market report
Status: 03/14/2022 07:55 a.m
At the beginning of the week, the signs of relaxation were dominant on the stock exchanges: the price of oil is falling and the Japanese Nikkei is rising sharply. The DAX is also likely to start the new stock market week calmly with price gains.
The German stock market should continue to climb at the beginning of the week. The broker IG estimates the 40 German standard values 1.3 percent higher at 13,800 points. The recent upward trend is therefore likely to continue for the time being. On Friday, the DAX said goodbye to the weekend with an increase of 1.4 percent to 13,628 points.
DAX has its sights set on 14,000
Investors are hoping for progress in peace talks scheduled for today despite ongoing fighting in Ukraine, but risks remain. “In the short term, the stock market risk lies in the news situation, so volatility should remain high,” believes analyst Sven Streibel from DZ Bank. In the previous week, the trading range of the leading German index was over 1500 points.
On the upside, the 14,000 point mark is now the next target. Just below that, at 13,943 points, is the high of the previous week. Should the DAX break this hurdle, the upward momentum on the German stock market would increase further.
Oil prices fall significantly
Clear signs of relaxation, also for the stock markets, come from the oil market. Oil prices fell significantly at the beginning of the week – an important indication of investors’ waning risk aversion. The price of a barrel (159 liters) of North Sea Brent fell by 2.5 percent to $109.89 in the morning. A barrel of the US WTI variety costs 2.9 percent less at $106.21.
Gold price in relaxation mode
The price of gold tended sideways at the beginning of the week. An ounce of the yellow precious metal currently costs 1,974 dollars. This is also a clear sign of relaxation, since the flight of investors to “safe havens” drove the price of gold up to 2070 dollars in the previous week. The euro is 0.2 percent after $ 1.0911.
Negative guidance from the Dow Jones
Meanwhile, Wall Street’s guidelines don’t exactly encourage stock purchases. On Friday, the US stock exchanges closed with a drop in prices due to the Ukraine war. Investors were worried about the economic consequences of the war, which is dampening global growth on the one hand and driving up inflation at the same time.
The US standard value index Dow Jones went 0.7 percent lower to 32,944 points from trading. The tech-heavy Nasdaq fell 2.2 percent to 12,843 points. The broad S&P 500 lost 1.3 percent to 4204 points.
Nikkei with strong gains
A mixed picture emerged on the stock exchanges in Asia. The Tokyo stock exchange, for example, has shown itself to be stronger. The Nikkei Index, which comprises 225 stocks, recorded an increase of 0.6 percent to 25,308 points. In contrast, Shanghai is down 2.1 percent at the hour.
Moscow Stock Exchange remains closed
Meanwhile, the Moscow Stock Exchange remains closed for the third straight week. From March 14 to 18 there will be no stock trading, according to the Tass Agency, the most important Russian trading platform.
After the last day the Moscow stock exchange was open on February 25, the shares of Russian companies initially lost a lot of value before they were suspended from trading. A number of exchange-traded index funds with Russian stocks are also currently not being traded. In addition, some global index providers such as MSCI want to ban Russian stocks from their indices.
Has the EnBW subsidiary VNG applied for state aid?
On the German stock market, the focus is on the EnBW share. The EnBW subsidiary Verbundnetz Gas (VNG) has applied for a loan option from the state development bank KfW in order to secure itself in the event of a failure of Russian gas supplies, reported the “Handelsblatt” and referred to industry circles. When asked, VNG itself said that it was “in contact with the responsible authorities in the federal government and the associations”.
Deutsche Bank is shutting down remaining business in Russia
Deutsche Bank is in the process of shutting down its business in Russia following the Russian invasion of Ukraine. Also, no more new business will be done there, as the bank announced. “At the same time, we are helping our existing non-Russian international clients to scale back their operations in the country.”
Covid lockdown: Foxconn stops production facility for iPhones
After the corona lockdown in Shenzhen, southern China, Apple partner Foxconn stopped production in the metropolis at its manufacturing facility, which also manufactures iPhones. Taiwanese parent company Hon Hai in Taipei said production lines at other plants are being adjusted to reduce the potential impact of the disruption.
Elon Musk sees Tesla under inflationary pressure
According to a tweet from Tesla CEO Elon Musk, the US electric car maker and space company SpaceX are facing significant inflationary pressures in commodities and logistics. Tesla had already increased the prices for some models last week. Tesla shares have lost around 25 percent of their value since the beginning of the year.