After yesterday’s record high, the German stock market may start more slowly today. According to initial indications, the DAX opens 0.1 percent lower. Market participants are particularly focused on news about the Iran conflict: the vague hints of a possible understanding between the warring parties, which had helped the DAX to its recent surge, have not yet been confirmed.
Oil prices rose again overnight: Brent crude costs $89.69 per barrel in the morning, 0.9 percent more than yesterday. US markets closed slightly lower yesterday, with the Dow Jones and Nasdaq 100 each losing 0.3 percent. In Asia, markets are mixed, with South Korea and Japan gaining while the Hang Seng in Hong Kong is under pressure.
The US inflation data is the most important economic event of the day. Observers expect a slight cooling of inflation to 3.4 percent, which is still well above the US Federal Reserve’s (Fed) two percent target. Expectations on whether the Fed will raise interest rates in September are nearly balanced: on one hand, the labor market is weakening; on the other, the Iran conflict is driving up oil prices and thus inflation.
In Germany, several companies release quarterly figures today, including TUI, Eon, Hannover Re, and K+S. Eon invested three billion euros in energy infrastructure and digitalization in the first half of the year, seven percent less than the previous year. TUI reported a 27 percent decline in adjusted operating profit to 234 million euros in the third quarter, while analysts had expected 275 million euros.
Source: Tagesschau
