Despite the threat of a turnaround in interest rates: DAX investors are picking up again

Status: 29.09.2021 11:58 a.m.

After the positive start in the morning, the DAX was able to maintain its gains and was trading above 15,400 points again – after worries about a turnaround in interest rates caused heavy losses yesterday.

At lunchtime, the DAX is trading a good 150 points higher than yesterday and can thus make up for around half of the previous day’s losses. However, market observers are puzzling whether today’s recovery is a countermovement or just a pit stop before further price losses.

While skeptics see the resurgence in exchange rates only as temporary and point to the imminent end of the money glut from the central banks, there are also optimistic voices.

The course so far has shown that the DAX can rely on a group of buyers who have already caught up with them several times in the previous months, even in the event of major weaknesses, says Andreas Büchler from the index radar analysis company. Since April, the index has turned up again and again after falling to 14,800 to 15,000 points. “As long as this effect continues, investors have little to fear.”

Meanwhile, the economy threatens hardship. The German Institute for Economic Research (DIW) warns of a significant slowdown in the winter months. “The strong plus in economic output in the third quarter could be the calm before a stormy winter in which the German economy is barely moving,” said the institute.

Tailwind could come from Wall Street in the afternoon. There, the leading index Dow Jones is expected to be higher again after yesterday’s setback, most recently almost 200 points more than yesterday. The technology stocks on the Nasdaq, which were particularly badly hit yesterday, are also likely to start trading with profits.

The euro fell this morning to its lowest level in around eleven months. In the morning, the common currency cost 1.1657 dollars, the last time it was in November 2020. The European Central Bank (ECB) set the reference rate at 1.1678 dollars on Tuesday afternoon. The euro has been under pressure against the dollar for several weeks. One important reason is the differences in the monetary policy direction of the ECB and the US Federal Reserve (Fed). While the latter is heading towards a turnaround in monetary policy, the ECB has so far shown no such inclination.

Oil prices came under pressure this morning. The price of a barrel (159 liters) of North Sea Brent fell to $ 77.82. That was $ 1.27 less than the day before. The price of a barrel of the American West Texas Intermediate (WTI) fell similarly significantly to $ 74.03. This means that oil prices have again moved away from the level they had reached the previous day. The price of Brent rose to a three-year high of more than $ 80 on Tuesday.

In search of cash, the insolvent real estate company Evergrande sold its stake in Shengjing Bank to the state-owned investment company Shenyang Shengjing for around $ 1.5 billion. Evergrande’s shares in Hong Kong rose 9.4 percent as a result. The proceeds are to be used to pay off debts Evergrande has with the bank. On the other hand, there was no information for the time being about an interest payment of $ 47.5 million on a foreign bond due on Wednesday.

Business at the Leverkusen-based plastics group Covestro continues to run smoothly. The company expects to close the third quarter at or above the high end of forecast. For the third quarter, the DAX group recently expected an operating result (Ebitda) of 760 million euros to 860 million euros. A year ago it was “only” 456 million euros. The company plans to publish the quarterly figures on November 8th. Covestro only raised its annual forecast for operating profit in July.

The mechanical and plant engineering company Gea from the MDAX has prescribed a course of growth for the next five years. He is aiming for an annual organic increase in sales of four to six percent on average by 2026. Based on the 4.6 billion euros last year, this results in a sales target of 6 billion euros for 2026. In addition, Gea wants to improve the operating margin to more than 15 percent by then (2020: 11.5 percent). Restructuring expenses are excluded here. Another goal of “Mission 26”, as the company calls its growth strategy, is annual capital expenditure of 200 million euros.

The smartphone bank N26 has to pay a fine of 4.25 million dollars to the financial supervisory authority BaFin for inadequately combating money laundering. The Berlin start-up was accused of not having resolved enough to investigate suspected cases. N26 admitted that in 2019 and 2020 “fewer than 50 reports of suspected money laundering” were submitted to BaFin with a delay.

The US chip manufacturer Micron issues a sales warning for the current first quarter. The company says it expects revenues of $ 7.65 billion – plus or minus $ 200 million. Analysts had previously assumed an average of $ 8.57 billion. The reason is the bottleneck in materials for chip production. In after-hours trading, Micron shares plunged five percent. Most recently, the company benefited from the home office trend. In the fourth quarter, sales rose 36.4 percent to $ 8.27 billion compared to the same period last year.

The building materials group Heidelbergcement wants to buy a minority stake in a US software specialist for building materials. The purchase price for a 45 percent stake in Command Alkon is in the order of $ 250 million, a spokesman said on Tuesday when asked. The seller is the software investment company Thoma Bravo. These keep a majority stake in Command Alkon, announced the DAX group. With this step, Heidelbergcement is building a digital ecosystem for the building materials industry with partners.

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