Market report
Status: 06.07.2021 6:51 p.m.
Dark clouds are gathering in the hitherto serene sky on the stock exchange. The rising oil prices are fueling inflation worries again. The DAX fell to its lowest level in two weeks.
The “stock market summer” remains changeable: After the good start in July, the mood is now clouding over again. The DAX ended the trading day with a clear minus of one percent and was only able to hold out at just over 15,500 points. The record high of over 15,800 counters is getting more and more out of sight.
Oil prices rise after OPEC + talks are broken
The ongoing oil price rally is burdening Europe’s stock exchanges because the export industry is suffering from the more expensive “black gold”. The broken talks by Opec + drove the price of Brent crude oil from the North Sea by 0.9 percent to $ 77.84 per barrel (159 liters), the highest level in almost three years. The US variety WTI even gained up to 2.4 percent and, at $ 76.98, was as expensive as it was last in November 2014. “It would not be surprising if Brent approaches the $ 100 mark,” say first experts.
“Dark clouds in the summer stock exchange sky”
Market watcher Milan Cutkovic warns of “dark clouds gathering on the stock exchange sky, which is still summery”. If oil prices rise rapidly within a short period of time, concerns about inflation should come to the fore again and weigh on stock market sentiment. The European inflation barometer, the so-called five-year-five-year-forward, rose to a two-and-a-half-year high today.
Into technology stocks, out of standard stocks
Investors are switching from cyclical, economically sensitive stocks back to technology stocks. This can be seen especially on Wall Street. The standard stocks index, the Dow Jones, fell by 0.7 percent in the first two hours of trading, while the S&P 500, which contains significantly more tech stocks, climbed to a new record high. The Nasdaq has also set new records after the long weekend.
Weak economic data from the USA …
New economic data disappointed. According to the company survey published by the Institute for Supply Management (ISM), US service providers slowed their growth rate in June more significantly than expected. The relevant purchasing manager index fell from 64.0 points to 60.1 points after the record in May. This is the lowest level since February.
… and Germany
German industry received significantly fewer orders in May than a month earlier. The number of orders had fallen by 3.7 percent compared to April, announced the Federal Statistical Office. Analysts, on the other hand, had expected an average growth of 0.9 percent.
ZEW index is clouding over
In addition, ZEW economic expectations have surprisingly clouded over. The mood barometer of the experts at ZEW fell by 16.5 points compared to the previous month to 63.3 points, as the Center for European Economic Research (ZEW) announced. Analysts had expected a drop to 75.2 points.
The euro falls, gold rises
The euro lost ground on the foreign exchange market. In the afternoon, the European common currency cost 1.1831 US dollars. In the morning the euro had risen to a daily high of 1.1895 dollars. What was in demand, however, was gold. The yellow precious metal rose 0.7 percent to $ 1804 per troy ounce (31.1 grams).
Auto stocks weak
Investors cashed in especially in auto stocks. The papers of Continental, Daimler and BMW were among the biggest losers in the DAX today. At the Daimler subsidiary Mercedes-Benz, the production downtime caused by bottlenecks in semiconductors hampered the recovery of sales from the corona crisis in the second quarter. Despite robust global demand and high incoming orders, sales were significantly limited by global delivery bottlenecks, especially in June, the carmaker explained. Nevertheless, the brand with the star delivered 581,201 units worldwide from April to June, 27 percent more than in the same quarter of the previous year.
Yesterday the Association of the Automotive Industry (VDA) again lowered its annual forecast for car production to 3.6 million vehicles.
BioNTech works less well against Delta
There is worrying news about the corona pandemic. According to Israeli researchers, the vaccine developed jointly by BioNTech and Pfizer does not work as well against the Delta variant as initially thought. The Ministry of Health in Israel says the vaccine is still considerably effective in avoiding severe symptoms or hospitalization after a coronavirus infection. However, the vaccine has become less effective in preventing infection. BioNTech shares fall five percent.
Sartorius wants to grow even faster
Sartorius shares are doing well in the MDAX. After good business in the first six months, the laboratory service provider and pharmaceutical supplier is becoming more confident for the year as a whole. In 2021, currency-adjusted sales are now expected to increase by around 45 percent instead of around 35 percent, as the MDAX company surprisingly announced. The adjusted operating result is also expected to be higher than previously thought.
Pharmacy shop is losing momentum
In contrast, the shares of the shop pharmacy collapse by more than twelve percent. In the first half of the year, the online drug retailer improved its sales year-on-year by 15 percent to 534 million euros. However, looking at the second quarter, it was only a 7.3 percent increase in sales to 250 million euros. According to the company, a tense labor market and the move to the new location in Sevenum are currently temporarily reducing logistics capacity. The growth slowed down temporarily in the second quarter, it said. The management confirmed the annual targets, but now described them as challenging.
Nordex brings in more orders
The wind turbine manufacturer Nordex landed significantly more orders in the second quarter than in the previous year. The MDAX Group announced that Nordex had completed an order intake of 1,534 megawatts after 888 megawatts in the previous year. This adds up to incoming orders in the projects division in the first half of 2021 to a volume of 2,781.6 megawatts. Services are not included in this.
Flatexdegiro graduated
The private bank Hauck & Aufhäuser has downgraded Flatexdegiro from “Buy” to “Hold” and left the price target at 122 euros. The market momentum for providers of financial technology such as the online broker is weakening, wrote analyst Frederik Jarchow in a study available today. With the end of the lockdowns, people would obviously have other thoughts again. Despite the short-term slowdown, the long-term prospects remained good.
S&T is on track
Thanks to a high number of incoming orders, the Austrian IT service provider S&T sees itself on course for its annual targets. The company, which is listed in the SDAX, expects sales of at least 1.4 billion euros and earnings before interest, taxes, depreciation and amortization (Ebitda) of at least 140 million euros for the current year. In the second quarter, incoming orders significantly exceeded sales for the same period, S&T announced.