Weak start expected: Recession worries keep DAX under control


market report

Status: 06/23/2022 07:43 a.m

The Dax is likely to continue Wednesday’s weak phase and start the trading day with losses. Fear of a recession is forcing investors to be cautious.

The broker IG rated the DAX around 0.4 percent lower at 13,096 points an hour before the start of trading. Yesterday, after three friendly trading days, the leading German index had concerns about ongoing recession 1.1 percent lost to 13,144 points. “If the index sustainably breaks through the 13,000 point mark, a test of the low for the year at 12,438 points should be unavoidable,” forecast Helaba’s market observers.

Important economic data are coming up

stand in the morning the first estimates of the purchasing managers’ indices for June for Germany and the euro zone. They are of great importance, comments Dirk Steffen, head of capital market strategy at Deutsche Bank. “Because although values ​​above the expansion threshold of 50 points are expected for the euro zone and the USA, their momentum should continue to slow down.”

The expert believes that positive surprises in the June values ​​of the purchasing managers’ indices could at least partially restore confidence in economic growth.

Recession concerns also in Asia and the USA

The specifications of the US stock exchanges are weak, and investors there are also worried about an impending recession. The Dow Jones closed 0.2 percent lower at 30,483 points. The tech-heavy Nasdaq fell 0.2 percent to 11,053 points. The S&P 500 lost 0.1 percent to 3759 points.

At his semi-annual testimony before the US Congress, US Federal Reserve Chairman Jerome Powell committed to further rapid rate hikes in order to get inflation under control. At the same time, he tried to calm economic fears. “We’re not trying to provoke a recession and we probably won’t have to,” added the US Federal Reserve Chairman.

Nikkei hardly moved

In Asia, too, investors are therefore remaining relatively cautious. The Nikkei remained virtually unchanged over the course of the year at 26,147 points. The broader Topix index was unchanged at 1853 points. The Shanghai stock exchange was initially unaffected by recession concerns and was up 0.5 percent. The index of the most important companies in Shanghai and Shenzhen gained 0.4 percent.

Musk: Tesla factories in Grünheide and Texas are losing billions

According to CEO Elon Musk, the new Tesla factories in Grünheide and Texas are currently losing billions. The reason is a lack of batteries and supply chain problems due to the situation in the Chinese ports. In Texas, only a vanishingly small number of cars would roll off the assembly line at the moment.

There are difficulties in ramping up production of the new 4680 batteries, and the tooling to make the traditional 2170 batteries is “stuck in a port in China,” Musk said. The factory in Grünheide is in a “slightly better position” because the traditional 2170 batteries were installed from the start.

Microsoft: Ukraine’s allies targeted by Russian hackers

According to Microsoft, Russian hackers are attacking Ukraine’s western allies on a large scale. The software group warned that they were particularly targeting government computers in NATO countries. Target number one is the United States, but overall Microsoft’s experts have identified attacks by Russian hackers on 128 organizations in 42 countries outside of Ukraine. Since February 24, they have succeeded in penetrating the attacked networks in 29 percent of the attacks.

Shortage of parts: VW cuts working hours and wages in Brazil

Volkswagen is reducing working hours and wages at its plant in Brazil due to supply bottlenecks. The union has agreed to the German automaker’s proposal to cut working hours by 24 percent and wages by 12 percent from July to prevent closures, union official Wellington Damasceno said. The agreement will come into effect indefinitely from July 7, when workers are expected to return from a 10-day shutdown. The measure will be reviewed monthly and the end depends on the normalization of the supply of auto parts.

Netflix coming with ads soon

Shares in streaming provider Netflix rose in US trading yesterday. Retailers attribute this to a report in the “Wall Street Journal” that Comcast, NBCUniversal or Google could become Netflix partners with a new, advertising-supported subscription option at a reduced price. Netflix announced a loss of 200,000 subscribers for the first quarter. The group had predicted 2.5 million new customers.

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