market report
Status: 06/20/2022 07:42 a.m
After the price disaster of the previous week, the DAX definitely has a chance of turning upwards. But can the cops use them too? Experts remain skeptical.
The DAX is slightly under pressure at the beginning of the week. The broker IG appraised the 40 German standard values around one and a half hours before the XETRA opening 0.2 percent lower at 13,104 points. The leading German index dropped 4.6 percent last week; since the interim high on Whit Monday, the losses for the leading German index have even totaled almost 11 percent.
Can the DAX turn around?
At the beginning of the new week, the DAX definitely has a chance of a bottom reversal, i.e. a turn to the upside. Because Friday was the Big Expiration Day. On this day, investors on the futures exchanges closed their long and short positions.
As a result, a market shakeout took place, which can certainly form the basis for a change in trend. In the past, the market has often marked important preliminary highs or lows around expiration days, which were then decisive for many months.
Negative investor sentiment as a price driver?
A glimmer of hope for the markets is also the negative investor mood. “The most recent sentiment survey by the American Association of Individual Investors (AAII) shows an extremely high proportion of bears among US private investors of 58.3 percent. That is about twice as high as in historical average,” stressed HSBC’s technical analysts.
In the eyes of many market observers, such a high proportion of pessimistic investors is a counter-indicator and thus an indication of rising prices. Because most of these investors are likely to have sold by now; this increases the probability of a countermovement in the markets.
Interest rate and gas fears continue to weigh on the stock exchanges
But it remains to be seen how strong and, above all, how sustainable such a potential countermovement will be. In any case, the overall downward trend in the DAX is intact.
In addition, high inflation and rising interest rates are likely to remain the dominant themes in the new stock market week. The scenario of a supply stop for Russian gas is also becoming more and more likely. In this case, experts fear an immediate recession in Germany.
Fear of recession weighs on the Nikkei
At the start of the week, investors on the Asian stock exchanges are also not letting go of fears of a recession. Rising inflation and global central bank rate hikes are fueling investor concerns about an economic downturn. The Nikkei Index, which comprises 225 stocks, is down 1.3 percent around half an hour before the end of trading in Tokyo.
Good guidance from the Nasdaq
Inconsistent specifications for today’s trading day come from Wall Street. Investors had only partially ventured back to the US stock exchanges on Friday. The Dow Jones index of standard values closed 0.1 percent lower at 29,888 points. The tech-heavy Nasdaq, on the other hand, advanced 1.4 percent to 10,798 points. The broad S&P 500 gained 0.2 percent to 3674 points.
“Markets will not calm down until there is a sense that actions by the Fed and other central banks will be successful, not only to curb inflation but also to try to prevent a global recession,” said Kenny Polcari, managing partner at the consulting firm Kace Capital.
Bitcoin falls below $18,000 at times
The crypto currency Bitcoin continued its price slide over the weekend and at times fell well below the important $ 20,000 mark. For comparison: In November, around $68,000 was paid for a bitcoin. “Breaking $20,000 shows that confidence in the crypto industry has collapsed,” said OANDA market analyst Edward Moya.
Gold a little more expensive again
The euro may continue to stabilize above the $1.05 mark. The European single currency is currently trading at $1.0523. The dollar, which is also trading somewhat weaker against other important currencies, is benefiting the price of gold. The price of a troy ounce of the yellow precious metal rose in the morning by 0.2 percent to 1843 dollars.
Delivery Hero has to vacate the DAX for Beiersdorf
Just a few months after being dropped from the DAX, the consumer goods manufacturer Beiersdorf is now returning to the top stock exchange league. In return, the food delivery service Delivery Hero has been relegated to the MDAX. The operator of wind and solar parks Encavis, which was previously listed in the SDAX, will also be included in the MDAX, swapping places with the financial services provider Hypoport.
PNE Wind in the SDAX for the first time
In addition to Hypoport, the armaments company Hensoldt and the special pharmaceutical company Medios are now represented in the SDAX again, as well as the wind farm project developer PNE for the first time. The laser expert LPKF, the wind turbine manufacturer Nordex and the carbon fiber specialist SGL have to be eliminated.
New glyphosate risks for Bayer in the US?
The US Environmental Protection Agency has been ordered by an appeals court to re-examine the health risks of glyphosate. The court cast doubt on the EPA’s assessment that the active ingredient in Bayer’s controversial weed killer Roundup poses no particular risk to humans. Bayer is facing numerous US lawsuits in the United States alleging cancer risks from glyphosate.
USA before the start of corona vaccinations for small children
After an advisory board to the US Food and Drug Administration (FDA), the CDC has also spoken out in favor of using coronavirus vaccines in children between the ages of six months and five years. Both the vaccine from the manufacturers BioNTech and Pfizer and the preparation from Moderna could be used for around 18 million small children. According to the US government, it could start as early as tomorrow.
Does Credit Suisse have an oligarch problem?
Credit Suisse is faced with a new multi-million dollar legal case. As the “Sonntagszeitung” writes, the Russian-born oligarch Vitaly Malkin is demanding 500 million francs from the major Swiss bank. Credit Suisse rejects the allegations.