Status: 07.09.2021 07:49 a.m.
It currently looks as if the DAX will not defend the significant price gains of the previous day. Strong economic data from China should actually provide a sufficient boost.
Banks and brokers expect the DAX to fall back below the 15,900 point mark when trading starts. Positive signals from China do not seem to induce investors to buy shares: Chinese exports grew faster in August than economists expected and climbed 25.6 percent compared to the same month last year. Imports also exceeded analysts’ expectations and rose by 33.1 percent.
Recently there had been some weak Chinese economic data that had depressed sentiment in the financial markets. Market analyst Jeffrey Halley from broker Oanda said that the latest growth concerns have now been subdued.
No US requirements
The DAX had risen by one percent to 15,932 points on Monday. Across Europe, investors mainly stocked up on technology stocks. The corresponding sector index of the European stock market climbed 1.6 percent to a 20-year high. The prospect of a continued ultra-loose monetary policy by the US Federal Reserve attracted European investors to the stock market.
Yesterday, however, trading volumes remained thin as Wall Street was closed due to a public holiday. Without the impulses and guidelines of the world’s leading stock exchange, many traders prefer to hold back with greater exposure to the stock market. Therefore, the meaningfulness of the price movement is at least somewhat uncertain.
Also because of the ECB interest rate meeting on Thursday, it would be possible for investors to take a step backwards. “The meeting could be interesting in view of the rapidly rising inflation and the simultaneous faltering economic recovery,” predicts Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.
He does not yet expect monetary policy to be tightened in the euro area. The expert believes that the signs that bond purchases are about to slow down could increase. The loose monetary policy of the central banks has been a key price driver on the stock market for years.
But even today there are interesting economic data coming up. Production data from German industry is expected in the morning. In the morning, the Mannheim institute ZEW follows with its monthly economic barometer. In view of the more unfavorable Corona situation, a clouding over is expected. Against this background, the euro remains on hold. The common currency currently costs 1.1875 US dollars, roughly the same as the night before.
Price gains in Asia
In contrast to the reluctant investors in this country, the Asian markets continue to venture out of cover. The Nikkei index, which comprises 225 values, was 0.8 percent higher at 29,895 points. The broader Topix index rose 1 percent and stood at 2061 points. The Shanghai stock exchange was 0.7 percent up. The index of the most important companies in Shanghai and Shenzen gained 0.1 percent.
Deutsche Telekom sells its Netherlands subsidiary T-Mobile Netherlands and uses the proceeds to increase its stake in the US mobile operator T-Mobile US. The business held together with Tele2 will be sold to a consortium of financial investors. Upon completion of the transaction, Deutsche Telekom will receive around 3.8 billion euros. Telekom intends to use part of the proceeds to buy 20 million shares in T-Mobile US.
At the same time, the Bonn-based company announced that it would issue 225 million new treasury shares to the Japanese technology investor SoftBank with a valuation of 20 euros per share and in return receive around 45 million T-Mobile US shares at an average price of 118 dollars per share.
According to insiders, Allianz is now also dealing with the German financial regulator BaFin because of a dispute over US hedge funds, as several people familiar with the matter told Reuters. In the USA, the largest European insurance group already has the SEC and the Justice Department in-house.
The background to the investigation is a conflict between the asset management subsidiary Allianz Global Investors (AllianzGI) and US investors in several hedge funds. AllianzGI funds had suffered losses when the markets went to their knees in the first corona shock. Pension funds and other investors are therefore suing Allianz and claiming losses of up to six billion dollars. Allianz’s board of directors warned in early August that matters related to the funds could have a material impact on future financial results.