market report
Status: 06.07.2022 07:37
The leading German index should recover at least partially from yesterday’s setback in the morning. The omens from overseas are mixed, however, and recession concerns remain.
According to pre-market indications, the German stock market barometer is expected to start at 12,550 points, which corresponds to an increase of 1.4 percent. After the index had lost almost three percent yesterday, half of the losses would have been recovered.
Wall Street with roller coasters
On the further way up, however, it will be rocky for German shares. This is also indicated by the specifications from overseas. The US stock exchanges did not find a uniform direction after the long weekend. The US standard index Dow Jones closed 0.4 percent lower at 30,967 points on Tuesday. The technology-heavy Nasdaq, on the other hand, rose 1.8 percent to 11,322 points. The broad S&P 500 gained 0.2 percent to 3831 points. In early trading, the economic pessimists initially took over the helm on Wall Street, but a recovery movement then set in at the end.
Asian stock exchanges in the red
Fear of a recession is also dampening trade in Asia in the morning. “The noise about recession risk is getting louder and louder,” said Jason Teh of Vertium Asset Management in Sydney. The Japanese Nikkei index was 1.3 percent lower at 26,090 points. The broader Topix index fell 1.4 percent to 1853 points. The Shanghai stock exchange was down one percent.
Euro remains ailing
On the foreign exchange market, the downward slide of the euro continues in the morning, slowed down. The European single currency is currently trading at 1.0265, down slightly from yesterday’s close, marking another 20-year low.
Oil is getting cheaper
There are also concerns about a recession on the oil market, causing prices to fall further. The US crude oil grade WTI is currently quoted at 98.63 dollars per barrel (159 liters). The North Sea variety Brent costs 103.68 dollars per barrel. The “anti-crisis currency” gold cannot currently benefit from the critical mood on the financial markets, the price for a troy ounce of the precious metal is unchanged at 1766 dollars in the morning.
Automakers are looking to China
On the German stock market, the focus could be on car shares in the morning. In China, sales from car manufacturers to dealers rose again in June for the first time since February. The number of vehicles sold increased by a good fifth to 2.45 million units compared to the previous year, as preliminary key data from the manufacturers’ association CAAM published in Beijing on Wednesday showed. Compared to the previous month, this is an increase of a little more than a third.
VW boss finds e-fuels pointless
Volkswagen boss Herbert Diess thinks synthetic fuels, so-called e-fuels, make little sense. The efficiency of these fuels is “extremely poor,” said Diess in an interview with the “Süddeutsche Zeitung” (Wednesday). At the request of the traffic light partner FDP, the federal government wants to ensure that cars in the EU can also be operated with e-fuels after 2035 and thus also be allowed to have combustion engines.
Uniper is putting pressure on LNG terminals
After the approval for Germany’s first liquefied natural gas terminal (LNG), the energy group Uniper assured that all environmental investigations relating to the project should be carried out as prescribed – regardless of the high time pressure. “Higher speed does not mean poor quality,” said the manager responsible for investment planning in Wilhelmshaven, Holger Kreetz, of the German Press Agency. The Oldenburg Trade Inspectorate recently approved the installation of the initially floating systems. Ships loaded with LNG should be able to be handled in Wilhelmshaven as early as December if possible.
Curevac is suing Biontech
The Tübingen biotech company Curevac has filed a lawsuit against the corona vaccine manufacturer Biontech and two subsidiaries. As Curevac announced last night, it is about appropriate compensation for an infringement of intellectual property rights. The lawsuit was brought before the District Court of Düsseldorf. It’s about four patents. Biontech rejected the allegation of patent infringement. In the process, it must be clarified to what extent the respective patents have been incorporated into the development of the Biontech vaccine, according to Curevac boss Franz-Werner Haas.