market report
As of: 04/05/2022 07:44 a.m
Market observers expect that the DAX will start trading on a stable basis. Negative signals are coming from the oil market. Investors are also concerned about new sanctions against Russia.
After a robust start to the week, the DAX is likely to be treading water for the time being. The broker IG appraised the leading German index a few points higher at 14,522 points before the start. Yesterday, the DAX closed half a percent higher at 14,518 points. Above all, concerns about a recession and other possible sanctions against Russia are the issues that investors are currently grappling with.
“Everything still looks like a quiet trading week for the DAX, characterized by caution and restraint, which would not be the worst scenario after the strong recovery in March,” comments Konstantin Oldenburger, market analyst at CMC Markets.
Positive indications from Wall Street could provide a tailwind today. The Dow Jones closed yesterday 0.3 percent higher at 34,921 points. The tech-heavy Nasdaq advanced 1.9 percent to 14,532 points. The S&P 500 gained 0.8 percent to 4582 points.
Tesla drives markets
Among other things, record delivery figures from the electric car manufacturer Tesla and the entry of CEO Elon Musk into the short message service Twitter ensured a good mood. The Nasdaq technology exchange in particular benefited from this. The market experts at Credit Suisse explain the tech strength above all with the now very low positioning of investors, which is being increased again.
In Japan, on the other hand, the Nikkei fell slightly, and the Topix also lost ground. Markets in mainland China and Hong Kong were closed today for a public holiday. Shanghai went into a two-phase lockdown over the past week to contain the city’s largest-ever coronavirus outbreak.
Oil prices are picking up again
After a weaker phase, oil prices are currently picking up again. Saudi Arabia had announced that it would raise prices for customers in all regions. The prices of the state oil company Saudi Aramco for Asian customers for the coming month will be increased by 4.40 dollars compared to March. Analysts spoke of a massive increase.
A barrel (159 liters) of the Brent variety rose to just under 109 dollars, for a barrel of the WTI variety more than 104 dollars had to be paid.
Financial investors examine new bid for Aareal Bank
The financial investors Advent and Centerbridge are still interested in Aareal Bank after the failed takeover attempt. The commercial real estate financier announced that the two financial investors are considering a new takeover bid. “According to the financial investors, an offer price of EUR 33 per share is now being considered,” it said. This includes the promised dividend totaling EUR 1.60 per share. “Investors are also considering a minimum acceptance threshold of no more than 60 percent.”
At the beginning of February, the same financial investors’ attempted takeover of EUR 31 per share failed because the minimum acceptance threshold of 60 percent was not reached.
Kion withdraws prognosis
Kion withdraws its forecast for this year. “Due to the bottlenecks in the procurement markets that are likely to last much longer than expected, the sharp rise in material and logistics costs and renewed corona lockdowns, which are particularly affecting the Asian market, the forecast for the 2022 financial year can no longer be maintained,” said the boss of the forklift manufacturer, Rob Smith. There are considerable uncertainties in the assessment of business development. There should be a new forecast in the course of the year.
Sixt 2022 off to a strong start
The car rental company Sixt increased its sales significantly in the first quarter. The company announced that sales had risen from EUR 330 million in the same period last year to EUR 580 million. Earnings before taxes (EBT) are expected to be between EUR 80 and 95 million. In the first quarter of 2021, a loss of 14 million euros was incurred.
Sixt blamed the “continuingly good market price level” for the good development at the start of the year. In the same quarter of the previous year, business activities, particularly in Europe, were significantly impacted by restrictions on travel caused by the pandemic.