Market report
Status: 07/27/2021 6:42 pm
Investors are worried about China. There, the supervisory authorities are increasingly intervening in the markets and accelerating the sell-off on the stock exchanges. The news from Beijing also put the DAX under pressure.
The record rally on the stock exchanges has stopped for the time being. Stock markets around the world were in the red today. Wall Street also started the day with losses. Tech stocks in particular were avoided. The Nasdaq lost two percent. The Dow Jones got off a little more lightly. The US standard value index was “only” 0.6 percent.
DAX holds just over 15,500 points
In the absence of support from its “big brother”, the DAX closed 0.6 percent lower at just over 15,500 points. It was the second minus day in a row. At times the price losses were even greater.
“Expropriation” of the shareholders in China?
China is proving to be an increasing burden. The supervisory authorities continue to intervene to regulate the financial markets, sectors and individual companies. In the opinion of Commerzbank strategist Chris-Oliver Schickentanz, the interventions already reached “up to the de facto expropriation of the shareholders”.
Since the government has recently focused primarily on technology companies, investors are likely to increasingly wonder which industry will next fall out of favor with the Chinese government. The uncertainty about how the government would proceed led to another slide in prices on China’s stock exchanges. The leading index CSI 300 slipped 3.5 percent to its lowest level since November 2020.
The guesswork of the Fed
In addition, there is the uncertainty about the further monetary policy course of the US Federal Reserve. Investors are wondering when the Fed will start tightening monetary policy. The ultra-loose course of the central bank is increasingly being questioned critically in view of the sharp rise in inflation and the economic upturn. The Fed will announce the outcome of its deliberations at the July meeting on Wednesday.
“The markets are expecting a slight turn away from the extreme looseness,” said market expert John Vail of Nikko Asset Management with a view to the Fed. Despite high inflation rates, the central bankers are unlikely to reverse the monetary policy trend yet. According to economists surveyed by Bloomberg, there should not yet be a clear signal to reduce bond purchases (tapering). Postbank expert Michael Blumenroth does not expect a schedule for reducing bond purchases until the fall.
US house prices are skyrocketing
Wall Street ignored the latest economic data. US consumer sentiment brightened slightly in July, with consumer confidence increasing by 0.2 points compared to the previous month. Analysts had expected a decline. In contrast, orders for durable goods rose less than expected in June. In addition, the real estate boom accelerated. US house prices rose 17 percent in May. This is the strongest increase since summer 2004.
Alphabet, Apple and Microsoft in focus
Investors are waiting for the quarterly flood of figures from the tech giants. After the US market closes, Apple, Google parent Alphabet and Microsoft present their balance sheets. Therefore, sluggish trading must be expected in the coming hours, said Randy Frederick, manager at brokerage firm Charles Schwab. “The market is generally more reactive than proactive.” The papers from Apple, Alphabet & Co, which are highly weighted in many stock indices, are partly responsible for the recent record rally on the US stock markets. Because of their high market value, the shares are also likely to be included in financial products such as some life insurance policies, whose performance at first glance has nothing to do with the stock market.
Tesla is growing fast
After the end of regular stock exchange trading, Tesla presented its quarterly figures yesterday. The US electric car maker earned more than a billion dollars in a quarter for the first time. The company of the multi-billionaire Elon Musk increased the surplus tenfold. Revenues grew by 98 percent to a total of twelve billion dollars. Tesla shares rose by around one percent in after-hours trading.
Euro stays above $ 1.18
The euro fluctuated around the US $ 1.18 mark in the run-up to the Fed meeting. In the evening, the common currency was quoted at 1.1832 US dollars. The European Central Bank (ECB) set the reference rate on Monday at $ 1.1787.
Amazon denies Bitcoin rumor
The rally in Bitcoin has stopped for the time being: The cyber currency temporarily slipped below the $ 37,000 mark. Amazon has denied a media report that the company wants to accept Bitcoin as a means of payment by the end of the year. Speculations on Amazon’s entry into the industry had caused the cyber motto to rise to more than $ 40,000 at the beginning of the week.
“The recent euphoria about Amazon’s possible entry into the industry has now given way to a more sober approach,” said analyst Timo Emden from Emden Research. “The recovery movement is thus on feet of clay.”
Allianz quantifies flood damage
The insurer Allianz expects damage of more than half a billion euros for its customers due to the flood disaster in Germany. Allianz Germany announced that around 13,000 damage reports had been received about the storm “Bernd”. “However, we expect that these numbers will increase significantly in the next few days,” said claims director Jochen Haug. The insurer is currently assuming more than 30,000 property damage and more than 5,000 vehicle damage. The expected damage volume of over 500 million euros only includes the damage in Germany. In addition, it has not yet been taken into account that Allianz has reinsured some of its risks with other companies.
Commerzbank downgraded
After a downgrade, the Commerzbank share is pretty weak. The analysts of Société Générale have recorded the title with “Sell” and a valuation of 5.00 euros.
Kion dares to do more
The forklift manufacturer Kion has raised its forecasts for the full year after a good first half of the year. The MDAX member now expects sales between 9.7 and 10.3 billion euros. So far, Kion had promised 9.15 to 9.75 billion. The adjusted operating profit should be between 810 and 890 million euros, after 720 to 800 million euros so far. Kion is also more optimistic than before with regard to incoming orders.
Jungheinrich recommended
Shares in forklift manufacturer Jungheinrich benefited from analyst praise. The medium-term prospects for the profit margin are appealing, wrote the Berenberg bank in its study. The upcoming quarterly figures should continue to show a strong sales and profit development. Berenberg raised the target price from 45 to 53 euros.
MorphoSys under pressure again
MorphoSys’s lower sales forecast yesterday continued to weigh heavily on the stock. To make matters worse, Commerzbank’s buy recommendation was canceled. The analyst in charge now sees a trust problem.
The wood boom is what drives Dürr
Dürr’s shares shot up by a good ten percent. The plant manufacturer Dürr is raising its forecasts in view of a record in incoming orders, especially in the wood processing machine business. The furniture industry is investing, and wooden houses are experiencing a boom, explained Dürr. Sales will rise to 3.6 to 3.8 billion euros in the current year. So far, the company had expected 150 million less. In the previous year, the MDAX-listed company had turned over € 3.3 billion.