market report
Status: 03/22/2022 07:49 a.m
Fading hopes of progress in negotiations in the Ukraine war and the prospect of a tighter monetary policy in the USA are dampening the mood on the stock market: the DAX is likely to start weaker.
Banks and brokers expect that the DAX will start trading today with slight price losses. Yesterday, the leading German index lost 0.6 percent to 14,327 points. The impasse in the Ukraine war is currently causing investors to shy away from risky investments in the stock market.
US Federal Reserve Chairman Jerome Powell also caused a certain amount of unrest on Monday evening because he fueled speculation about a tighter monetary policy: If necessary, the Fed could raise interest rates more aggressively than usual, said Powell. “The job market is very strong and inflation is way too high.” There is an obvious need to act quickly to return the monetary policy stance to more neutral levels.
Wall Street in reverse
That weighed on Wall Street. The Dow Jones lost 0.6 percent yesterday to 34,553 points. The tech-heavy Nasdaq fell 0.4 percent to 13,838 and the broad S&P 500 closed little changed at 4,461.
“The market is digesting the effects of tighter financial conditions, higher oil prices and ongoing geopolitical uncertainty on US growth,” said Erin Browne, portfolio manager at investment firm Pimco.
In Asia, on the other hand, the Nikkei closed in the morning with a premium of 1.5 percent to 27,224 points.
Rebounding oil prices could be another factor putting pressure on equity markets. A barrel (159 liters) of Brent sort rose in price by 2.56 dollars to 118.18 dollars, WTI climbed by 2.19 dollars to 114.31 dollars.
VW production at the Wolfsburg plant picks up speed again
Against the background of a stabilized supply situation for parts, Volkswagen is ramping up production at its main plant in Wolfsburg faster than planned over the next two weeks. A second shift in Golf production will start this Wednesday. In the next week, the Golf will then be produced in a three-shift operation in order to be able to deliver customer vehicles as quickly as possible.
Because of the Ukraine war, the supply problems had also widened at Volkswagen. Among other things, missing deliveries for cables had become a problem.
Nemetschek on course for growth
The provider Nemetschek, which specializes in construction and design software, presented figures for the past fiscal year: Revenue increased by 14.2 percent to 681.5 million euros, the operating result (EBITDA) by 28.8 percent to 222 million euros. The bottom line is that the company was able to increase consolidated profit by 38.9 percent to EUR 134.6 million.
Vodafone and Telekom close “grey spots”
Thanks to a cooperation between Deutsche Telekom and Vodafone, mobile phone customers in rural areas no longer end up in dead spots as often as they used to. According to the companies, more than 2,000 “grey spots” have been closed in Germany since last year and each other have been allowed to “network sharing” on each other’s antennas. Half of it is about locations from Telekom and half from Vodafone. So if you use the Vodafone network, for example, you now have a good 1000 fewer dead spots nationwide.
“Gray spot” means that only one of the three German network operators is transmitting there – customers of the other two have no 4G reception there. According to the Federal Network Agency, the gray areas covered 6.44 percent of Germany in January.
Increase in sales at Nike
Nike sales rose 9 percent in North America in the third quarter. In contrast, China fell by eight percent. In view of factory closures in Vietnam last year, Nike gave priority to the North American business over the Chinese market for deliveries. Total sales rose five percent to nearly $10.9 billion. Net profit fell four percent to almost $1.4 billion.
Stada expects losses in the Russian business
The drug manufacturer Stada expects losses in its important business in Russia because of the Ukraine war. CEO Peter Goldschmidt said he is currently not worried about the demand for medicines in Russia. Rather, it is a challenge to ensure the supply chain and production. “From an economic point of view, the development of the ruble is crucial,” said Goldschmidt. Since Stada accounts in euros, a further weak exchange rate of the Russian currency would hit the Grippostad manufacturer.
Russia is one of the most important markets for Stada and contributes around 14 percent to sales. The group employs 2,100 people there, about a sixth of the global workforce, and is one of the largest local suppliers.