Weekly Outlook: "Companies defy difficult environment"

The quarterly figures are mostly well received - but this is partly due to previously lowered expectations. When prices fall, it is with low turnover.

14 August 2023 FRANKFURT (Frankfurt Stock Exchange). In view of the US inflation figures from Thursday, which are not to be interpreted clearly, the focus this week is again on the corporate figures for the second quarter. According to Jan Gengel of Weber Bank, the figures published so far show a slightly positive picture. "However, the hurdles for pleasant surprises have also been very low," notes the portfolio manager. U.S. companies have beaten earnings estimates about 80 percent of the time, he says. In Europe, too, results were slightly better than expected, although there were also many negative reports. However, the overall decline in profits had been largely priced in beforehand. "The partly more significant price declines are therefore rooted in another event - the rating downgrade of the U.S."

The DAX is at x points on Monday morning after 15,832 points at the close of trading on Friday.

Technical correction in the short term

"Companies have once again demonstrated that they are successfully defying the difficult environment," explains Ulrich Kater of DekaBank. After strong price increases, technical price corrections are now to be expected in the short term. However, the overall stable earnings outlook combined with only below-average valuations would effectively limit these. "Thus, especially in this phase, it is important to continuously expand exposures in the stock market." The bank sees the DAX at 17,000 points in six months and 17,500 points in twelve months.