Surging inflation figures propel DAX to an all-time peak, with Bayer shares on the ascent
The DAX is Poppin' with Fresh US Inflation Data! Here's the Scoop and Why Bayer's Shares are Hotter Than Ever
Today, the DAX is on fire due to some sweet USA inflation data. Following a lift from US data and strong Q4 reports from American banks, the leading index is racking up significant gains, even hitting over 20,600 points! It's currently up 1.6 percent compared to yesterday, standing tall at 20,601 points.
Last time the DAX smashed a record was back in mid-December. But the record hunt continues as investors dive headfirst into the new trading year, despite a mix of trade, inflation, and interest rate concerns. So far this year, it's already grown by 3.5 percent, with a stronger year last year boasting around 19 percent.
In the USA, the rise in prices in December matched expectations, but the core inflation rate, excluding energy and food, was slightly lower. Helaba reports a boost in expectations for interest rate cuts, crediting to a significantly weaker New York regional manufacturing sentiment indicator.
UBS warns of continued volatility in the stock markets in the upcoming weeks and months due to either current economic signals or news about Donald Trump's policies, who will take office as US president on Monday. However, the trend remains encouraging for stocks, with the strength of the US economy acting as a handy supporter for corporate profits.
News from top New York investment banks on Wednesday backed up UBS's statement. This was especially true for JPMorgan, who reported a record profit in 2020.
DAX (WKN: 846900) ## Bayer shares soaring - BASF isn't far behind
Bayer's share is having a pretty great day in the DAX and leading the performance charts with a 5.9 percent gain. It's a bit ironic because dpa reports that Bayer has faced another legal defeat in the USA over alleged health effects of the banned chemical PCB. The pharmaceutical and agricultural chemicals company admitted that the jury in the Rose case ruled in favor of the company in 11 out of 15 lawsuits. However, the defeat is just one more roadblock in the company's ongoing fight against PCB disputes.
The jury assigned the remaining plaintiffs a total of $25 million in damages and $75 million in punitive damages. But the upcoming PCB appeal trial in February will be significant for the entire case. According to a preliminary assessment by Goldman Sachs, as reported by "finanzen.net", the current verdict is seen as slightly negative. However, the expected high legal costs are already factored into the share price. On the bright side, investors are excited about news that Bayer's BlueRock subsidiary will start a Phase III study for cell therapy against Parkinson's disease this year.
Sources: dpa-AFX, goldmansachs.com, finanzen.net
Other News Worth Reading:
Commerzbank breakout creates 33% chance (Reuters)
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- Amidst a rally in the DAX, fueled by US inflation data and strong Q4 reports from American banks, Bayer's shares are experiencing a 5.9 percent surge, taking the lead in the performance charts.
- Despite a legal defeat over alleged health effects of PCB in the USA, Bayer's share price remains robust, with investors optimistic about the company's Phase III study for cell therapy against Parkinson's disease, to be initiated this year by Bayer's BlueRock subsidiary.
