Market report
Status: 06/30/2021 07:27 a.m.
The leading German stock exchange index is about to get off to a solid start and should defend the price range reached yesterday. However, the record high for the DAX remains out of reach even in the middle of the week.
The stock market barometer is expected to start trading in the morning at 15,690 points, as indicated by pre-market indications. This would mean that the DAX would initially defend exactly yesterday’s closing level, but it will not go any further up towards the record high (15,803 points) for the time being.
Wall Street with new records
The requirements from the stock exchanges overseas are mixed in the morning. On Wall Street, the indices had reached new highs in the course of trading, but before the momentum subsided a little. Based on price gains in financial stocks, the US stock exchanges continued their upward trend. The Dow Jones closed slightly up on 34,292 points. The technology-heavy Nasdaq 100 advanced 0.2 percent to 14,528 points. The broad S&P 500 improved marginally to 4291 points.
US banks are paying more dividends
The focus in the evening was on the banking sector. The leading Wall Street banks want to distribute more money to shareholders after passing the stress test. Morgan Stanley wants to double the quarterly dividend to 70 US cents and use up to twelve billion dollars for share buybacks.
In Asia, investors remain cautious this morning. The Nikkei index, which comprises 225 values, remained virtually unchanged over the course of the year at 28,815 points. The broader Topix index remained unchanged and stood at 1950 points. The Shanghai stock exchange was up 0.2 percent. The index of the most important companies in Shanghai and Shenzen gained 0.4 percent.
Industry slowed down in China and Japan
Weak industrial data came from China and Japan in the morning. In China, the official purchasing managers’ index (PMI) for industry fell to 50.9 (April: 51.0) points in June. Semiconductor shortages and requirements to combat the corona pandemic also hit Japanese industry harder in May than feared. The government announced on the basis of preliminary data in Tokyo that industrial production fell by 5.9 percent compared to the previous month.
Euro continues to weaken
In the foreign exchange market, the euro is still having a hard time making headway back towards the $ 1.20 mark. In the morning, the common currency even traded just under $ 1.19 at times. Oil prices are on the up again. A barrel of North Sea Brent costs $ 74.60 this morning, half a percent more than yesterday. The troy ounce of gold is stable at $ 1,759.
VW goes to the US Supreme Court
VW is attracting attention in the morning among the DAX companies. The company suffered a major defeat in a US legal battle over possible further high fines in the “Dieselgate” scandal. The Ohio Supreme Court ruled Tuesday that the state can pursue sanctions against the automaker for systematic exhaust gas manipulation that go beyond the penalties already agreed at the US federal level. When asked, Volkswagen said it wanted to bring the case to the US Supreme Court, the American Supreme Court.
Air Europa takeover is shaky
The EU wants to comprehensively examine the planned takeover of the Spanish airline Air Europa by the British Airways parent IAG. The merger could restrict competition, said the EU Commission in justification. The EU authorities will now decide by November 5 whether the transaction will be waved through. IAG wants to acquire Air Europa at a bargain price. With 500 million euros, the group is only putting half as much on the table as it was promised in November 2019. In addition to British Airways, IAG already owns the Spanish airlines Iberia and Vueling as well as the Irish Aer Lingus.
Didi also competes with Uber on the stock market
The Chinese Uber rival took in around four billion dollars on its US IPO, according to an insider. The 288 million deposit receipts (ADS) were placed at $ 14 each, according to an insider. The company is valued at more than $ 70 billion in the market. Didi didn’t want to comment on that. The ride operator is funded by companies such as Japanese technology investor SoftBank, online retailer Alibaba, and Chinese games and technology giant Tencent.
Musk needs billions for satellite project
The satellite project of the electric car billionaire Elon Musk could require investments of 20 to 30 billion euros, according to him. Five to ten billion of these are conceivable as start-up investments before Starlink even generates any significant cash flow. “Basically that’s a lot,” said Tesla boss Musk in a video interview for the Mobile World Congress in Barcelona. Starlink is supposed to supply remote areas with the Internet via a network of satellites.