market report
Status: 07/05/2022 07:25 a.m
Recession fears and fears of a gas blackout continue to keep the German stock market in check. Despite their failure yesterday, the DAX bulls dare to come out again this morning.
The DAX should start XETRA trading with a strong premium. The broker IG assesses the 40 German standard values at the hour 0.9 percent higher at 12,887 points. This is the next attempt to stabilize the DAX.
The day before, the leading German index had already started a recovery attempt towards the 13,000 point mark. But without Wall Street being closed for the holiday, the DAX bulls quickly ran out of steam. The DAX ultimately had to give up all initial gains in the course of trading and closed 0.3 percent down at 12,773 points.
Important DAX brands in focus
An increase above yesterday’s daily high of 12,920 points would now open the gate wide towards the 13,000 point mark in the DAX. On the underside, it is still important to note the three-month low of 12,619 points marked in the previous week. It acts as a key support above the yearly low (12,439 points).
Gas crisis is the sword of Damocles for the stock market
Meanwhile, the risks to corporate earnings remain high. Quite a few market observers fear that the central banks’ aggressive interest rate policy in combination with a European gas crisis could trigger a recession.
“The gas crisis that is looming in Europe, but especially in Germany, is hanging over the Frankfurt Stock Exchange like the sword of Damocles,” emphasizes analyst Jochen Stanzl from CMC Markets. The fear of an emergency is too great if Nord Stream 1 does not go back on line after the planned maintenance work at the end of the month.
Nikkei up, Shanghai down
Inconsistent specifications come from the stock exchanges in Asia in the morning. While the Japanese Nikkei index, which comprises 225 stocks, was up 0.9 percent shortly before the close in Tokyo, the Shanghai stock exchange was down 0.2 percent. Tailwind for the markets comes from fresh economic data from China: According to the Caixin Purchasing Managers’ Index, the service sector there grew faster in June than it has in almost a year.
Gold remains clear above $1800
An ounce of gold is $1811 in early trading. The yellow precious metal can thus further extend its gap to the $1800 mark, which it regained only recently. The euro is trending sideways at $1.0435.
Government wants to create “protective shield” for Uniper & Co
Among the individual values on the German stock market, the focus is once again on the Uniper share. In the gas crisis, the federal government wants to create a “protective shield” for ailing energy companies. Legal changes are intended to create the conditions for the federal government to be able to invest in companies like Uniper.
Delivery Hero completes acquisition of Glovo
The Spanish competitor Glovo now belongs to the delivery service Delivery Hero. The MDAX group announced that all measures to complete the transaction had been taken. Now all that is left is the increase in share capital and the subsequent admission of the shares to trading. After that, Delivery Hero will hold 94 percent of the shares in the Spanish group.
Encavis boss Paskert leaves
The solar and wind farm operator Encavis is reorganizing its board of directors for the European energy transition. Company boss Dierk Paskert will resign from office on December 31, 2022 and will “leave the group prematurely by mutual consent,” the MDAX company announced yesterday after the stock market closed. CFO Christoph Husmann will be appointed Spokesman of the Management Board on January 1, 2023, thereby maintaining the continuity of the basic business orientation.