Market report
As of: July 8th, 2021 9:50 a.m.
The German standard shares came under pressure shortly after Xetra trading began. The price losses on many Asian stock exchanges are having a particularly negative impact.
Shortly after the start of trading, the DAX slipped to 15,533 points, a decrease of one percent. Market analyst Thomas Altmann from QC Partners is concerned about the very different development of the stock markets around the world. “The broad-based equity rally is long over. While euphoria continues to prevail in the US, we can almost speak of depression in Asia.”
According to Altmann, Europe lies between America and Asia in terms of value development. “It’s as if the euphoria from the USA and the depression from Asia cancel each other out in Europe. The result is then a sideways market with no inspiration.”
The DAX has been running sideways in the range of 15,400 to 15,800 points without a clear direction since the end of May.
Waiting for the ECB
The euro fluctuated around the US $ 1.18 mark in the morning. Investors are eagerly awaiting the results of the ECB’s month-long strategy review and the new inflation target. Federal Reserve President Christine Lagarde wants to present the details in the afternoon.
Exports are increasing again
German companies increased their exports for the 13th month in a row in May. However, exports grew surprisingly slowly at 0.3 percent compared to the previous month, according to the Federal Statistical Office. Economists polled by Reuters had expected an increase of 0.6 percent, after an increase of 0.2 percent in April. Imports rose by 3.4 percent, a good eight times as much as expected.
Exchange rate losses in Asia
The Japanese stock market performed rather poorly today. The Nikkei index, which comprises 225 values, lost 0.7 percent to 28,172 points by the end of trading and was thus based on the overall weak development of many Asian stock markets. “The market sentiment has become a bit shaky,” said OCBC analyst Terence Wu. Apparently, investors weren’t in the mood to take big risks following a tech stock sell-off in Hong Kong and rising infection rates.
Stocks in demand in America
The US stock exchanges, however, posted more gains yesterday. The Dow Jones went 0.3 percent higher with 34,681 points from trading. The broad S&P 500 gained 0.3 percent to 4358 points. At the close of trading, the composite index of the technology exchange Nasdaq was slightly up at 14,665 points. S&P and Nasdaq each set new records.
The interest rate protocols published yesterday by the US Federal Reserve (Fed) provided tailwind. In view of the boom after the Corona crisis, a debate has started in the Fed about a future shutdown of economic aid. The monetary authorities consider it important, in the interests of “careful planning,” to position oneself well for this, as the minutes of the interest rate meeting in June show. According to market observers, it is becoming apparent that the central bank is in no hurry to scale back its bond-buying program.
The bond market responded positively to these statements. The US 10-year bond yield hit 1.32 percent, its lowest level since February. For comparison: the annual high in return was just under 1.78 percent.
A Fed official warns
Atlanta Fed President Raphael Bostic warns that a new surge in corona infections driven by the Delta variant could lead to consumer retreat and a slowdown in the economic recovery in the US. There are worrying trends in some parts of the country, says Bostic at a virtual event with journalists.
Teamviewer is losing momentum
The software provider Teamviewer is dampening expectations for the current year after a weak second quarter. For billings, a key figure for the invoiced sales for the next twelve months, and for sales themselves, only the lower end of the ranges previously forecast is expected, as the MDAX-listed group announced. Adjusted for currency effects, billings rose by 18 percent in the second quarter, which is less than expected.
Fielmann dares again
Fielmann benefited from fewer corona restrictions in the second quarter. With an increase in sales of almost 30 percent to 790 million euros, the pre-tax profit shot up according to initial calculations by around 150 percent to 95 million euros, as the optician chain announced. After the group has not dared to look ahead to the imponderables of the pandemic, it now dares to make a forecast for 2021: Group sales are expected to rise to around 1.7 (previous year: 1.4) billion euros and pre-tax profit to around 200 (previous year: 175.5) million.
The stock exchange celebrates Knorr-Bremse
Relief for Knorr-Bremse’s investors. The papers of the brake specialist, who recently came under considerable pressure, are climbing vigorously. The company no longer wants to take over the majority in the automotive supplier Hella. After a careful analysis, the possibilities of transferring key technologies and products to the company’s own range would be assessed as insufficient to realize the expected synergies, Knorr-Bremse announced. Only at the end of June did the management confirm a “fundamental interest in the possible acquisition of around 60 percent of the shares in Hella GmbH & Co. KGaA from members of the founding family”.
Novem gives details of the IPO
The automotive supplier Novem wants to go public. The manufacturer of trim parts for luxury cars from Vorbach in northern Bavaria wants to raise around 330 million euros with the issue. The company announced that up to 17.3 million shares in a range of 16.50 to 19.50 euros are to be sold to professional investors. Novem would have a market value of 710 to 830 million euros.
Google is being sued again
Google has to deal with another antitrust litigation in the United States. 36 states and the administrative district of Washington DC have filed a competition lawsuit against the subsidiary of the Alphabet group. However, the application was not initially available. According to the US media, the proceedings revolve around alleged antitrust violations in the business with apps for the so-called Play Store of Google’s smartphone operating system Android.