Market report
Status: 08/16/2021 7:48 a.m.
Disappointing economic data from China arouse concerns on the stock markets that the global growth engine could stall. This could also bring the record hunt in the DAX to an abrupt end.
After the DAX exceeded the round mark of 16,000 points for the first time in its history on Friday, the leading German index is now likely to start the new week much less spectacularly. Banks and brokers rate the German standard values 0.4 percent lower at 15,917 points.
Disappointing China data put pressure on investors’ buying mood. Both the retail sales and industrial production figures in July fell well short of forecasts, showing a surprisingly significant slowdown in the global growth engine.
Drastic pandemic measures
The background is the restrictions to contain the corona pandemic in China. The Middle Kingdom is pursuing a zero-Covid strategy and is taking sometimes drastic measures, which experts say could stifle the recovery of the economy.
This in turn would also have consequences for the national economies in Europe and the USA, as the strict pandemic measures in China give rise to new risks for the global supply chains, which are already under attack.
Asia in the delta stranglehold
“The low vaccination rates and low tolerance for the spread of the virus among the population suggest that Asia is the region most economically at risk from the Delta variant,” said Bruce Kasman, economist at JPMorgan.
These concerns are reflected in the Asian stock exchanges. The Japanese Nikkei index, which comprises 225 values, is 1.7 percent lower at 27,496 points. In Hong Kong, the Hang Seng has lost 0.8 percent.
New records on Wall Street
The negative targets from China are a heavy burden for the DAX. Added to this is the uncertainty about the possible geopolitical effects of the collapse of the Afghan government.
The bottom line was that the US stock exchanges barely moved on Friday. Nevertheless, it was still enough for new highs in the course of trading. The Dow Jones index of the standard values went out of trading virtually unchanged at 35,515 points. The broad S&P 500 gained 0.2 percent to 4468 points. The index of the technology exchange Nasdaq stagnated at 14,822 points.
Oil prices in the wake of China
The weak China data are fueling fears on the oil market of a faltering economic recovery and thus declining demand for oil from the world’s largest oil importer. A barrel (159 liters) of the North Sea Brent costs $ 69.87 in early trading, which is 1.0 percent less. WTI oil is down 1.1 percent to $ 67.71 a barrel.
The euro is trending sideways at $ 1.1793 in early forex trading. The troy ounce of gold costs 0.1 percent less at $ 1776.
Hella comes into French hands
The MDAX-listed Hella share is moving into focus on the German stock market. The founding family Hueck / Röpke gave the French auto supplier Faurecia the contract for their package of 60 percent of Hella shares on Saturday. The remaining shareholders will receive a takeover offer for 60 euros per share plus a dividend of 96 cents. Overall, the headlight specialist from Lippstadt in North Rhine-Westphalia is valued at 6.8 billion euros in the sale.
Stage victory for Sonos in the patent dispute with Google
The loudspeaker specialist Sonos has achieved a stage win in its patent dispute with Google. A judge from the US trade authority ITC came to the conclusion that the Internet company infringed five of the hi-fi company’s patents. The ITC can prohibit the importation of goods into the USA in the event of patent infringements.