market report
Despite good guidance from Wall Street, the leading German index is initially unable to develop any new upward momentum. At the start of trading, the DAX remained below the 16,000 point mark.
At the start of trading on XETRA, the DAX is almost exactly at yesterday’s closing price level. The gap to the hurdle at 16,000 points currently remains at around half a percent at 15,930 points. Yesterday the index closed slightly in the red at 15,911 points.
The overseas stock exchanges provide the European markets with good templates for the trading day. The Dow Jones index gained 0.6 percent to 35,151 points in the evening. The technology-heavy Nasdaq 100 reached its highest level since the beginning of January 2022 and closed 1.2 percent higher at 16,027 points. The Japanese Nikkei index was able to maintain its gains from the previous trading days in the morning due to a stronger yen, but did not rise again.
In early trading, the European common currency was trading at $1.0954. The hope of a pause in key interest rate hikes in the USA continues to support the euro, although it is currently not enough to jump above the round $1.10 mark.
Oil prices fell slightly in early trading, breaking off their recent stabilization. In the morning, a barrel (159 liters) of North Sea Brent for delivery in January cost $81.73. On the last two trading days, prices had risen after having previously fallen on a trend for several weeks. The main reason for this was the increasing economic skepticism for the USA, China and Europe.
In the DAX tomorrow, the shares of Siemens Energy and Adidas can reach the top of the index. The biggest losers in early trading are the securities of Commerzbank and BMW.
Car titles do not currently benefit from current car sales figures. Demand for cars in the European Union continues to rise. In October, 855,484 cars were newly registered, 14.6 percent more than a year earlier, as the manufacturers’ association ACEA announced.
Market leader Volkswagen and its brands had a market share of around a quarter in the month. The rivals Stellantis (a good 18 percent) and Renault (a good eleven percent) were behind. BMW recorded a market share of almost seven percent, Mercedes-Benz just under six percent.
Bayer shares can only recover slightly this morning from yesterday’s price drop of 18 percent. A number of analysts have commented on the setback at pharmaceutical hopeful Asundexian. The US analysis house Bernstein Research has left Bayer’s rating at “Outperform” with a price target of 60 euros. In contrast, the experts at Bayer have downgraded from “Buy” to “Hold” and lowered the price target from 60 to 37 euros. The stop to Asundexian’s most important test series now makes divestitures necessary, says analyst Charlie Bentley.
Shares of the chemical company Evonik in the MDAX fell by around three percent. Evonik’s major shareholder RAG-Stiftung is replacing its convertible bonds on shares in the chemical company that are due to expire next year with longer-term securities. The foundation, which holds 53 percent of Evonik, announced that it would issue new exchangeable bonds with a volume of 500 million euros that run until 2030. In return, the bonds expiring at the beginning of October 2024, of which 450 million euros are still in circulation, are to be bought back at 97 percent of their nominal value.
The Belgian investor Groupe Bruxelles Lambert (GBL) has sold almost its entire package of shares in the plant manufacturer GEA, thereby raising 367 million euros. The GBL subsidiary Oliver Capital placed 11.25 million GEA shares with institutional investors at a price of 32.63 euros each, as GBL announced. That’s a discount of 6.5 percent to Monday’s closing price. Behind GBL are the entrepreneurial families Frère from Belgium and Desmarais from Canada. Billionaire Albert Frère, who died in 2018, often pursued activist strategies with his investments.
At the biotech company Morphosys from the TecDAX, the biggest drug hope, pelabresib, achieved its goals in the crucial study. The Phase 3 study, testing the drug for the treatment of myelofibrosis – a rare malignant bone marrow disease – showed a statistically significant improvement in spleen volume reduction and strong positive trend in symptom reduction, the company said. MorphoSys plans to submit regulatory applications in the USA and Europe in mid-2024. The company expects the product to generate billions in sales.
The takeover offer from the major shipping company MSC to shareholders of the Hamburg port logistics company HHLA has ended. The city of Hamburg and the world’s largest liner shipping company want to run HHLA as a joint venture in which MSC will hold a maximum of 49.9 percent. Hamburg currently holds around 69 percent of HHLA. MSC offers 16.75 euros per HHLA share. However, an extension of the offer is possible. By midday on Monday, almost 3.9 percent of HHLA shares had been tendered to MSC. The city of Hamburg and MSC now have a share of around 84.21 percent of the company’s share capital and voting rights.
The financial investor Permira continues to sell shares in the software provider Teamviewer. The placement of 13 million shares will reduce the share from almost 21 percent to around 14 percent, according to the Bloomberg news agency. The papers are offered for 13.90 euros each, around seven percent below the Xetra closing price on Monday. If the shares were sold for that price, the financial investor would earn another around 180 million euros. Permira had already raised 5.4 billion euros through the IPO and sale of shares in the following years.
Elon Musk’s online platform X has sued the authors of a critical report that scared away major advertisers such as IBM, Apple and Disney last week. The Twitter successor accuses the organization Media Matters for America of using targeted manipulation to ensure that advertisements from well-known companies appeared alongside Nazi posts and anti-Semitic statements. Media Matters boss Angelo Carusone responded that his organization continues to stand by the report and looks forward to winning in court.