Solid profits expected: Are investors taking advantage of the moment?

market report

Status: 04/26/2022 07:54 a.m

It looks like bargain hunters in the stock market are now taking the opportunity to stock up on stocks. The DAX should start trading with a strong premium

According to calculations by banks and brokers, the DAX should start trading much more firmly and regain the 14,100 point mark. Yesterday the index was 1.5 percent weaker at 13,924 points. The fear of a recession pulled not only the leading German index down, but also the other European stock exchanges.

“The question no longer seems to be whether, but only how severe a recession will be in Europe,” said investment strategist Jürgen Molnar from the brokerage house RoboMarkets.

Stock markets oversold?

But the stock market is above all a day-to-day business. What frightened market participants yesterday can already be pushed aside by other moods and information today. The reporting season could provide new positive impetus, says Ulrich Stephan, chief investment strategist for private and corporate customers at Deutsche Bank.

And it’s actually picking up speed more and more. Today, after the US stock market close, two US tech heavyweights, Microsoft and Alphabet, are reporting, whose figures could certainly set the direction for the stock markets. Around noon, major corporations such as Pepsico, UPS and General Electric will also be presenting their balance sheets.

And there is another factor that speaks for rising prices, the US bank JPMorgan is therefore even expecting a recovery rally over the course of the week: the stock markets are oversold and the general mood is bad, which investors can use for strategic purchases, wrote analyst Marko Kolanovic .

Conciliatory end of the day on Wall Street

In the USA, too, investors feared that the economic recovery would stall and initially threw shares out of their portfolios. But after wild ups and downs, Wall Street finally closed with gains: The Dow Jones closed 0.7 percent higher at 34,049 points. The tech-heavy Nasdaq advanced 1.3 percent to 13,004 points. The broad S&P 500 gained 0.6 percent to 4296 points.

Towards the end of trading, prices were boosted by the news that the richest man in the world and head of electric car manufacturer Tesla, Elon Musk, was buying the US short message service Twitter for $44 billion.

In Asian equity markets, buyers are already coming out of cover, inspired by the final Wall Street rally. The Nikkei was 0.5 percent higher at 26,727 points. The broader Topix index rose 0.2 percent to close at 1880 points. The Shanghai stock exchange was up 0.6 percent. The index of major companies in Shanghai and Shenzhen gained 1.1 percent.

Deutsche Börse is doing good business

The market turbulence of the past few months has boosted business at Deutsche Börse. Revenues rose by 24 percent to 1.06 billion euros in the first quarter. Uncertainty has increased among market participants and has led to a greater need for trading and hedging. The company attributed the uncertainty to the Ukraine war, rising commodity prices, the impact of the pandemic and disruptions in the supply chain. The bottom line was a profit of almost 421 million euros, which corresponds to an increase of 33 percent.

Vonovia expects new record year

Despite the economic consequences of the Russian invasion of Ukraine, the housing giant Vonovia sees itself on course to its annual targets. “From an economic point of view, we are expecting a new record year,” said Vonovia boss Rolf Buch in a previously published speech for the virtual general meeting on Friday. Vonovia is expecting growth of more than 20 percent for key indicators in the current year, he confirmed.

Vonovia recently took over its smaller rival Deutsche Wohnen. The integration of the acquisition is expected to be completed in early 2023.

GM announces electric version of the Corvette

The US car manufacturer General Motors (GM) is developing an electric version of the Chevrolet Corvette sports car. “We will be offering an electrified Corvette as early as next year,” the automaker said. However, petrol-powered versions will continue to be available. GM has announced that it wants to overtake the electric car pioneer Tesla in terms of sales of electric vehicles. The group wants to invest 35 billion dollars by 2025 for this.

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