market report
Status: 03/23/2022 07:23 a.m
The relaxation on the stock markets continued in the middle of the week. Good indications from Wall Street and the Asian stock exchanges should also ensure further plus signs in the DAX.
At 14,570 points and thus 0.7 percent higher than yesterday’s XETRA closing level, the leading German index will start trading according to pre-market signals. The positive trend of the past trading days is thus continuing again.
Difficult Ukraine negotiations
However, the situation in the Ukraine conflict remains extremely tense. In the evening, Ukrainian President Volodymyr Zelenskyy said of the negotiations with Russia on a way out of the war: “They are very difficult, sometimes scandalous, but we are moving forward step by step.” Negotiators from Ukraine are on duty every day, he said in a video speech distributed on Wednesday night.
Wall Street swings up
The conditions for the European stock markets are still favorable in the morning. US investors have apparently “priced in” a possible more aggressive interest rate policy by the US Federal Reserve. The Dow Jones index of standard values closed 0.7 percent higher at 34,807 points. The technology-heavy Nasdaq advanced about two percent to 14,108 points. The broad S&P 500 gained 1.1 percent to 4511 points. On Monday, Fed Chair Jerome Powell surprised investors by saying that he would not rule out interest rate hikes of half a percentage point in the coming months.
Banks, Nike and Tesla
Bank stocks in particular rose as a result. Following good business numbers, Nike shares were also among the winners. Tesla shares were also in demand, gaining almost eight percent. The electric car manufacturer opened its factory near Berlin and handed over the first vehicles “made in Germany” to customers.
Far East stock exchanges with clear profits
In Asia, some of the indices in the morning have reached their highest level in three weeks. In Tokyo, prices rose after the holiday break on Monday. The leading Japanese index Nikkei gained three percent to 28,040 points. Deutsche Bank’s market strategists pointed to the weakness of the yen against the dollar, which had a positive impact. The IT groups Tencent and Alibaba and the food supplier Meituan led the Hang Seng Tech Index with an increase of more than three percent.
Euros at 1.10
The prospect of faster rate hikes in the US is keeping the euro locked at its $1.10 level. In the morning, the common currency is trading at $1.1013. Oil prices remain at the level of the past few days. A barrel of North Sea Brent in the morning costs 114 dollars, little changed. The price for a troy ounce of gold is like yesterday at 1920 dollars.
Production slowed down at Mercedes-Benz
The lack of car parts because of the Ukraine war is slowing down production at the DAX group Mercedes-Benz. The company said in the evening that partial short-time work had been applied for at the Sindelfingen plant. The shift plan had to be adjusted. In part, the reduced need for workers can therefore be regulated using working time instruments. It remains unclear whether entire shifts will be eliminated and how many employees will be temporarily suspended.
Bayer issues bonds
The pharmaceutical and agrochemical group has placed new hybrid bonds worth EUR 1.3 billion. The issue consisted of two tranches and was aimed exclusively at institutional investors. Bayer wants to list the bonds on the Luxembourg Stock Exchange. Both tranches have a term of 60 years. The proceeds would be used for general corporate purposes, including to fund the repurchase of an existing bond callable on October 2, 2022.
Deutsche Euroshop in the profit zone
The Hamburg real estate investor, which specializes in shopping centers, achieved lower sales and operating profit in the past financial year than in the previous year. With a drop in sales of 5.5 percent to 211.8 million euros, earnings before interest and taxes fell by 5.4 percent to 152.5 million euros. Above all, thanks to significantly lower valuation losses, the bottom line was a net profit for the year of 59.9 million euros, after a consolidated loss of 251.7 million euros in the previous year. “The Management Board aims to return to a sustainable dividend policy,” the company said.
Total no longer buys Russian oil
French energy giant Total plans to stop buying Russian oil by the end of the year. The group announced yesterday that no new contracts should be concluded or existing ones extended. Total had previously announced that it would no longer buy Russian oil on the spot market, i.e. in the short term. The refinery in Leuna, Saxony-Anhalt, will also be affected by the step. An alternative will be created for this, it said from Total.