Market report: DAX on course for 16,000 points

After the most recent records, there is a lack of impetus for further price gains on the German stock market. The DAX is moving further away from its record high and is targeting the round mark at 16,000 points again.

After the weak start to the week, the German stock market continues to go down. The DAX extended its initial price losses in the course of the morning, going down to 16,069 points. Negative US futures and bad news from the German chemical industry prevent a buying mood in Frankfurt trading. The day before, the DAX already lost 1.0 percentafter he was still at the end of the week had marked a new all-time high at 16,427 places.

After the DAX soared last week, the respite at the start of the week was necessary and healthy, states portfolio manager Thomas Altmann from asset manager QC Partners. “But now it has to be seen where the journey for the DAX is going. As long as the 16 is in front, the mood on the floor should remain good.

All in all, the technical picture for the leading German index is still positive, as the experts at Helaba also state. An important support zone for the DAX runs at 15,600/15,700 points. As long as the German stock market barometer stays above this, the upward trend is intact.

Positive news for the German stock market came from the Federal Statistical Office in the morning: In Germany, the upward trend in prices at the manufacturer level continued to weaken. In May, producer prices rose 1.0 percent year-on-year, the lowest increase since January 2021.

Producer prices are an important indicator for the trend in consumer prices, which in turn have a significant impact on the monetary policy course of the European Central Bank (ECB).

It will be exciting in the afternoon when the world’s leading stock exchange in New York intervenes again in the stock market and sets the direction. After the long weekend – the US stock exchanges were closed at the beginning of the week due to the Juneteenth holiday – the major indices in the USA are expected to be somewhat lower. Futures on the Dow Jones and S&P 500 are down 0.4 percent on the hour, while futures on the tech-heavy Nasdaq are down 0.5 percent.

The euro has shelved its initial phase of weakness and turned positive. Currently, 1.0929 dollars are paid for one euro on the foreign exchange market. The European common currency is thus staying above the 1.09 dollar mark, which it was able to regain last week in the course of the central bank decisions by the ECB and the Fed. A troy ounce of gold costs just under 1952 dollars at noon.

Oil prices rise significantly at lunchtime. A barrel (159 liters) of North Sea Brent for delivery in August currently costs $76.77. That’s 0.9 percent more than the day before.

After yesterday’s profit warning from Sartorius, Lanxess is causing the next mood dampener on the German stock market. After a second quarter that was weaker than expected, the specialty chemicals group is lowering its annual target for adjusted operating earnings (Ebitda).

The Lanxess shares listed in the MDAX of medium-sized companies collapsed by around 16 percent at lunchtime – and are thus lower than they have been since the outbreak of the corona pandemic in March 2020. The papers of industry colleagues such as Wacker Chemie, Evonik, Covestro and BASF are also affected.

The US financial investor Silver Lake has cleared the way to take over Software AG. The competitor Bain Capital, which had promised a higher offer for the Darmstadt-based company via the American Rocket Software and had driven Silver Lake into the parade, gave up its ambitions on Monday evening.

The world’s largest aircraft manufacturer Airbus has landed an order from the Philippines. The airline Philippine Airlines has ordered nine wide-bodied jets in the long version A350-1000, as both sides announced today at the world’s largest air show in Le Bourget near Paris. The day before, the Indian low-cost airline Indigo had ordered 500 Airbus jets in one go – giving the European aircraft manufacturer the largest aircraft order in aviation history.

Chemicals trader Brenntag has strengthened its position in China through the acquisition of Shanghai Saifu Chemical Development (Saifu). Saifu was founded in 2005. The company achieved sales of 71 million euros in 2022 and sells ingredients and chemicals for personal care products, coatings and cleaning agents, among other things. Brenntag did not provide any information on the purchase price.

MTU and Safran are working together on an engine for military helicopters. The two companies have agreed in principle to set up a corresponding joint venture. The aim is to quickly and efficiently develop a new engine for the European Next Generation Rotorcraft Technologies (ENGRT) project.

The Deutsche Post DHL Group is renamed. The global group will be called the DHL Group in the future, as the Bonn-based company announced yesterday. The “Deutsche Post” part of the name will therefore be omitted on July 1st. Already, 90 percent of the Group’s sales came from businesses under the DHL brand, including the parcel business in Germany.

The CFO of the Linux specialist Suse, Andy Myers, will resign at the end of the month. Until a successor is found, Jonathan Atack is scheduled to take over his duties on July 1st. He has reported to Myers as vice president of finance and investor relations for the past two years, the company said. The search for a CFO is in full swing.

The Sanofi share is in demand on the Paris Stock Exchange. The announcement by the French pharmaceutical company that an arbitration tribunal had dismissed Boehringer Ingelheim’s claim for compensation from Sanofi in cancer claims in connection with the drug Zantac in the USA gives cause for optimism. Credit Suisse analysts rate the news as “very positive”.

The car manufacturer Stellantis and the electronics contract manufacturer Foxconn want to jointly develop and sell semiconductors for the automotive industry. The two companies have set up a joint venture for this purpose, in which they each hold half the shares. The company, called SiliconAuto, is scheduled to start operations in 2026.

Chinese Amazon rival Alibaba is getting a new CEO. Eddie Yongming Wu, head of Alibaba commerce platforms Taobao and TMall, will succeed Daniel Zhang in the Chinese e-commerce giant’s biggest leadership reshuffle since its reorganization, Alibaba said. Zhang will lead the cloud unit, which is considered an IPO candidate.

UBS could face hundreds of millions of dollars in fines over Credit Suisse’s failures in the Archegos case. Regulators from the US, UK and Switzerland have completed their investigations into the collapse of the hedge fund, the Financial Times said, citing people familiar with the matter. The US Federal Reserve could impose a fine of up to 300 million US dollars.