market report
Status: 06/21/2022 07:44 a.m
The DAX should start trading with gains today. However, investors shouldn’t count on a sustained price recovery – the problems on the financial markets are too serious.
Experts expect that the DAX will start the trading day with an increase of 0.4 percent to 13,322 points. The leading German index closed yesterday with a premium of 1.1 percent to 13,265.60 points.
However, experts are only assuming a recovery in an existing downward trend: “The tightening of monetary policy and concerns about slower growth or a recession continue to reduce investors’ appetite for riskier forms of investment,” said market observer Pierre Veyret from broker ActivTrades.
“Toxic Mixture”
“The mixture of high inflation and rising interest rates that has prevailed for weeks, the clouded perspective as a result, as well as the political risks and the still existing aftermath of the pandemic, is toxic for the players on the stock markets,” write the Helaba experts in their daily comment.
At the end of last week, the DAX had just barely defended the 13,000 point mark after losing more than ten percent from its monthly high of 14,709 points.
In the USA there was no trading yesterday due to a holiday, so support from the “world’s leading stock exchange” can only be expected today. Accordingly, investors should be excited about developments on Wall Street. However, US futures are pointing to rising prices, which should support the stock exchanges in Europe and Asia.
Asia on the rise
In Asia, stock markets are actually picking up again after the recent sell-off: “I think the positive picture we’re seeing this morning isn’t necessarily due to people moving back towards risky assets,” said analyst Kerry Craig of JPMorgan. “It’s just normal behavior after the very big sell-off to get some breather because fundamentally nothing has changed on the macro front over the past week.”
The Nikkei index, which comprises 225 values, was 1.8 percent higher at 26,225 points. The broader Topix index rose 1.7 percent to 1849 points. The Shanghai stock exchange was down 0.4 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.4 percent.
Drop in sales at Nordex
The Hamburg-based wind turbine manufacturer Nordex has had to switch production to other blades and fewer installations. In the first quarter, sales fell by a quarter to 933 million euros, as the company announced late on Tuesday. Due to a hacker attack, Nordex was unable to present its quarterly figures on time in May and therefore temporarily lost its place in the SDAX small-caps index. “The start of 2022 was difficult and certainly went differently than everyone expected,” said company boss José Luis Blanco.
Jetblue increases offer for US low-cost airline Spirit
US airline Jetblue is improving its takeover bid for competitor Spirit to outperform rival Frontier. Overall, Spirit shareholders are now to receive $33.50 per share, two dollars more than previously offered, as Jetblue announced. As with the already improved offer from early June, 1.50 dollars should already flow as soon as the Spirit shareholders agree to the takeover. In addition, Jetblue announced further measures to convince the antitrust authorities.
Qantas is removing the mask requirement on some flights
The Australian airline Qantas has abolished the mask requirement on some international routes. Both the crew and the passengers no longer have to wear mouth and nose protection on flights from New South Wales, Queensland and Western Australia to the USA, Great Britain and Rome, Australian media quoted from an internal letter from the company.
The broadcaster 9News quoted the document as saying that lifting the obligation to wear masks on board aircraft introduced in the course of the corona pandemic is the “appropriate next step” because global studies have shown that the risk of transmission in the cabin is very low.
Berlin travel platform Omio raises 80 million dollars
The Berlin travel platform Omio is raising a new round of financing despite the poorer market conditions caused by the interest rate turnaround, economic slowdown and the downturn in listed technology stocks. The startup, which was founded in 2013, announced that 80 million dollars had been collected from investors.
According to insiders, Omio’s valuation is stagnating at the almost one billion dollars achieved before the Corona crisis, which means that the company is considered a unicorn in investment banker jargon. Trains, flights, ferries and buses in Europe, the USA and Canada can be compared and booked via Omio.