Market report
As of: 08/09/2021 9:57 a.m.
After the unsuccessful record attempt on Friday, the DAX bulls do not want to give in at first. The leading German index starts with gentle gains. But the record high remains a tough nut to crack.
At the start of trading, the DAX was 0.1 percent higher at 15,774 points. The German standard values initially remain within striking distance of their record high, which was just missed last Friday. The technical prospects had recently clouded over.
The DAX chart has a so-called double top, consisting of the high from Friday (15,808) and the record high from July 14 (15,811 points). In the past, such a construction was often a harbinger of price losses, as it shows that the upward forces threaten to flag precisely at this point.
In fact, in early trading, the DAX initially turned back down at the 15,800 point mark and even slipped into the red. This breakout attempt must therefore also be regarded as a failure.
Strong export data – still
Meanwhile, fresh economic data has given the leading German index a tailwind. Germany’s exports continued to grow in June and were above the level before the outbreak of the corona pandemic for the first time. They climbed by 1.3 percent compared to May and by 23.6 percent compared to June 2020, as the Federal Statistical Office in Wiesbaden announced on Monday. Imports also returned to pre-crisis levels.
“Since industrial production is still stalling, it is to be feared that the shortage of preliminary products will soon be reflected more clearly in the export figures,” says VP Bank analyst Thomas Gitzel.
Dow and S&P 500 set new records
With its unsuccessful record attempt, the DAX is once again lagging behind Wall Street. On Friday, both the US standard value index Dow Jones and the S&P 500, which tracks the broader market, set new highs. Surprisingly strong US labor market data attracted more investors to Wall Street, financial stocks in particular were in demand.
The Dow Jones closed 0.4 percent higher to a record high of 35,209 points. The S&P 500 gained 0.2 percent and also set a new record with 4436 points.
What is the Fed doing?
In contrast, the technology-heavy Nasdaq crumbled by 0.4 percent and came to 14,835 points. The US Federal Reserve (Fed) makes tightening its monetary policy dependent above all on improvements in the labor market.
Above all, the surprisingly strong increase in hourly wages due to the acute labor shortage could now prompt the central bankers to step up monetary policy. If interest rates rise, the high-growth technology companies will feel this particularly as their growth financing will then become more expensive.
Price gains in China, Tokyo closed
The bottom line, however, positive targets from Wall Street ensure further price gains in Asia. Despite tightened measures to contain the delta variant of the coronavirus in China, the Shanghai Composite Index rose by 1.1 percent, the Hang Seng in Hong Kong gained 0.2 percent. The stock exchanges in Japan and Singapore are closed today due to a public holiday.
More negative indications for share trading come from fresh Chinese economic data, according to which the recovery of the world’s second largest economy is showing its first weaknesses: Although exports rose by 19.3 percent to $ 282.66 billion in July compared to the same period of the previous year, they fell as a result significantly weaker than expected by experts.
Gold sell-out
Investors in the foreign exchange markets had covered themselves on Friday in anticipation of an early tightening of monetary policy with the world’s reserve currency, the dollar. At the beginning of the week, the euro dares a small countermovement after the losses on Friday and is trading a little higher at $ 1.1759.
Gold has also lost its luster with the labor market data for investors. The yellow precious metal was trading at $ 1,739 a troy ounce on Monday morning. In early electronic futures trading, the price of gold had temporarily slipped to $ 1,680, its lowest level in four months. It appears that some large investors have cashed in here given the strength of the dollar.
Oil prices remain under massive pressure
The strong dollar continues to weigh on oil prices, which at the beginning of the week are picking up on their heavy losses on Friday. The price of a barrel (159 liters) of North Sea Brent fell 2.9 percent to $ 68.92. A barrel of the US WTI variety costs $ 66.46, 3.3 percent less.
A rising dollar makes crude oil traded in dollars more expensive in countries outside the dollar area, which is reflected in lower demand for the raw material.
DHL ends delivery drone project
In the DAX, the Deutsche Post share comes into focus in the morning. The group subsidiary DHL discontinues its parcel drone development project “Parcelcopter”. “We are not continuing the package copter project,” said a DHL spokesman for “Welt am Sonntag”. The drone was originally intended to deliver and remove parcels in mountain regions, for example.
Infineon relies on AR glasses with a new chipset
Infineon wants to establish itself in the promising computer glasses business with a new chipset. The technology presented today is characterized by small dimensions, low weight and low power consumption. Augmented reality glasses, in which additional information can be displayed for the wearer, are considered to be a potentially large future market.
VW boss sees great job potential in the auto industry
Despite all the difficulties in converting work processes and qualifications, VW CEO Herbert Diess sees great job potential in the automotive industry. “In order to build a lot of cars, you will still need a lot of people in production in 2030. And many of them will do very similar jobs as they do today,” Diess told the news agency dpa.
Vaccine manufacturer BioNTech presents quarterly figures
In the further course of trading, BioNTech should move into the focus of investors. At 1 p.m., the Mainz-based company, which is listed on the New York technology exchange Nasdaq, will present its figures for the second quarter. In the first three months of the year, the company co-founded by Ugur Sahin had a profit of 1.1 billion euros – an increase of around 200 percent compared to the same quarter of the previous year.
Carlyle wants to take over Schaltbau
The Munich-based rail technology specialist is to be sold to US financial investor Carlyle for around 700 million euros. Carlyle is offering 53.50 euros per Schaltbau share and has already secured 69 percent of the shares, as both companies announced. The offer is 32 percent above the closing price of the Schaltbau share on Friday.
Oil giant Saudi Aramco quadruples profits
The oil company Saudi Aramco has almost quadrupled its quarterly profit in the wake of the global economic recovery and rising oil prices. The Saudi industry giant reported a surplus of $ 25.5 billion for the second quarter of 2021 on Sunday. In the second quarter of 2020, the group had a profit of just $ 6.6 billion.
Warren Buffett back on the winning track
The recovery from the Corona crisis has helped US star investor Warren Buffett’s investment company to make significantly more profits. Berkshire Hathaway’s operating income rose 21 percent to $ 6.7 billion in the second quarter. The conglomerate also invested about $ 6.0 billion in buying back its own shares.