market report
Status: 03/21/2022 07:47 a.m
At the beginning of the week, disillusionment was spreading in the markets given the ongoing acts of war in Ukraine. The recent price rally in the DAX threatens to turn out to be a flash in the pan.
The DAX is likely to start the new week with price losses. The broker IG assesses the 40 German standard values at the hour 0.6 percent lower at 14,321 points. The leading German index should thus move further away from its previous week high of 14,553 points.
On the downside, the Friday low of 14,110 points is now the next port of call for the DAX bears. If the German stock market barometer also slips below that, there is a risk that the downward momentum will accelerate. On the upside, only a jump above the previous week’s high would give the German standard values new impetus.
Too much optimism in the DAX courses?
Doubts about the sustainability of the recent price rally are increasing on the market. The DAX had gained more than 2100 points within less than two weeks. Much optimism was reflected in that performance – optimism that is now being severely tested by the ongoing hostilities in Ukraine.
Investors remain nervous. Investors are also wondering if Russia will make more interest rate payments this week. The country has $615 million in coupons to pay this month and a $2 billion bond due on April 4th.
Reluctance on Asian stock exchanges
A sober mood prevailed on the Asian stock exchanges in the morning. Investors also worried about dependence on Russian energy supplies. “Prolonged disruption to Russia’s energy supplies would significantly push up inflation and add to already severe pressures on US consumers’ purchasing power,” warned Bruce Kasman, chief economist at JPMorgan. He added that this would likely plunge the euro zone into recession.
The Shanghai stock exchange was up 0.1 percent. The index of the most important companies in Shanghai and Shenzhen stagnated. The Japanese Stock Exchange was closed today for a holiday.
Bargain hunting on the Nasdaq
Positive signals for stock trading in Europe come from Wall Street. All three US indices closed in positive territory on Friday. Above all, tech stocks were in demand. The Dow Jones index of standard values closed 0.8 percent higher at 34,754 points. The tech-heavy Nasdaq advanced 2.1 percent to 13,893 points. The broad S&P 500 gained 1.2 percent to 4463 points.
“The bottom seems to be in, the tech sector is down so much from its highs that it’s bound to attract people looking for opportunities,” said strategist Rick Meckler of Cherry Lane Investments.
Oil prices continue to rise
However, the rising oil price is worrying investors. A barrel of North Sea Brent will cost $111.44 in the morning, up 3.3 percent on Friday’s closing price. The price for the US variety WTI rises by a similar amount, by 3.4 percent to $108.27 per barrel (159 liters).
The euro eased slightly this morning to $1.1036. An ounce of gold costs $1,924.
Daimler Truck and Hannover Re in the DAX
Today Daimler Truck takes off in the DAX. After the truck manufacturer, which was spun off from the former Daimler group in December, was included in the MDAX in February, it was promoted to the first stock exchange league at the beginning of the week. As of today, the shares of the insurer Hannover Re are also listed in the DAX. Beiersdorf and Siemens Energy have to make way.
RTL, Sixt and Siltronic new in the MDAX
The media group RTL, the car rental company Sixt and the wafer manufacturer Siltronic are all climbing up the MDAX. The special software provider Compugroup, Hella, which belongs to the car supplier Faurecia, and the car dealer Auto1 have to make room for this. The IT service provider Adesso is new to the DAX family and is moving into the SDAX, displacing the online fashion retailer Global Fashion Group.
CFO Mucic says goodbye to SAP
Europe’s largest software manufacturer SAP has to look for a new CFO. The previous CFO Luka Mucic will leave the company at the end of March 2023, the DAX group announced. Both sides had mutually agreed on this. Until then, Mucic will continue to work in full.
Porsche SE wants to pay out more dividends to shareholders
The major VW shareholder Porsche SE wants to pay its shareholders more dividends for the past year. According to the DAX company, a dividend of EUR 2.56 per preferred share is to be paid out for the past financial year, after EUR 2.21 for 2020. Common stock holders are to receive EUR 2.554 for each certificate held.
No Obstacles to Tesla Factory Launch
According to the Brandenburg state government, Tesla’s electric car factory in Grünheide near Berlin can start as planned on Tuesday. “Currently, we have no knowledge that would prevent it from being put into operation,” said the spokeswoman for the Ministry of the Environment, Frauke Zelt, on Saturday.
Oil company Saudi Aramco doubles profit
Oil company Saudi Aramco more than doubled its profits last year thanks to the strong recovery in oil prices. The surplus rose to $110 billion in 2021 from $49 billion a year earlier, the Saudi industry giant announced on Sunday. According to data from the Bloomberg news agency, Saudi Arabia holds around 94 percent of the shares in Saudi Aramco.