Dusseldorf The German stock market apparently wants to start the weekend with price gains. Listed in morning trading the Dax three percent in plus at 10,613 points. All 30 values are in the plus.
The topic on the stock exchange: A drug from the US pharmaceutical company Gilead Science reports success in treating Covid 19 patients, according to a media report.
The shares of the pharmaceutical company have already increased by 16 percent in after-hours trading in the US. Paper is also clearly on the German market. The share gains almost 20 percent on the Xetra trading platform.
In a study by the University Clinic in Chicago, remdesivir, which was originally developed against Ebola, led to a rapid reduction in fever and a reduction in the symptoms of the lung disease, so that almost all patients could be discharged in less than a week.
Gilead said the data still had to be analyzed to draw conclusions. The pharmaceutical company expects to be able to announce the first results from the ongoing phase 3 study at the end of the month.
It also has the White House presented clear criteria for exiting the corona restrictions. Such a concept would also be good for Germany, comments Handelsblatt author Christian Rickens.
In contrast, the figures from China stand. Because the economic growth there is in the first quarter shrunk by 6.8 percent compared to the same period in the previous year. For the first time since the official announcement of the quarterly figures in 1992, negative growth in China. The decline is even worse than expected by observers who had forecast 6.5 percent.
But this number is a lagging indicatorwhile stock marketers look ahead. And the future looks different: In the meantime, China has lifted travel restrictions again, and the economic recovery is ongoing. So China will soon be the growth engine of the global economy again? Probably not, says Handelsblatt correspondent Dana Heide.
The domestic Chinese service sector needs more time to recover and foreign demand has already weakened due to the global lockdown.
“A strong and rapid recovery, as in previous crises, is therefore difficult to imagine,” says Commerzbank– Analyst Hao Zhou. This suggests that the stock markets could soon go down again.
Today is Friday’s little expiry date. Options on stocks and indices reach their end date and are settled. In contrast to the big expiry day, called the Witches’ Sabbath, options on the Eurex futures exchange for professional investors are not affected. Accordingly, the small expiry date has less impact on the stock market prices than the large counterpart.
The overseas guidelines are positive: yesterday in New York, the stock markets closed in positive territory. The Nasdaq 100 selection index, which includes the large technology companies, made up for the losses in 2020. The US futures contracts signal an opening of three percent on the stock exchanges. The Tokyo stock exchange rose to its highest level in five weeks.
Look at the individual values
MTU: The engine manufacturer’s share tops the Dax list of winners with a plus of around six percent. The occasion is the announcement of Boeing after US market closes to resume commercial aircraft production at a plant near Seattle next week. The MTU-However, papers have a lot of catching up to do: A 56 percent drop has been recorded since the beginning of the year.
Look at other asset classes
Hope for a rapid recovery in the global economy from the aftermath of the coronavirus pandemic makes the “crisis currency” gold less attractive for investors. The precious metal fell 1.3 percent to $ 1,696.97 a troy ounce.
The Turkish lira is apparently in a dangerous devaluation vortex. Against the dollar, the currency is approaching the $ 7 mark, currently $ 6.94. The record high dates from the times of the currency crisis in mid-2018 and is $ 7.14.
What makes the situation so dangerous: According to Commerzbank, the foreign exchange reserves of the Turkish Central Bank (CBT) have fallen to a low of $ 27 billion net (excluding the foreign exchange of the reserve ratio of the banks). To extend existing foreign debt in 2020, $ 162 billion would be necessary.
“Due to the continued devaluation of the lira, foreign currency debt now accounts for a significant share of Turkish GDP and servicing foreign debt could be difficult,” concluded Commerzbank currency analyst Tatha Ghose. As soon as resources run out, the situation could escalate rapidly.
The euro is rising and has thus recovered somewhat from the losses of the two previous days. The common currency was trading at $ 1.0874 in the morning after falling to $ 1.0817 the previous evening.
The recent dollar strength cannot continue shortly before the weekend. In the morning, the dollar lost trading in all other major currencies.
“When planning wealth, the rule is: never get out completely!”
What the chart technique says
You can smile at chart technology, but there are always astonishing price movements that show that many investors are apparently oriented towards it.
For example, the Dax closed exactly at 10,279 points last Wednesday. It was from this brand that the leading index started its rally in December 2018, which lasted until a record high in February 2020.
This brand is now considered an important support, according to technical analysis it was “confirmed” on Tuesday of this week. Just below that there are so-called price gaps for which there were no quotes this year. The last gap would be closed at a Dax level of 10,097 points.
The latest recovery rally since mid-March led the Dax from 8255 points in mid-March to a new five-week high last Tuesday at 10,820 points. This rally remains intact as long as the stock market barometer remains above 9235 points.
If this upward trend remains intact, the next targets would be 11,030 and then 11,266 points, the August 2019 interim low.