Status: 07/26/2021 9:42 am
Once again it is bad news from China, which is also leading to price losses in this country. But there can be no talk of a trend reversal. The DAX remains in the neutral area.
Price losses on the stock exchanges in Hong Kong and Shanghai have also unsettled investors in Frankfurt. After the DAX had climbed one percent to 15,669 points on Friday, the new trading week began with price losses of a good half a percent at 15,580 points. In the further course, however, the DAX briefly managed to regain the 15,600 point mark. The leading index thus continues to move in a neutral range between 15,300 and 15,800 points.
The reason for the caution in the morning is exchange rate losses in China. There the Shanghai Composite fell by 2.3 percent. Hong Kong’s Hang Seng fell three and a half percent. At the weekend, the Chinese government announced a reform of the private education sector. Companies that teach school teaching programs are therefore not allowed to make a profit or go public. That could put some tech companies under pressure. In addition, all eyes are on the visit to China by US Secretary of State Wendy Sherman. Relations between the two countries remain tense.
On the other hand, business on the world’s leading exchange in New York was splendid. For the first time in its history, the Dow Jones index crossed the 35,000 mark on Friday and closed at 35,061 points. The market-wide S&P 500 and the indices of the tech exchange Nasdaq also reached highs.
Does the Ifo bring new impulses?
The morning’s ifo business climate index could provide new impetus for the DAX. In the most important German economic indicator, companies assess their current business situation and their expectations for the next six months every month. It gets exciting after the US stock market closes in the evening. Then Tesla, one of the darlings of young investors, presents its latest figures. Since the beginning of the year, however, the electric car manufacturer’s papers have clearly lost value.
Euros to 1.18 dollars
The exchange rate of the euro climbed to 1.18 dollars in the morning and is therefore more expensive than on Friday. The European Central Bank (ECB) had last set the reference rate at 1.1767 dollars.
Vonovia: Takeover of Deutsche Wohnen failed
Vonovia confirmed in the morning that the second takeover attempt by its competitor Deutsche Wohnen had also failed. Instead of the required 50 percent, only 47.3 percent of the shareholders of Deutsche Wohnen would have accepted the purchase offer. Vonovia shares then came under pressure again after they had already lost 2.7 percent on Friday. Deutsche Wohnen’s papers are also weakening.
Vonovia had already announced on Friday that it was unlikely to be able to secure enough shares. The second attempt to take over Deutsche Wohnen has thus failed for the time being. Vonovia’s next steps are still unclear: It is conceivable, for example, to sell Deutsche Wohnen shares, acquire additional shares or make a new offer to shareholders.
TSMC is considering building a chip factory in Germany
Against the background of the rapidly growing demand for semiconductors, the Taiwanese chip manufacturer TSMC is considering building a factory in Germany. In addition to Germany, the construction of such a plant in Japan is also being examined, CEO Mark Liu said at the annual general meeting that morning. If the considerations are implemented, TSMC strives to share the costs with the customers or the countries.
BMW interrupts production at the Regensburg plant
Due to missing components with computer chips, BMW interrupts car production at the Regensburg plant. A one-week break is planned from today, as a spokeswoman said. After that, a holiday week was planned anyway, so production would resume on August 9th.
Ryanair deep red, but recovery in sight
The sluggish recovery of the travel business during the Corona crisis kept the low-cost airline Ryanair in the red in the past quarter. The bottom line was a loss of 273 million euros in the first quarter of the business year to the end of June, almost one and a half times as much as a year earlier. Ryanair boss Michael O’Leary expects a significant increase in passenger numbers in the summer, provided that increasing numbers of infections do not result in further setbacks in the flight business.
After more than five million passengers in June, the number of passengers is expected to reach almost nine million in July and more than ten million in August. For the current financial year until the end of March 2022, O’Leary expects a small loss or, at best, a result close to the zero line. The number of passengers is expected to reach 90 to 100 million. Previously, he had assumed around 80 million passengers.
Philips: Diagnostics drives business operations
A robust diagnostics business continues to provide the medical technology group Philips with a tailwind. Sales in the second quarter rose by six percent to 4.2 billion euros compared to the same period in the previous year. Adjusted operating profit (Ebita) increased by more than a third to 532 million euros. That was a little more than analysts expected. The bottom line was that Philips earned less because of additional provisions for a product recall. The net profit fell by more than a quarter to 153 million euros. The medical technology group was somewhat more cautious with the outlook and expects an improvement in the operating profit margin of 0.6 percentage points, which would correspond to the lower end of the previous range.
Bitcoin back at nearly $ 40,000
Bitcoin is back in high demand at the beginning of the week: The cyber currency increases in the morning by up to 22.3 percent to 39,748 dollars, which is the highest level in almost six weeks. Last week, the price had fallen to its lowest level in a month.