The stock market day
DAX tests down
7/17/2023, 5:39 p.m
To the DAX there are no positive price impulses at the start of the week. The leading German stock exchange index is down 0.2 percent and 16,069 points from trading. In the course of time it even slips below the 16,000 mark. Wall Street is also lacking momentum at first. The main stress factor in this country: fresh economic data from China: economic output there grew by 6.3 percent in the second quarter, but this is well below the forecast of 6.9 percent. According to JP Morgan, the GDP data underscores the urgency of supporting the economy.
The good impression is deceptive here, says chief economist Thomas Gitzel from VP Bank. Because in the same quarter of the previous year, GDP shrank compared to the previous quarter due to corona restrictions and the stumbling real estate sector. The basis of comparison was correspondingly low, so that it didn’t take much for high growth. “And that’s exactly where the real message lies: the post-corona recovery has hardly begun when it seems to be drawing to a close,” warns Gitzel. Hopes for state aid could be disappointed: “The Chinese government hasn’t unpacked the bazooka for a long time.” This was last the case after the financial market crisis in 2008. It is therefore likely that the government will promote targeted programs in the field of renewable energies or for the purchase of electric cars.
“The DAX is struggling with the psychologically important 16,000 point mark,” commented ntv stock exchange correspondent Nancy Lanzendörfer. “Good news from the Bundesbank saying that the recession in this country is over is not enough for investors,” she explains. “The unexpectedly weak GDP data from China weighed too heavily. In addition, the DAX looks back on a gain of more than three percent last week.”
On the stock market, luxury companies dependent on Chinese buyers are coming under pressure. The luxury brands LVMH and Hermes in Paris as well Moncler in Milan they lose up to more than four percent. Also a drop in prices of around ten percent to a three-and-a-half-month low for the Swiss industry heavyweight Richemont spoils the mood. It is true that sales of jewellery, expensive watches and luxury fashion in Asia, the region with the strongest sales, surged upwards. However, the upswing was slowed down by continued subdued demand on the American continent, so that the group’s figures fell short of expectations.