13 November 2023 – Chinese steel mills were able to expand production after a significant increase in profits. However, strict environmental regulations are unlikely to allow for much production expansion. Chinese exports, particularly to the EU and the Middle East, rise by more than 5%. And US investors are fuelling the US share indices.
Chinese steel mills improve profits, exports rise
Chinese EF steel mills for structural steels have increased their production in recent weeks after they were able to significantly improve their profits. However, the capacity expansion of Chinese steel manufacturers is likely to be limited, as the relevant authorities have limited production volumes in many regions due to environmental regulations.
China’s weekly export container shipping index grows
There is also positive news from the Chinese export industry. The Chinese export container shipping index has continued to grow in recent weeks. In particular, exports to the European Union (+5.4%), South Africa (+3.8%), West-East Africa (+4%) and the Middle East (+6.1%) increased.
US investors shake off interest rate worries
Positive signals for stock trading came from Wall Street on Friday. Investors there had shaken off their interest rate fears and bought shares again in anticipation of a continued strong reporting season. The Dow Jones index of blue chips closed 1.2 per cent higher. The technology-heavy Nasdaq advanced 2.1 per cent. And the broad-based S&P 500 gained 1.6 per cent.
Is the DAX catching its breath before the next rally?
After the price losses before the weekend, the DAX is stable and up in the morning. From a seasonal and technical perspective, analysts believe that the chances of the November rally continuing soon are good.
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