market report
Status: 07/01/2022 07:37 a.m
The leading German index experienced the blackest June in its history. At the start of July, the DAX is now targeting its low for the year, and an imminent test seems almost inevitable.
The price losses in the DAX are likely to continue on the last trading day of the week. The broker IG estimates the 40 German standard values 0.8 percent lower at 12,674 points. Yesterday the low went down to 12,619 points. At the end of trading there was a minus of 1.7 percent to 12,784 points.
Blackest June in DAX history
The minus of the leading German index since the beginning of the month has added up to a good eleven percent. Never before has he lost so badly in a June. The DAX recently had a series of lower lows and is therefore in a downward trend.
Only a blink of an eye now separates the DAX from a test of its annual low of 12,439 points. The leading German index slipped to this low after the outbreak of the Ukraine war.
Nikkei starts July with losses
Investors worry about the global economic outlook. Quite a few fear that the central banks, in the fight against inflation, could stall the economic engine, which is already stuttering due to the strained supply chains, by raising interest rates too large and too quickly.
Asian equity markets got off to a rocky start to the second half of the year today. The Nikkei Index, which comprises 225 stocks, is 1.8 percent lower shortly before the close in Tokyo. The Shanghai stock exchange is down 0.4 percent.
Blackest half-year on Wall Street in decades
Wall Street comes with negative guidelines for DAX trading. The major US indices also continued their price losses yesterday. The leading US index Dow Jones lost 0.8 percent to 30,775 points. The tech-heavy Nasdaq fell 1.3 percent to 11,028 points and the broad-based S&P 500 fell 0.9 percent to 3,785 points.
This adds up to the minus of the S&P 500 in the past six months to 20.6 percent – the blackest half year since 1970. For the Dow Jones it was last downhill in 1962 with a minus of 15.3 percent in this period. The Nasdaq, whose history does not go back nearly as far as the other two indices, is a record minus of 29.5 percent.
Escape to the safe haven of the US dollar
The flight out of risky assets into safe investment havens has meanwhile also affected the foreign exchange markets. The US dollar has recently gained across the board. In return, the European common currency is under pressure. In the morning, one euro costs $1.0455. The day before, only 1.0383 dollars were paid for one euro at the low.
Gold just over $1800
Meanwhile, the rising dollar and the prospect of further significant rate hikes by the US Federal Reserve are keeping demand for gold in check. A troy ounce of the yellow precious metal costs 1802 dollars at the end of the week. Gold can only stay just above the important $1800 mark.
Siemens: Write-down of billions on Siemens Energy shares
Siemens Energy’s recent price losses have had a major impact on the major shareholder Siemens. A special write-down will burden earnings after taxes in the third fiscal quarter by the end of June by around 2.8 billion euros, Siemens surprisingly announced yesterday. The DAX group has a 35 percent stake in Siemens Energy.
Bargaining round for Lufthansa ground staff postponed
Against the background of major handling problems and staff shortages, collective bargaining for around 20,000 Lufthansa ground staff began yesterday. The negotiations in Frankfurt am Main have not yet brought any results, as the Verdi union announced in the evening. The second round of negotiations is scheduled for July 13, 2022 in Hamburg.
Jenoptik finally separates from its military technology division
The East German technology group Jenoptik is parting with its entire military technology division with around 700 employees. The sale, which was announced in November 2021, was perfect, Jenoptik AG announced yesterday. The division goes to a fund of the British financial investor Star Capital Partnership. Jenoptik wants to concentrate on its core business with optical components, lasers and industrial equipment.
FDA: BioNTech/Pfizer and Moderna to adapt vaccines
The US Food and Drug Administration (FDA) has asked the manufacturers of corona vaccines to also modify their Omicron-adapted vaccines with regard to the BA.4 and BA.5 sublines. It is hoped that these vaccines will then be ready for use as a booster in the fall. A few days ago, manufacturers presented positive clinical data on modified vaccines from their point of view – which, however, are adapted to the Omicron subline BA.1.