Status: 16.09.2021 12:22 p.m.
The uncertainty about the course of the central banks as well as alarming reports from China cannot prevent DAX investors from taking action again. In the afternoon, new impulses will come from the USA.
The DAX can largely hold its morning gains and is hovering around the last competitive mark of 15,700 points, 0.5 percent or 80 points higher than yesterday. In the morning, the leading index even climbed to 15,728 points, after closing 0.7 percent lower yesterday.
The reason for the change in mood was better than expected economic data from the US state of New York, which brought Wall Street back to life and made prices climb again. In fact, the Empire State Index rose by 16 points to 34.3 points compared to the previous month, while analysts had expected a slight decline to 17.9 points. According to experts, there is still no reason to give the all-clear. The Chinese real estate developer Evergrande, threatened by bankruptcy, the disappointing economic data from China and concerns about a turnaround in monetary policy in the USA and Europe continue to weigh on the financial markets. Experts emphasize that large price gains and a move away from the sideways position that has persisted for days are therefore not to be expected.
DIW lowers growth forecast
The risk of an only moderate economic recovery from the pandemic has not yet been averted, at least in Germany. The German Institute for Economic Research (DIW) has even drastically lowered its economic forecast for this year due to the stagnating production in industry. The Berlin researchers expect the gross domestic product (GDP) to increase by only 2.1 percent this year. In June they had expected an increase of 3.2 percent.
Nevertheless, many investors are relieved that the DAX has recovered somewhat. Because if it fell consistently below the 15,600 point mark, that would be a signal for further losses from a technical chart point of view.
In the afternoon there are again economic data from the USA on the agenda. This time it’s the retail sales at 2:30 p.m. Private consumption is considered to be the mainstay of the world’s largest economy. Investors are trying to read from these numbers when the US Federal Reserve will tighten the reins of monetary policy. The Federal Reserve will discuss its policy on September 22nd.
The euro weakened further in the morning and slipped below the $ 1.18 mark. The European Central Bank set the reference rate yesterday at $ 1.1824. The dollar visibly gained against many currencies in the morning and thus also put the euro under pressure. A clear reason for this was initially not apparent. Market-moving economic data or news were not known. The generally friendly market sentiment spoke more against than for the world reserve currency, the dollar.
Thyssenkrupp is continuing the restructuring of the group with the sale of its stainless steel plant in Terni, Italy. The buyer is the Italian company Arvedi, as announced by Thyssenkrupp. Arvedi will take over the entire AST group with around 2,700 employees. AST achieved sales of around 1.7 billion euros in the 2019/20 financial year. The sale should be completed in the first half of 2022, and the parties have agreed not to disclose the purchase price. The Thyssenkrupp supervisory board and the antitrust authorities would still have to approve. Thyssenkrupp described the sale as a further milestone in the realignment of the group.
The drive technology manufacturer Vitesco, spun off from Continental, is valued at 2.4 billion euros on its stock market debut. The first price for the shares of the Regensburg company was determined today on the Frankfurt Stock Exchange at 59.80 euros. Conti had distributed a good 40 million Vitesco shares to its own shareholders, one for every five Conti shares. At the same time, the Conti share fell by twelve percent to EUR 99.63. For the shareholders – above all the Franconian entrepreneurial family Schaeffler – the spin-off was not worthwhile for the time being. Five Continental and one Vitesco shares are worth 1.3 percent less than five Conti shares cost on Wednesday evening.
The streaming service Netflix wants to invest half a billion euros in German-language titles from Germany, Austria and Switzerland by 2023. The company announced this yesterday in Berlin, where the streaming service opened an office for the three countries in the presence of Netflix green Reed Hastings. The 500 million euros are to flow into 80 local series, films and shows. According to the company, the aim of the new location is to network even more closely with local filmmakers in German-speaking countries. In addition, cooperation with local production partners should be strengthened.
According to their association VDMA, the German mechanical engineering companies will leave the corona crisis well behind them in the coming year. For 2022, chief economist Ralph Wiechers expects a five percent increase in production adjusted for price increases, as the association announced today in Frankfurt. In the current year, according to the forecast that has been confirmed again, companies will even produce around ten percent more than in the crisis year 2020, but will not yet be able to fully compensate for the previous slump of 11.8 percent. According to its own assessment, the export-oriented industry could grow even faster with its well-filled order books, but is now struggling across the board with material and delivery bottlenecks.
The running shoe manufacturer On Holding got off to a brilliant start on the New York Stock Exchange. The shares of the Swiss company climbed yesterday at the start of trading by around 48 percent to 35.4 dollars. Overall, the stock exchange values the company, in which tennis star Roger Federer has a stake, at around $ 11.4 billion. Previously, the Zurich-based company had placed 31.1 million Class A shares at $ 24, which was more expensive than planned. Originally, an issue price of 18 to 20 dollars was targeted.