Market report
As of: 08/27/2021 10:06 am
The DAX started trading with slight losses. Investors in the German stock market shy away from the risk at the end of the week – and they have good reasons for that.
At the start, the DAX fell 0.1 percent to 15,779 Points. The Jackson Hole US Federal Reserve Conference, which is due to be held this afternoon, is causing uncertainty and investors are hoping for a clue to future monetary policy. On Thursday, some Fed members renewed their position that an early reduction in bond purchases (“tapering”) was appropriate.
Numerous stress factors
In addition, numerous negative factors inhibit investors’ willingness to buy, including yesterday’s double attack on Kabul airport and the rapidly increasing number of corona infections.
There are also negative impulses from Wall Street: yesterday, after three days of record highs in a row, the streak of success of the American indices S&P 500 and Nasdaq 100 was broken.
From a technical perspective, yesterday’s downward price gap from 15,853 to 15,835 points in the DAX also gives investors food for thought. “Such price gaps, which remain open on a closing price basis, create a short-term stress factor,” emphasizes Jörg Scherer, Head of Technical Analysis HSBC Trinkaus & Burkhardt, in a current analysis.
On the downside, the recent daily lows at 15,702 / 15,656 / 15,622 counters serve as support. The bulls have already managed to take over the reins here three times in the past, and the DAX has turned upwards.
Investors cut risk on Wall Street yesterday. The Dow Jones index of standard values closed 0.5 percent lower to 35,213 points. He is more than 400 points away from his previous record.
The technology-heavy Nasdaq was down 0.6 percent to 14,945 points. The broad S&P 500 also lost 0.6 percent to 4469 points. Both S&P and Nasdaq had temporarily reached new highs the day before. In addition to the uncertainty about future US monetary policy, the attack in Kabul and profit-taking also weighed on the American stock exchanges.
The mood on the Asian stock exchanges was also somewhat subdued at the end of the week. Investors have become more cautious. “There are three things that are adding to the mood at the moment,” said Kyle Rodda, an analyst at IG Markets, referring to the weak development on Wall Street after the attacks in Afghanistan and caution about the upcoming symposium in Jackson Hole and the fact that Asian stock exchanges weakened this week as investors were nervous about possible future regulatory measures in China.
The Nikkei index, comprising 225 values, was 0.4 percent lower at 27,641 points at close of trading in Tokyo. The Shanghai stock exchange, on the other hand, is up 0.5 percent.
The price of gold topped the psychologically significant $ 1,800 mark in early trading. Currently, one troy ounce of gold pays 1804 dollars, 0.6 percent more than the previous day.
The yellow precious metal can benefit from the increasing risk aversion of investors as well as from the somewhat weaker US dollar. The euro rose slightly to $ 1.1767.
Oil prices are seeing moderate gains this morning. A barrel (159 liters) of North Sea Brent costs $ 71.92. That is 85 cents more than the day before. The price of a barrel of the American West Texas Intermediate (WTI) rose by 79 cents to $ 68.21.
In the weekly balance there are strong premiums, the two most important types of oil in the world have increased by more than five dollars each. A predominantly good mood in the financial markets and a weaker dollar boosted prices. Since oil is quoted in dollars, a falling dollar creates higher demand from the non-dollar area.
On the German stock market, investors continue to focus on the securities of the fund provider DWS and its parent company Deutsche Bank. According to insiders, the US Securities and Exchange Commission is examining whether the DWS has been too lax with criteria for sustainable investments. Yesterday, the shares of DWS rushed down by more than 13 percent. Even today, the papers of Deutsche Bank and DWS are not allowed to recover for the time being; they are still under pressure in early trading.
The biotech company Morphosys has received conditional approval in the EU for tafasitamab in combination with lenalidomide for a specific cancer problem. It is about the treatment of adults with relapsed or refractory diffuse large B-cell lymphoma. Investors were enthusiastic, in after-hours US trading, the share price rose almost ten percent.
The organizer and ticket dealer CTS Eventim is hoping for a major order. Together with France Billet and Orange Business Service, negotiations are in the final stages of negotiations with the Organizing Committee for the Olympic and Paralympic Games in Paris 2024 on a ticketing agreement. CTS Eventim expects the agreement to generate positive sales in the double-digit million range.
Borussia Dortmund papers storm to the top of the SDAX in early trading. Investors see good chances for advancement after the draw of the opponents in the Champions League. The Westphalia meet in Group C against Sporting Lisbon, Ajax Amsterdam and Besiktas Istanbul.
After the boom in the Corona crisis, growth at Peloton is slowing down significantly. In the most recent fiscal quarter, the fitness equipment specialist increased revenues year-on-year by 54 percent to $ 936.9 million. In the previous quarter, however, sales had more than doubled to over a billion dollars. That, combined with a cautious outlook, did not go down well with investors. The fact that Peloton admitted an unspecified accounting problem also caused nervousness.
Computer giant Dell continues to do good business thanks to the continuing trend towards home work in the pandemic and the high demand for PCs, notebooks and tablets. In the second quarter (to the end of July) Dell increased sales year-on-year by 15 percent to $ 26.1 billion. However, the net result fell – among other things due to significantly increased research and development expenses – by 20 percent to 880 million dollars.
The Russian authorities have fined the Netherlands-based company Booking.com a fine of 13 billion rubles (the equivalent of 14.9 million euros) for abusing its market dominance. The anti-monopoly authority accuses Booking.com of having banned Russian hotels and hostels from offering their services on other platforms for less.
According to a media report, metal particles may have been found in the contaminated batch of Moderna Covid-19 vaccine in Japan. The particles reacted to magnets, which is why one suspects that they are metallic, reported the Japanese broadcaster NHK. A representative of the Ministry of Health, however, said what the contamination was, had not yet been confirmed.
Apple has agreed on changes in a legal dispute with smaller developers over the company’s role in app sales on the iPhone and iPad. With the concession in the heated debate, a class action lawsuit by the US developers is to be ended. The larger legal disputes, for example with the game developer Epic or the streaming service Spotify, remain unaffected.