The Rise and Fall of Germany's DAX: A Rollercoaster Ride
ku/kjo Frankfurt
Dax has re-emerged with new recorded music.
The thrilling ride on the DAX continues, baby! After a brief pause, this German powerhouse resumed its record-breaking rally, touching a staggering 20,522.82 points on Friday. But, as the saying goes, what goes up must come down—the market swung back, resulting in a 0.1% loss, settling at 20,406 points. This rollercoaster ride follows the DAX's record high, set just a few days ago. This exhilarating performance is primarily driven by anticipation for the Federal Reserve to announce another interest rate cut in the coming week, piggybacking on the European Central Bank's recent move.
Munich Re: King of the Hill
Munich Re held its ground like a boss in the DAX, with its shares reaching an all-time high of 519.80 euros. This insurance juggernaut has dished out its divide-and-conquer strategy for the upcoming year, predicting a mighty net profit of 6 billion euros—a massive leap from the over 5 billion it's expected to bank this year. They've also set their sights on amping up their capital investment return to over 3%.
TeamViewer: A Slip-up or a Tripping Point?
On the flip side, TeamViewer shares wobbled, sliding down as much as 9% at one point. Market analysts at Berenberg have thrown in the towel on their buy recommendation, citing concerns over the planned acquisition of software company 1E. Although they recognize the strategic sense behind this move, they're sounding the alarm over potential overspending.
Cewe: A New Photo Contender
Shares in photo service provider Cewe rose like a phoenix, surging as much as 3% at one point. Market analysts at Oddo BHF have given this stock a thumbs-up, with a "buy" rating and a price target of 145 euros. It's safe to say they fancy Cewe's chances in the competitive photo service market.
China's Bond Market: Bond-ing Over a Record Low
Over in China, the government bond market is stirring up excitement with a record-low yield of 1.77% on the 10-year Chinese government bond. This widened the spread against its U.S. counterpart to over 250 basis points—the widest since 1999. This bond-astic performance is linked to weakness in China's economy, which experts predict will call for further fiscal measures from the government and monetary support from the central bank in 2025.
Forex: The Euro's Touchdown and the Dollar's Comeback
By the end of the day, the euro edged up by 0.2% to 1.0484 dollars, marking the dollar's best week in a month. The almighty dollar gained around 1% against the dollar index compared to the previous Friday. Against the Japanese yen, the dollar rose to 153.66 yen—its highest level since November.
Bitcoin: Making a Coin-tact
Bitcoin stayed strong, trading at 99,965 dollars on Friday, inching up by 0.1%.
Brent Crude: Crude Expectations
The price of Brent Crude climbed by 0.9% to 74.08 dollars per barrel. The outgoing U.S. administration is strategizing over imposing new, far-reaching sanctions against Russia and Iran that could also cause a dent in the oil exports of both countries. If clients are unable to cough up the dough for oil deliveries due to sanctions, the effective oil supply on the global market could take a hit.
The drama continues on the financial front lines, folks! Stay tuned for more headline-making action as the market continues to dance to its own beat.
- Amid the upheavals in the DAX, Munich Re exhibited a robust performance, reaching an all-time high of 519.80 euros, with forecasts of a 6 billion euro net profit for the upcoming year versus over 5 billion anticipated this year.
- In stark contrast, TeamViewer shares experienced a dip, sliding as much as 9%, leading market analysts to reconsider their buy recommendation due to concerns about potential overspending in their planned acquisition.
- Reinforcing its presence in the market, Cewe shares surged by up to 3%, earning a 'buy' rating from Oddo BHF analysts who anticipate the company's success in the competitive photo service market.
- China's bond market made waves with a record-low 1.77% yield on the 10-year Chinese government bond, suggesting potential calls for further fiscal measures and monetary support in 2025.
- Meanwhile, the forex market showed a dramatic shift, with the euro edging up to 1.0484 dollars by the end of the day, marking the dollar's best week in a month, and the dollar reaching its highest level against the Japanese yen since November.
