Status: 02/25/2022 07:58 a.m
After the great Ukraine shock of the day before, there are signs of a countermovement. Good Wall Street conditions support the DAX. The weekly balance is so far deep red.
Buoyed by a recovered Wall Street, the DAX is pointing towards a recovery towards 14,300 points. The Xetra close yesterday was 14,052 points. In view of the ongoing hostilities in Ukraine, however, the situation remains shaky. Stockbrokers are wondering how things will continue after the shock of the Russian invasion of Ukraine. Experts anticipate sustained high price swings.
In addition to the all-dominant topic of war in Eastern Europe, the stock exchange expects further data from the corporate sector, including from DAX member BASF. However, like yesterday, these are likely to take a back seat.
In the course of the week so far, the DAX has lost over 6.5 percent. Even a recovery today can probably do nothing to change the deep red balance sheet. With the friendly pre-market in the back, there is currently a minus of a good five percent.
Wall Street is turning positive
After a weak start, Wall Street turned positive yesterday, bucking the global downtrend. The leading index Dow Jones initially fell again significantly to almost 32,273 points and thus to its lowest level since March 2021, but then it was able to more than make up for the losses.
The Dow then ended trading 0.28 percent higher at 33,223 points. He ended a series of five days of losses in a row. The Nasdaq technology exchange was particularly strong, rising by more than 3.3 percent to 13,473 points.
Filming began after the US government announced new sanctions against Russia. US President Joe Biden has sharply criticized Russian President Vladimir Putin and announced another package of sanctions against Russia. “As unpredictable as the political escalation and situation is, the conceivable effects on the global economy are now tangible,” said Thomas Boeckelmann from the Euroswitch wealth management company.
Some investors also speculated that the Ukraine war could delay the monetary tightening course of the central banks again. The US Federal Reserve (Fed) is expected to raise interest rates for the first time in March.
Asia largely recovered
Good indications are also coming from Asia, where prices are also picking up in a countermovement. The Nikkei index in Tokyo has almost completely made up for the previous day’s losses and gained 1.86 percent to 26,453 points. Even in China, where there is still trading, things are going up. In Hong Kong, however, things are slightly downhill, and Australia only recovered slightly.
Oil prices remain high
The raw materials markets are particularly exciting at the moment. After all, Russia is one of the largest oil and gas suppliers in the world and also exports other important raw materials.
Aluminum, which is used primarily in the auto and aircraft industries, cost as much as $3,449 a ton yesterday. The price of tin used in food cans, of which Russia is one of the top exporters, also climbed to a record $45,410 a ton. Yesterday, the price of oil climbed above the $100 mark for the first time since 2014. In early trading, the quotes are just above that.
euro catches itself
On the currency market, the euro is trading at 1.1222 dollars in the early morning and is thus stabilizing at a low level. The common currency fell below $1.12 yesterday. Among other things, the market is expecting the second Q4 GDP estimate for Germany today, sentiment data from the EU and a whole series of data from the USA in the afternoon.
Billions in profit for BASF
After making billions in profits last year, the world’s largest chemical group, BASF, wants to pay out a little more money to shareholders. The Executive Board plans to increase the dividend to EUR 3.40 per share, after EUR 3.30 in the previous year. Experts had expected about as much on average.
In 2021, the profits of the DAX group attributable to the shareholders amounted to 5.5 billion euros. In the first Corona year, BASF reported a loss of a good one billion euros due to billions in write-downs. Day-to-day business was also much better for BASF thanks to good demand and higher prices. The company also benefited from its austerity measures. Earnings before interest and taxes (EBIT), adjusted for special effects, more than doubled in 2021 to EUR 7.77 billion. Sales climbed by a third to 78.6 billion euros.
VW pushes Porsche IPO
In the evening, VW announced details for the possible partial IPO of its sports car subsidiary Porsche. The Wolfsburg car group and its main owner Porsche SE signed a key agreement. On this basis, it should be checked whether a placement is possible, both companies announced. Whether this actually happens depends on a variety of factors and the stock market environment. The agreement stipulates that the share capital of Porsche AG will be split equally between preference shares and ordinary shares. Up to 25 percent of the preferences are to be placed on the capital market.
Porsche SE, through which the Porsche and Piech families hold a majority stake in Volkswagen, will subscribe to 25 percent plus one share of the ordinary shares. The holding company is to purchase the shares at the price of preferred shares plus a premium of 7.5 percent. The Emirate of Qatar, which holds a 14.6 percent stake in VW, also wants to acquire a stake in the preferred shares of Porsche AG. The voting ordinary shares are not to be listed on the stock exchange.