Monday, September 21, 2020
The fear of a new lockdown is causing the Dax to rush into the depths in Frankfurt. At the start of the week, the leading index lost a good 4.4 percent. In addition to the fear of a pandemic, Deutsche Bank is also making negative headlines.
The fear of the rising wave of corona infections has seriously affected the Dax at the start of the week. In the end, the leading index narrowly escaped its biggest daily loss since mid-March, when the virus crash was still going on. From trading it went 4.37 percent lower at 12,542.44 points. Shortly before, it had fallen close to 12,500 points, to a low since early August.
According to market analyst Milan Cutkovic from the trading house AxiTrader, the increasing number of infections in Europe became the next disruptive factor in the stock rally that has recently stalled. The MDax also went down a lot. The index of medium-sized stock market stocks lost 3.68 percent to 26,499.95 points. In Germany, the number of new infections reported on Friday reached a high for almost five months, while in some neighboring countries there is an even higher incidence of infections. The British Minister of Health Matt Hancock did not rule out another lockdown in a BBC interview. In this case, stockbrokers fear catastrophic effects on the economy.
Leak puts pressure on Deutsche Bank
There were only losers in the Dax. At the end of the index, Deutsche Bank’s paper slumped 8.8 percent. The financial sector also suffered severe losses across Europe. The reason for this was a leak in confidential money laundering reports from the US Treasury Department about dubious payment flows, the so-called “FinCEN files”. Deutsche Bank is one of the banks explicitly mentioned in the report. Even if a few questions had to be clarified, the files in any case increased the regulatory and sanction risks for the industry, said market analyst Neil Wilson of Markets.com. The fact that the Frankfurt bank should be on a takeover wish list from Swiss UBS did not help in this environment.
Among the German small caps, the escalating dispute with the Spanish Telefonica group dealt the shareholders of United Internet and 1 & 1 Drillisch a powerful blow. After it became known that both had to cut their goals for this year due to rising costs of access to the O2 network, United shares collapsed by almost a quarter and 1 & 1 by almost 28 percent. Telefonica Deutschland’s shares followed the overall market by around four percent.
Investors seek refuge in the dollar
Across Europe, travel figures were once again hit particularly hard by investors’ fears. The papers of Lufthansa slipped in the MDax by 9.5 percent. That fit the message in the afternoon that the airline wants to make even deeper cuts in the fleet and staff due to the virus. The clouded prospects in the Dax brought the shares of the aircraft industry supplier MTU a minus of eight percent. The few positive rays of hope in the Dax index family were the shares of Hornbach, Shop Apotheke, Zooplus and Hellofresh, which have already been celebrated as Corona winners in the past few months, which are listed in the MDax or SDax and between 0.7 and 6.7 percent there won.
The stock exchanges across Europe also went downhill. In the end, the EuroStoxx lost 3.74 percent to 3160.95 points. The French Cac 40 was similarly downhill, while the British FTSE 100 lost around 3.4 percent. The downward trend was also evident in New York, where the Dow Jones Industrial lost around three percent at the close of trading here.
The euro also came under pressure as investors sought refuge in the US dollar. Most recently, $ 1.1742 was paid for the common currency. The European Central Bank (ECB) had meanwhile set the reference rate at 1.1787 (Friday: 1.1833) dollars. The dollar cost 0.8484 (0.8451) euros. On the bond market, the current yield fell from minus 0.50 percent on Friday to minus 0.52 percent. The Rex bond index rose by 0.08 percent to 145.73 points. The Bund future rose 0.34 percent to 174.66 points.