market report
Status: 02/14/2022 07:41 a.m
The new stock market week is all about the Ukraine crisis. Fears of war hit the DAX hard. Russia may be about to invade Ukraine.
The DAX is likely to start the trading day at a sharp discount. The broker IG assesses the German standard values at the hour 1.5 percent lower at 15,188 points. On Friday, the leading German index was able to limit its initially significant price losses to a drop of 0.4 percent to 15,425 points.
DAX bargain hunters despite Ukraine risk?
It remains to be seen whether the bargain hunters in the DAX will again dare to emerge during the course of the trading day. In any case, her courage was not rewarded in the end.
While in the past week it was mainly fears of inflation and interest rates that depressed prices on the stock exchanges, at the beginning of the new week the Ukraine risk is becoming more and more important to investors.
Biden warns of Russian invasion of Ukraine
In the past few days, the crisis surrounding the Russian troop deployment on the border with Ukraine has drastically worsened. On Friday, US President Joe Biden’s national security adviser, Jake Sullivan, openly warned of a Russian invasion of Ukraine before the end of this week.
The pithy words of the Russian ambassador to Sweden show that even in the face of drastic economic sanctions from the West, Russia could not shy away from such a step. Numerous Western countries have asked their citizens to leave Ukraine.
Interest rate fears: Dow and Nasdaq with losses
Markets have already been in turmoil since US inflation hit a 40-year high last week, prompting speculation that the US Federal Reserve could hike interest rates by a full 50 basis points in March. According to the Fed Watch Tool, more than half of the market participants are now expecting such a large rate hike in March.
The Dow Jones index closed 1.4 percent lower on Friday at 34,738 points. The tech-heavy Nasdaq fell 2.8 percent to 13,791 points. The broad S&P 500 lost 1.9 percent to 4418 points.
Nikkei rushes lower, dollar in demand
In Asia, too, fears of war pushed the stock markets deep into the red at the beginning of the week. The Nikkei index, which comprises 225 stocks, was 2.2 percent lower at 27,080 points at the close in Tokyo. The Shanghai stock exchange is currently down 0.6 percent.
In Asian foreign exchange trading, the “safe haven” dollar is in demand, while the euro loses 0.2 percent to $1.1347. An ounce of gold costs $1,854, down 0.3 percent from Friday.
Ploss is to become chief supervisor at Knorr- Bremse
The truck and train brake manufacturer Knorr-Bremse is to get a new supervisory board chairman in the form of the outgoing Infineon boss Reinhard Ploss. Knorr-Bremse announced that the control committee would propose the manager as a new member of the supervisory board at the annual general meeting on May 24.
No woman on the board – Deutz boss has to resign
After differences about how to deal with the requirements for more women on the board, the boss of the Cologne engine manufacturer Deutz has to vacate his post immediately. The Chairman of the Board of Management, Frank Hiller, has been unanimously dismissed from the Board of Management by the Supervisory Board, Deutz AG announced.
BioNTech/Pfizer for infants in US is delayed
The German company BioNTech and its US partner Pfizer want to update their application for emergency approval of their corona vaccine for children under five years of age, which was submitted to the FDA in early February, to include data on studies with a third dose. The FDA then said that a meeting originally planned for February 15 would now be postponed for the time being.
Novavax Announces Results of Vaccine Trial in Adolescents
The US vaccine manufacturer Novavax says it has successfully tested its vaccine against Covid-19 in young people between the ages of 12 and 17. According to the results of a phase 3 study, the effectiveness of the drug is 82 percent. However, the study was conducted at a time when the delta rather than the omicron variant was dominant.