An the stock market, the reversal is gaining ground in what has been a poor stock market year so far. For the sixth week in a row, the FAZ share index went up. Many analysts give good reasons why the upswing will not last. But the rising prices speak a different language. What seemed like a weak footing on shaky ground at the end of September turned out to be extremely stable ground for the bulls. There is now much to suggest that the Dax has marked its low for the year at 11,975 points. On Friday, that index climbed to 14,260 points, a whopping six-week plus of 19 percent. The Dax closed on Friday at 14,235 points, a daily plus of 0.6 percent and a weekly plus of six percent.
The rapid rally is led by stocks that had previously fallen particularly low: the fashion retailer Zalando, for example, which has to fight for its place in the Dax, the food delivery service Delivery Hero, which has already lost its, as well as the industrial group Thyssenkrupp, from the next investor We’ll find out this week whether it might pay dividends again. Siemens’ fiscal year also ended on September 30th. Next Thursday, the board of directors will probably report on increased purchase prices, which can only be partially passed on. As a result, many observers are warning that many companies are still trimming their 2023 earnings forecasts amid high inflation and a likely recession.
But positive news is getting caught on the stock market again: the gas storage facilities are full, China is relaxing its Covid rules. And the inflation rate in the US has fallen for the fourth time. For this reason, the US Federal Reserve could only increase its key interest rate by 0.5 percentage points in December to combat inflation and thus not put too much strain on the economy. The Dax reacted to the US inflation rate with a massive increase of three percent in less than ten minutes.
Apparently, many investors on the futures market had bet on prices falling again after five weeks of upswing. Caught flat-footed, they now have to buy shares quickly to meet their delivery commitments, driving prices higher. Only companies such as Deutsche Telekom and Commerzbank, whose shares are among the few winners this year, triggered price losses with their slightly higher dividend and earnings outlook. Investors had expected even more aggressive forecasts from them. On the other hand, especially in the case of companies that had previously fallen too far, the bulls, who were so tired up to now, now switch from the sprinting trot to a full gallop. If it works, then it works.