DAX market overview on May 26, 2023: Approaching the debt ceiling debate

flatex: The German stock index ended trading on Xetra on Thursday with a price loss of 0.31 percent and 15,793.80 points.

The volume of business through Xetra was around 2.61 billion euros.

Other top European indices in London, Madrid, Milan, Paris and Zurich also retreated, while the AEX index in Amsterdam still managed to remain in the gain zone with an increase of 0.14 percent to 755.21 points.

The EuroStoxx50 gained slightly by 0.14 percent to 4,269.64 points.

Approaches to the Debt Limit Debate

Also on Thursday – and dogs greet each other every day – headlines related to the debate in Washington on the topic of “the amount of debt” were considered. Democrats and Republicans met on Thursday.

The negotiating teams even talked about reaching a settlement by Tuesday or Wednesday next week.

quarterly figures

At the same time, a number of quarterly statistics from organizations that published their quarterly statistics can also be checked. Among others, Best Buy, Burlington Stores, Dollar Tree, Medtronic, NetEase and Ralph Lauren posted their latest figures.

Only Ralph Lauren managed to surprise better in terms of earnings per share and sales and beat consensus estimates.

NetEase was very wrong – earnings per share were $2.32 and sales were $24.97 billion. Here analysts had predicted a profit of 8.68 US dollars and sales of 25 billion US dollars.

Germany’s Südzucker Group also reported current figures on Thursday. Südzucker was able to achieve strong annual figures – annual sales rose to around 9.5 billion euros, compared to 7.6 billion euros the previous year.

Net profit was 149.1 million euros, in the previous year it was 89.1 million euros.

The US economy is growing

Returning to the United States, because important economic data for the evaluation of the market was released there in the afternoon. One of these important data sets was the GDP for the first quarter of 2023 in the second edition.

The US economy grew by 1.3 percent compared to the previous quarter. In the context of the first publication, there was still talk of a 1.1 percent increase.

One can only dream of such growth stages in Germany. German GDP in the first quarter fell by 0.3 percent in the previous quarter, adjusted for prices, seasonal and calendar effects, as reported by the Federal Statistics Office (Destatis) on Thursday morning.

German GDP has already decreased by 0.5 percent in QIV/2022. With the downward trend now occurring twice in a row, Germany is by definition in a technical recession. “One should not praise the day before the evening” is a well-known saying.

In the United States, GDP may fall in the second quarter. The interest rate hike may not have any impact until the second quarter.

Nvidia carries the Nasdaq

On Wall Street, the leading US indices NASDAQ100 and S&P500 ended the trading day with price gains, while the Dow Jones fell slightly by 0.11 percent to close at 32,764.65 points. The NASDAQ100 rose by 2.46 percent to close at 13,938.53 points.

AMD shares rose 11.16 percent to $120.35, Cadence Design Systems was up 10.22 percent to $224.49, and Synopsys was up 9.82 percent to $434.20.

The report received support from Nvidia, which rose north of 24.37 percent to $379.80.

Asian and Pacific stock markets posted mixed results before each close.

US futures have been slightly lower since the Asian session.

The first signs of the DAX were 15,810 points in the morning.

chart method

The German stock index closed Thursday via Xetra with a price loss of 0.31 percent at 15,793.80 points.

Based on the price development from the March 20, 2023 interim low of 14,458.39 points used for analysis to the May 19, 2023 record high of 16,331.94 points, the next high and low targets can be provided more closely.

Resistance will be decided at the points of 15,890 and 16,332.

The next support areas can be identified at the low points of 15,616/15,395 and 15,174 points.