Week Review 23.03.24

The German stock market, represented by the DAX, showed cautiousness at the beginning of the week, not able to maintain its recent record-breaking momentum. Investors are eagerly awaiting the upcoming Federal Reserve meeting. Meanwhile, specific companies like Rheinmetall and Airbus saw noteworthy movements.

1. Cautious Start on DAX: The DAX started the week tentatively, attempting a brief upward move but ultimately ending almost unchanged at 17,933 points. The EUROSTOXX50 also experienced a slight decline.

2. Focus on Fed Meeting: Investors are closely watching the Federal Reserve's meeting, particularly for insights into inflation and interest rate policies. Speculation surrounds the possibility of interest rate cuts, impacting market sentiment.

3. Company Highlights: Rheinmetall saw a significant increase following positive analyst outlooks. Airbus reached a new all-time high, benefiting from Boeing's issues.

4. Pre-Fed Market Sentiment: The day before the Fed's decision, the DAX remained below the 18,000 mark, reflecting uncertainty among investors. Market professionals are optimistic about Germany's economic prospects amidst potential changes in ECB policies.

5. Company Performances: Siemens and Fraport faced challenges, with Siemens particularly struggling due to economic conditions in China and Europe. Conversely, companies like Hannover Rück and BASF experienced gains.

6. DAX Sets New High: Speculation about falling interest rates buoyed the DAX to a new all-time high, although concerns about market overheating linger. Specific companies like Siemens Energy and Heidelberg Materials saw notable increases.

7. Continued Market Momentum: The German stock market remained strong towards the end of the week, with the DAX reaching another all-time high, supported by positive economic indicators and investor optimism.

The Dow Jones experienced a slight decline at the end of the week following a record-setting week, closing nearly unchanged at 39,475 points, with the S&P 500 also dipping slightly. Despite this, both indices achieved weekly gains. The week was dominated by the Federal Reserve's monetary policy statements and robust US economic data.

1. Dow Jones Performance: The Dow Jones closed with a 0.77% decrease, almost hitting its daily low at 39,475 points. However, it managed to secure a weekly gain of approximately two percent. Meanwhile, the S&P 500 saw a 0.14% decline, and the Nasdaq 100 increased by 0.10%.

2. Fed's Monetary Policy Impact: The week revolved around the Federal Reserve's statements, hinting at a gradual shift in monetary policy. While recent data supported the Fed's approach, investors remained cautious.

3. Individual Stock Movements: Sportswear companies like Nike, Under Armour, and Lululemon faced challenges due to revenue outlook concerns, leading to significant declines in their stock prices. Conversely, FedEx reported positive quarterly earnings, driving its stock up by over seven percent. Tesla, however, experienced a slight drop due to reduced vehicle production in China.

4. Currency Market: The Euro depreciated against the US Dollar, reaching its lowest level since early March, influenced by market dynamics and the European Central Bank's policies.