about the sustainability of the AI boom also remain a factor of uncertainty in the stock market – even if the leading company, Nvidia, has recently lived up to high market expectations. There are also doubts about whether investments in artificial intelligence (AI), some of which are financed by debt, will be profitable in the long term. With the hope of new interest rates, investors have now put these worries behind them.
With friendly Wall Street support, DAX managed to bounce back at the start of the new stock market week. The index followed Wall Street’s recovery on Friday, which European markets could no longer replicate as it only started in New York in the second half of the session – that is, after the stock market closed.
It was hopes of new interest rates that drove the US stock market, a trend that continues today. Trends on Wall Street will also likely remain a major pacesetter for the domestic stock market.
In the end, Germany’s main index strengthened 0.64 percent and reached 23,239 points, fluctuating between 23,149 and 23,392 points. That means the index is at least stable after losing around 1,500 points at its peak in recent days. MDAX, which includes mid-sized stocks, also rose 1.26 percent to 28,618 points.
Headwinds in the country come – once again – from the domestic economy, this time in the form of the ifo index. The mood among German company executives has surprisingly soured again, dampening hopes of a rapid economic turnaround.
The ifo business climate index fell 0.3 points to 88.1 points in November, as announced by the Munich ifo Institute in its monthly survey of around 9,000 managers. But economists expected a small increase to 88.5 points. “It is doubtful that the German economy will recover quickly,” said Ifo President Clemens Fuest.
Among the individual stocks on the DAX, Bayer shares ended around eleven percent higher and therefore confidently topped the index – which provides an unusual feeling of happiness for shareholders.
This, following positive study data of the anticoagulant Asundexian in the prevention of patients with previous strokes, puts the drug on track for a blockbuster with potential sales of more than a billion euros, according to JPMorgan’s Richard Vosser. James Quigley of Goldman Sachs estimates the global market potential for Asundexian at three billion euros.
Rheinmetall is at the bottom of the DAX. The stock reacted to heightened diplomatic activity to end the war in Ukraine.
