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The "bulls" are back: After weeks of remaining in a narrow range, the Daxhas now surpassed the 16,000 point mark and is aiming for a new record high
Photo: Lisi Niesner / REUTERS
On Friday, the Dax will focus on the record high due to positive guidance from the United States. Traders and banks calculated the benchmark index on Friday from 0.3 percent higher to 16,210 points at the start of Xetra. This means that the German benchmark index is only a good 80 points or half a percent short of the record high of a good 16,290 points from autumn 2021. Traders justified the positive mood on Friday morning with the hope of an end to the dispute over the debt ceiling in the United States.
On Thursday, the Dax had risen by 1.33 percent to 16,163 points in thin holiday trading due to hopes of a solution to the US debt dispute. The Dax closed above the 2022,16 point mark for the first time since the beginning of 000. Due to the Russian war of aggression on Ukraine and the turnaround in interest rates, the German benchmark index temporarily crashed to less than 12,000 points at the end of September last year before a rapid recovery began.
In the United States, the White House sees "steady progress" in negotiations to raise the debt ceiling. According to the US government headquarters, President Joe Biden was briefed on the status of negotiations by his team in Washington in Hiroshima, Japan. Biden is taking part in the summit of the seven leading democratic industrialized nations in Japan.
The Eurozone benchmark index EuroStoxx 50 is expected to rise moderately in the morning. Price-moving news on individual stocks is not in sight after "Ascension Day" and before the weekend. A new buy recommendation from Bank Jefferies for SGL Carbon shares caused the carbon manufacturer's shares to be invested by 1.5 percent on Tradegate.
Possible settlement in debt dispute drives Wall Street
Hopes of a mild end to the debt dispute supported Wall Street on Thursday. The Dow Jones closed 0.3 percent higher at 33,535 points. The technology-heavy Nasdaq 100 advanced 1.8 percent to 12,834 points. The broad-based S&P 500 gained 0.9 percent to 4198 points. President Joe Biden and leading Congressman Kevin McCarthy reaffirmed their determination to reach a swift agreement to raise the debt ceiling and prevent default. "There hasn't been much new at the moment, but negotiations are ongoing and the mood was better afterwards as all relevant players confirmed that they want to avoid default, which helped reassure market participants," Deutsche Bank strategists said.
Among the individual stocks, the shares of the network equipment manufacturer Cisco went on a roller coaster ride. After a weak start, it worked its way up 1.2 percent by the end. Cisco exceeded experts' revenue expectations. The network equipment supplier relied on improved supply chains in the third quarter, which allowed it to reduce its order backlog. Chinese retail giant Alibaba turned over less than expected in the quarter. New York-listed shares fell by more than five percent. U.S. retail giant Walmart pleased investors by raising its full-year forecasts. Shares rose 1.3 percent.
Bitcoin at $27,000
The digital currency Bitcoin was recently quoted just below 27,000 US dollars - around 1 percent lower than 24 hours ago. In November 2022, the currency had plummeted from over $21,000 to around $16,000 amid the collapse of crypto exchange FTX. A year earlier, Bitcoin reached a record high of $69,000.
Oil prices rise
Oil prices edged higher in early trading on Friday. In the morning, a barrel (159 liters) of North Sea Brent crude for delivery in July cost $76.49. That was 63 cents more than the day before. The price of a barrel of American West Texas Intermediate (WTI) crude for June delivery rose by 54 cents to $72.40.
Oil prices were boosted by greater confidence in the US debt dispute. Statements by Republican House Majority Leader Kevin McCarthy suggest the possibility of an agreement soon. If the legal debt limit is not raised in a timely manner, there is a risk of defaults on the part of the USA, which can lead to serious economic problems.
For some time now, the oil market has been weighed down by the sluggish economic recovery in China. In addition, there are recession concerns in the United States. The main reason for this is the sharp interest rate hikes by the US Federal Reserve to combat high inflation.
With news agencies