The accounting season starts in the new trading week. Experts say investors should brace themselves for disappointment. Analysts’ profit expectations do not reflect the gloomy economic prospects, warns investment strategist Harald Brandl from VP Bank. “Both consumer and producer prices grew at rates that have not been observed for four decades. Depending on the purchasing and hedging strategy, this affects companies very differently in terms of timing and scope.”
Saying goodbye to the era of cheap money after more than a decade is making the prospects even more gloomy, interjects Stephen Innes, managing director at asset manager SPI. “It’s time to get used to the idea of being uncomfortable.” Because the US Federal Reserve did not allow itself to be dissuaded from raising interest rates due to the fall in prices on the stock exchanges. “But on the contrary.”
In addition to getting used to the crisis mode, the seasonality provides a glimmer of hope, says analyst Timo Emden from Emden Research. Therefore, a strong recovery cannot be ruled out. With an average increase of 6.6 percent, the fourth quarter is statistically the strongest on the German stock market. In the old week, the DAX gained more than two percent, but closed on Friday in the red: the leading German stock market index almost lost 200 points or 1.6 percent to 12,273 points. The DAX is currently being priced lower again by 12,215 places.
At the start of the new week, things are relatively calm on both the economic and corporate side: Investors should keep an eye on the Sentix economic index for Germany, which will be published in the morning. In addition, the winner of the Nobel Prize in Economics will be announced at noon. On the corporate side, OMV is providing a trading update.