The US government shutdown continues. Zohran Mamdani was elected as the new mayor of New York. There was positive news for German industry: production rose by 1.43 percent in September compared to the previous month. There is also reason for relief for German car manufacturers, as the situation surrounding the export restrictions for Nexperia chips is easing. Further news came from Palantir, Hochtief and Tesla.
Negative week for the DAX® and the major US indices
Weak week for the DAX® and the US stock exchanges: On Friday morning, the DAX® was around 1 percent below the previous week’s close. In the USA, the indices also recorded losses on Thursday evening compared to the previous week’s closing price: The S&P 500® fell by around 1.75 percent, the Nas-daq-100 Index® even fell by almost 3 percent and the Dow Jones® closed around 1 percent lower than in the previous week.
What happened on a political level?
The US shutdown continues and is costing the economy billions every week because Republicans and Democrats cannot agree on the budget, especially on cuts to the health care system. Meanwhile, there was a political change in New York: Zohran Mamdani was elected as the new mayor. The economy is also making headlines in Germany: Chancellor Merz sees the steel industry in a “crisis that threatens its existence” and is calling for more protection from the EU.
What was important on an economic level?
In September, German companies in industry, construction and energy produced 1.3 percent more than in the previous month, mainly thanks to the strong automotive sector. In the USA, the number of employees in the private sector rose by 42,000 in October, as the service provider ADP reports. However, due to the government shutdown, official figures are missing. Meanwhile, the Bank of England left its key interest rate at 4.00 percent on Thursday.
What was important company news?
After weeks of uncertainty due to a lack of Nexperia chips, the situation for Volkswagen is easing as China wants to allow the export of certain semiconductors again. According to Volkswagen, production should also be secured for next week. In addition to Volkswagen, BMW and Mercedes also recorded price gains this week.
Palantir released its quarterly figures after-hours on Monday and raised its full-year outlook to revenue of $4.4 billion. Nevertheless, the share reacted negatively and lost around 3 percent. The negative trend could not be stopped over the course of the week.
Hochtief, Germany’s largest construction group, is raising its profit target for 2025. The operating group profit should now be around 750 to 780 million euros, which is 20 to 25 percent more than in the previous year. The reason is the strong profit development of the US subsidiary Turner.
Elon Musk has been given the chance to win the largest compensation package in history. 75 percent of Tesla shareholders voted to give him a block of shares worth around $1 trillion, assuming he manages to increase Tesla’s market capitalization sixfold over the next ten years.
That’s it for the weekly review. In addition to interesting news about the capital market, are you also interested in technical analysis? Then take a look at our Instagram channel. We regularly publish issues of “Jörgs Chartschule” there.
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Source: HSBC