Financial markets 2023

The financial markets can look back on a successful 2023. After the weak performance in 2022, the stock markets recorded strong gains in the reporting period. The UZIN UTZ share also got off to a successful start, reaching a high for the year of EUR 61.00 in January. The initial improvement in the economic climate in the construction industry created a positive mood in the sector. Overall, however, the development of inflation and a possible weakening of the economy were the dominant themes on the financial markets. Short-term uncertainty was fueled by the crisis at the US regional banks and the collapse of the major Swiss bank UBS in the spring.

The UZIN UTZ share remained largely unaffected by this, but trended weaker again after reaching its highs and fell back below the EUR 50.00 mark at times. The increasingly challenging economic conditions also left their mark on the company and caused a dip in earnings in the first quarter compared to the previous year. After the share price recovered to EUR 56.50 prior to the announcement of the figures at the beginning of May, significant profit-taking set in, which subsequently led to a fall in the share price to EUR 47.60. In the summer months, investors increasingly focused on the monetary policy of global central banks. Against the backdrop of the continuation of the interest rate hike cycle, yields rose rapidly. US Treasury bonds with a ten-year term climbed to their highest level since 2007 (5.0 %) by the fall, while their German counterparts reached a 12-year high of 3.0 %. The high level of interest rates offered an attractive alternative to equities and, coupled with the debt crisis in the USA, caused a period of weakness on the equity markets between August and October.

Not only the negative stock market trend, but also the regressive sales and earnings development of Uzin Utz SE in the second quarter led to a declining share price development. Despite its robustness, the company had to lower its sales growth target for 2023. In addition, geopolitical crises such as the war between Israel and the Palestinian Hamas in the Gaza Strip at the beginning of October had a brief negative impact. Gold turned out to be the beneficiary, with its price experiencing a renaissance in the wake of increased global conflicts and breaking a new record at USD 2,135.00. After falling to an annual low of EUR 39.40 on October 6, the UZIN UTZ share saw a trend reversal that led to a sustained recovery in the final quarter. Underpinned by a positive earnings trend in the third quarter, the share extended its gains until the beginning of December and climbed back up towards the EUR 50.00 mark to EUR 47.80. The brighter mood on the stock markets also contributed to the positive trend. The resurgence of interest rate cut fantasies led to unexpectedly euphoric investor sentiment in the last quarter and an impressive year-end rally on the stock markets. Over the year as a whole, this gave the stock market barometers strong gains of between 8 % for the MDAX and over 20 % for the DAX. On Wall Street, technology stocks soared, with gains of more than 43% on the Nasdaq Composite and over 23% on the S&P 500 Index. At EUR 44.60, the UZIN UTZ share finally managed a conciliatory end to the year. 

Start of the year and outlook for 2024

After the brilliant year-end rally in 2023, the stock markets consolidated at the start of the new year. Technology stocks in particular, which had risen rapidly in 2023, were initially on investors' sell lists. Growing geopolitical concerns contributed to the caution. Attacks by Houthi rebels on cargo ships in the Red Sea, accompanied by negative effects on supply chains, as well as rising freight rates and thus increased costs for companies, weighed on sentiment. In view of the fresh liquidity on the part of investors, however, a sharper correction failed to materialize. As January progressed, increasing economic optimism prevailed, underpinned by strong US labor market data. Supported by the ongoing interest rate cut fantasy in the USA, the stock markets continued their positive trend after the brief period of weakness and reached new highs. Despite rather weak economic data from Germany, the leading German index DAX also reached a new record high. However, a significant rise in yields on the bond markets initially put the brakes on a continuation of the positive stock market trend at the beginning of February.

UZIN UTZ share - start to the new year

The UZIN UTZ share had a pleasing start to the new stock market year 2024. The share price rose significantly right at the beginning and was thus able to recover from the recent lows. While the share price closed the year at EUR 44.60, it climbed to EUR 50.00 in the course of January, marking its highest level since the beginning of August 2023. The UZIN UTZ share was unable to benefit from the recent record run on the stock markets, losing its initial gains and falling back to EUR 45.00.

Outlook for the financial markets in 2024

The positive performance of the stock markets in 2023 has surprised many investors and is now causing many strategists to take a more cautious view of 2024. On average, financial institutions believe that the DAX, Germany's leading index, will rise by 3% to 17,167 points in 2024. The US Dow Jones Industrial Index could therefore gain 2 % and the technology-heavy Nasdaq Composite 9 %. Positive impulses from economic developments are hardly expected, but neither are any disruptive fires for the stock markets. The central banks' monetary policy will once again be a decisive factor. The end of the cycle of interest rate hikes and the interest rate cuts expected in the course of 2024 should provide further tailwind for equity and bond markets. Political uncertainty could arise from the upcoming US elections in the fall and geopolitical crises. However, further declining inflation rates coupled with stable growth rates should ultimately provide support.