Oil price collapse also pushes the Dax down

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The German stock market cannot escape yesterday’s drop in the price of oil. The DAX is down 2.3 percent in the morning trade at 10,435 points.

The topic on the markets is the oil price collapse on Monday evening, which occurred in Germany after the market closed. In the United States, the price of oil plummeted for the first time in its history due to the coronavirus pandemic. Sellers had to pay money for someone to take their oil: The price of the futures contract for the US variety WTI for May plummeted Monday by almost $ 56 to minus $ 37.63 a barrel (159 liters).

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Dax closes more than three percent in the plus

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The German stock market is going into the weekend with price gains. The leading index Dax closed around 3.2 percent in Frankfurt at 10,625 points. However, because the Dax slumped by almost four percent on Wednesday, the leading index hardly moved up compared to the previous week.

The stock market barometer probably received an additional boost from today’s small expiry date. Reach on a small expiry day Options on stocks and indices their end date, options on indices are settled at noon. That is why investors are trying to drive prices in one direction so that they can make higher profits or smaller losses with their options.

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Dax closes more than three percent in plus

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The German stock market was up around 3.2 percent at 10,625 points at the close of the stock exchange and is thus going into the weekend with price gains. However, because the Dax plummeted by almost four percent on Wednesday, the leading index barely moved up compared to last week.

The stock market barometer probably received an additional boost from today’s small expiry date. Reach on a small expiry day Options on stocks and indices their end date, options on indices are settled at noon. That is why investors are trying to drive prices in one direction so that they can make higher profits or smaller losses with their options.

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Hope for corona drugs spurs the Dax

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.

Other papers from the industry also benefit from the Boeing announcement: airbus– Shares rise 7.8 percent, FraportStocks up 5.7 percent.

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.

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.

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Dax closes almost four percent in the red

Dusseldorf The German Leading index Dax ended trading on Wednesday with a minus of 3.9 percent at 10,279 points. After an increase of 14 percent in just five trading days on Wednesday, the German stock market started to reverse again.

Sold today Wednesday apparently many foreign investors bought German shares. Because the Dax increased its minus significantly from midday trading to the opening of the US stock exchange, at the same time the euro slipped to $ 1.0918 during this period. Almost all Dax values ​​went out of the market with a minus.

Weak economic data in the US unsettled investors and also weighed on Wall Street prices. The Dow Jones already opened 2.2 percent in the red and then fell even further.

Investors were in the mood for news that the US industry cut production more in March than it had in 1946. The companies produced 6.3 percent less goods than in the previous month, as the central bank (Fed) announced in Washington on Wednesday. Overall production – to which utilities and mining also contribute – shrank by 5.4 percent.

US retailers’ sales also fell 8.7 percent in March from the previous month due to the corona crisis, the Department of Commerce said in Washington on Wednesday.

And last but not least, the US banks are suffering from the corona crisis: Due to provisions in the billions due to bad loans, the profits of Goldman Sachs, Bank of America and Citigroup almost halved.

In Germany, in addition to the weak US data, speculation that the German government was not in such a hurry to relax contact restrictions in the virus crisis caused the Dax to slide ever deeper into the red. And after having won almost 30 percent since the corona crash low in mid-March.

Just yesterday, the prices of some stocks had made investors forget that the world was in the middle of an economic crisis. So the course of the Tesla-Share more than doubled since mid-March. The Dax 30 values ​​could be about Wirecard have increased by around 35 percent in the past four weeks.

“The current crisis is like an accelerator of trends that have worked before,” says Jochen Stanzl from online broker CMC Markets. It was used as an excuse and pretext by companies that had previously had problems to carry out restructuring that was long overdue. And it is the reason for the crisis winners to expand even faster.

However, there are many crisis losers. For example, the engine manufacturer MTU, which was down 6.9 percent on Wednesday at the Frankfurt trading venue at the close of the stock exchange. The growing number of canceled orders from the US rival Boeing does too airbus– investors nervous. The shares of the European aircraft manufacturer lost around 8.7 percent.

After all: The new infections with the Covid 19 virus appear to be stabilizing or decrease. That is why there is talk in many, but not all, countries of easing contact barriers. Governments and central banks are throwing huge support packages on the market and pledging to do more when in doubt. So are you okay?

“I’m afraid the real reality check could still come,” says CommerzbankForeign exchange analyst Antje Praefcke. The market had put up with the previous “shockers” like the US labor market figures relatively well. So far, however, they would not have reflected the full extent of the effects of the “century recession”.

Many questions would remain unanswered: Are the production and supply chains really recovering quickly? Does consumer behavior change permanently? What about the recovery of the economy? “The big end could still come and give the market another cold shower,” says the analyst.

Investor sentiment also expects a sell-off on the German market, even if this may no longer push the Dax towards the 8200 point mark. “Investors should not run after the rising prices,” advises Stephan Heibel after evaluating the Handelsblatt survey Dax-Sentiment.

Meanwhile, there are increasing voices that the stock market lows from the end of March will be tested again. Should such a correction set in, there is a risk of a loss of 20 percent or more, depending on the market.

The problem with such forecasts: If a unanimous opinion has formed, it usually turns out differently. As a result, a full-fledged bear market is threatened with new lows, or the bear market is already behind us.

Look at the individual values

Varta: The battery manufacturer’s share, which traded almost nine percent lower on Wednesday at the close of trading, is moving into the focus of hedge funds that are betting on falling prices. The five participating funds have increased this speculation to 6.31 percent of all freely tradable shares in the past few days – a comparatively high ratio.

Such a short sale, as it is called in the technical language, consists of two different trading activities. For one thing, a hedge fund borrows from you Varta-Shareholder (for example, a mutual fund) share certificates and sells the papers.

Apparently that has happened in the past. On March 31 and April 8, for example, the Varta price fell in the meantime by a double-digit percentage – and this with a high trading volume. Last month, the average volume was around 272,000 pieces per day. On March 31, however, almost 750,000 Varta papers were traded, and on April 8, more than 484,000 pieces.

On April 9, the hedge fund Maplelane Capital reported that it had reached a short sale rate of 0.5 percent. Quotas below 0.5 percent do not have to be reported to the Bafin financial regulator.

But now the second trading activity is pending. The hedge funds must buy back the shares as cheaply as possible and return them to the lender. Not an easy task, as a small calculation example shows.

Because a short sale rate of 6.31 percent means: 2.55 million shares have to be bought back. With an average daily volume of 272,000 shares, this buy-back must be carefully dosed so that the Varta price does not rise rapidly and puts the hedge funds under pressure. Because they want to buy back cheaply.

Adidas: The addition of a billion dollar government loan does not help the share either. Although the paper had been 1.3 percent higher in pre-exchange trading, the shares dropped 4.7 percent from regular trading. The sporting goods group raised three billion euros from the development bank and major banks. Two-thirds of the remuneration of the Board of Management is deleted, and the dividend is also canceled.

Adidas suffers from the fact that practically all of its own stores in the western world have been closed for four weeks – including those of independent sports retailers. The stock had lost almost 50 percent since mid-February, but has risen by around 25 percent in the course of the stock market recovery in four weeks.

Fraport: The travel restrictions to curb the corona pandemic have at the Frankfurt airport operator Fraport led to a slump in business. The number of passengers fell by 62 percent to 2.1 million in March alone. The development continued in April: In the first two weeks, the passenger volume fell by over 95 percent. At the close of trading on Wednesday, the paper was down 4.8 percent.

Kuka: The Augsburg-based supplier has a large order for 5,000 robots for the car manufacturer BMW pulled ashore. This news initially caused the share to rise by 1.4 percent, but by the close of the stock market it had slipped significantly again and was 3.9 percent weaker from trading.

The systems and other technologies for the automation of production are to be delivered to BMW plants worldwide in the next few years, where they will be used primarily in body construction Kuka With. The two groups did not comment on the order value and the delivery period.

Oil prices are slipping

Brent oil from the North Sea is heading for its 18-year low from late March ($ 21.65): It fell 6.6 percent to $ 27.62 a barrel. The prices had already dropped significantly yesterday.

After all, according to the International Energy Agency (IEA), global oil demand will be weaker in April than it has been in a quarter of a century. It will drop by an average of 29 million barrels (159 liters each) a day, the IEA predicted in its monthly report on Wednesday.

“April could be the worst month – it could go down in history as black April,” said IEA chief Fatih Birol. A drop in demand of 9.3 million barrels a day is forecast for 2020. Such a sharp drop in demand cannot be compensated for by a reduction in the oil supply, the organization emphasized.

What the chart technique says

Even if the chart technique gives the Dax potential up to 11,030 points: In the short term, the indicators signal falling prices. Because the leading German index is considered overbought after an increase of 14 percent in the last five trading days before Wednesday alone, so it rose too quickly too quickly.

“At least in the short term, the downward risk seems to be higher than the upward chance, especially since the steep, almost four-month upward trend should not last too long,” say the chart technicians at Düsseldorfer Bank HSBC.

The structural picture of the individual Dax 30 values ​​has not yet brightened. All shares are listed below the 200-day line, which signals the long-term trend and underscores the still dominating, overall downward trend.

“When planning wealth, the rule is: never get out completely!”

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.

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Dax slips significantly – shortsellers target Varta stock

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The German stock market continues to widen its losses in the course of trading: listed in the afternoon the Dax 3.4 percent minus 10,331 points.

On Tuesday, the index rose 1.3 percent to 10,696 points after a four-hour technical downtime in Xetra trading. At the same time, the leading index reached a new monthly high of 10,820.

Sell ​​today apparently many foreign investors bought German shares. Because the Dax has increased its minus significantly since noon until the opening of the US stock exchange, at the same time the euro slipped significantly during this period by one percent to $ 1.0874.

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Dax is again targeting 10,000 points

Dusseldorf The leading German index starts with significant price gains into the new trading week and can briefly overcome the 10,000 meter mark. Listed in the afternoon trade the Dax 4.8 percent increase at 9980 points. The daily high is exactly 10,000 points, more than 450 points higher than on Friday.

The winners list is led by industrial stocks: The MTU-Shares rise after an interim plus of more than twelve Percent still seven percent, VW– Papers gain almost 9.5 percent, Daimler gain more than eight percent.

All 30 Dax values ​​are in the plus. Bank stocks are also among the winners. The European banking index rose 6.4 percent, led by the last shaken Natixis-Share from France with an increase in value of 14 percent.

Last Friday, the leading German index closed 0.5 percent lower at 9526 points. However, there were signs of easing after the index failed to respond to the miserable US job market data.

The stock exchanges in Asia closed clearly in positive territory, but is not traded in China due to public holidays. After the losses last Friday, the futures contracts for the New York stock exchanges showed strong gains: According to this, the stock market index should S&P 500 3.6 percent higher on Monday open.

The reason for the significant increase in the German stock market: Falling numbers in some European countries give rise to hope that the worst in the corona crisis could be over. They are in Germany alone New infections for the fourth day in a row declining. The Robert Koch Institute (RKI) reported another 3677 confirmed cases this Monday. The number rose to a total of 95,391. The increase was less than the 5936 new infections announced on Sunday.

But such numbers are already a thing Exit scenario in terms of quarantine measures conceivable? Chancellor Angela Merkel named the only benchmark for answering this question. In her video message from the previous weekend, she indicated that with a growth rate of seven percent per day (“doubling within ten days”) the restrictions could be relaxed.

“We should already be there,” says CommerzbankForeign exchange analyst Ulrich Leuchtmann. In his view, there is growing concern that there is no end in sight in this country. His calculation: With 6,000 new infections per day, it would take between 18 and 24 years in Germany until sufficient herd immunization was achieved. “Hopefully you made yourself comfortable in your home office,” is his humorous comment.

The upward movement on the Frankfurt Stock Exchange should therefore only be a relief rally for the time being be within the medium term downtrend. In order to achieve a real turnaround, a Covid-19 drug would probably have to be brought onto the market or at least an approximate end to the economic restrictions can be foreseen. Before that, the equity markets are unlikely to rise sustainably.

This view also confirms investor sentiment. After evaluating the current Handelsblatt survey Dax-Sentiment, Stephan Heibel advises: “If you have positions in your portfolio with which you would probably not get through another sell-off wave nervously, then you should part with it today.”

German industry is doing better than expected, even though new business declined before the corona crisis began. The companies collected 1.4 percent fewer orders in February than in the previous month, but economists had expected a decrease of 2.4 percent, after a strong order increase of 4.8 percent in January.

Given the global economic shock from the corona pandemic, however, is one Incoming orders slump in March and April as well as overall strong production losses in the first and second quarters.

Look at individual values

Commerzbank: The corona crisis gives the bank one large influx of private customers. The bank and her daughter have had since the beginning of the year Comdirect 130,000 new private customers won, mainly online, said private customer board member Michael Mandel. In the last week of March alone, 10,000 customers were added. “Obviously, a lot of people currently have time to deal with their banking business.” The share price rises by 7.1 percent.

Evotec: The biotech company is building a new mainstay in promising gene therapy business on. In the Austrian town of Orth an der Donau, a team of more than 20 scientists is to advance the research and development of gene therapy-based projects. It has already secured a first order: The Japanese pharmaceutical company Takeda has entered into a long-term research alliance Evotec a. The share rises by around three percent.

The stock is interesting because several hedge funds have bet on falling Evotec prices. As of last Friday, this so-called short sale rate was 7.3 percent, an unusually high figure.

Thyssen-Krupp: With a plus of more than twelve percent, the shares of the former industrial icon were among the big winners in the MDax small cap index. On the one hand, industrial papers were in demand as losers in the crash phase on Monday. The automotive supplier Hella and aircraft manufacturer Airbus also benefit from this. But at Thyssen-Krupp, too, hedge funds play a crucial role in their betting on falling prices to ensure that trading is volatile.

Betting on falling prices, known in the technical sense as short sales, works according to the following principle: Investors borrow shares from companies where they expect price losses. They sell these papers afterwards and hope that the prices will drop. Then you can buy the shares back later and give them back to the lender. The difference between the short sale and the subsequent buyback is then the profit.

Already at the end of March, Thyssen-Krupp papers peaked by almost 50 percent on two days with a high trading volume. As at the end of March, shares are likely to have bought back on Monday. The result will be available on Wednesday at the latest when the funds have to publish their short selling rates.

Rolls-Royce / PSA: Securing new credit lines with the British engine manufacturer ensured the individual values Rolls-Royce as well as the French car company PSA for buoyancy. Rolls-Royce stocks shot up up to 21.2 percent after the supplier left airbus and Boeing secured another £ 1.5 billion line of credit. However, the long-established company has lost more than half of its market value this year and is cutting its dividend for the first time in over 30 years.

Peugeot parent PSA also secured another three billion euros in loans to better position itself against the financial impact of the corona crisis. PSA shares rose as a result up to 12.4 percent.

Look at other asset classes

The gold price is rising again. A troy ounce now costs $ 1,630, an increase of 0.7 percent. At the beginning of March, the price was just under $ 1,500 because investors needed cash after the price slump in the stock markets.

The gold ETFs (exchange-traded index funds) recorded by the economic service Bloomberg recorded inflows of twelve tons on Friday. It was 47 tons in the entire week. The speculators, however, remain cautious.

Oil prices are falling again. A meeting scheduled for Monday of oil-producing countries that have merged into the so-called Opec plus has been postponed to Thursday.
In early Monday trading, a barrel (159 liters) of North Sea Brent cost $ 32.90 to ship in June, down 3.5 percent. The price of a barrel of American WTI with delivery in May dropped 2.7 percent to $ 27.50.

US President Donald Trump threatened tariffs on crude oil imports. “I’ll do whatever it takes,” Trump said at the White House on Saturday night. The background is the drastic drop in prices on the crude oil market. It goes back to a double crisis, consisting of a massive drop in demand due to the corona pandemic and the price war on the oil market. The US fracking industry in particular is suffering from the low prices.

Given the increasing optimism in the fight against the coronavirus pandemic, investors are withdrawing from government bonds that are considered a “safe haven”. In return, most yields on bonds in top-rated eurozone countries rose two to three basis points. Ten-year German government bonds yielded minus 0.4 percent three basis points firmer and thus significantly higher than the record low of minus 0.91 percent reached a month ago.

What the chart technique says

With the plus of the opening of trading on Monday, the downside risk for the leading German index will decrease. “Even if the picture brightens at short notice, it should be noted that all Dax values ​​are still below both the 200 and the 50-day average”, say Helaba’s technical analysts. With 23 titles, the 50 line also runs below the 200 day line. “In the past, such pronounced constellations only allowed limited scope on the top,” is their assessment.

According to the chart technique, the range from 10,138 up to and including 10,391 points is decisive. Among other things, there is the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020 with the previous record high. “This is the decisive hurdle in chart technology, the skipping of which would put the German standard values ​​on a quick recovery path,” say the technical analysts at Düsseldorfer Bank HSBC.

The small downward price gap from last Tuesday was closed, also a positive sign. Such downward price gaps arise when the daily low of the previous day is above the daily high of the subsequent trading day. The daily low on Tuesday was 9703 points, the following high of Wednesday was reached at 9686 points.

“When planning wealth, the rule is: never get out completely!”

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.

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Dax closes slightly in the red – US labor market data show hardly any effects

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The Dax reacted relatively calmly to the job cuts in the USA on Friday. After an initially unsteady ups and downs, the leading German index fell only slightly after the US labor market data was published and closed 0.5 percent lower at 9526 points. in the Course of the week is that Minus at more than one percent.

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Dax at the previous day’s level – US labor market data show no effects

Dusseldorf Weak US labor market data hardly affected the Dax at noon. In the morning, investors had already reacted calmly to the weaker than expected economic data, the Dax was only slightly in the red. Shortly before the release of the US labor market data, the index had even worked up to the previous day’s level. It currently stands at 9574 points – three points up.

On Friday, investors primarily looked at the new US job market data released at 2:30 p.m. Central European Time. Last month, 701,000 non-agricultural jobs were cut in the United Statesthe government announced on Friday. Economists surveyed by Reuters had only expected 100,000 in March, after 273,000 jobs were created last month.

In the past two weeks alone, a total of around ten million Americans have already applied for unemployment benefits, a historic figure. And the impact of these initial applications can hardly be seen in the figures now published. Therefore, these are not very meaningful CommerzbankEconomist Bernd Weidensteiner warned before the publication: “The cut-off date for the so-called ‘payrolls’ was before the initial applications exploded. These figures will only be fully reflected in the next month. “

For the Commerzbank analyst Antje Praefcke, the unemployment rate in the USA could easily rise into the double-digit range in April and thus outshine everything that the Post-war history has to offer at highs. The previous high was 10.2 percent in 1982.

How much the corona crisis is affecting the global economy can be explained by a number: According to Handelsblatt calculations, the 50,805 companies listed worldwide lost 19.4 trillion euros in just six weeks. So far, this decay has been unique in such a short time. With this sum, all of Europe’s public debt could be repaid, and there would still be five trillion euros left.

New economic data from China can not inspire the markets, but signal relaxation. The service sector there recovered only slowly in March from the countless shop closures in the midst of the coronavirus outbreak. The Caixin / Markit Purchasing Managers’ Index (PMI) for the service sector, released on Friday, rose from its record low of 26.5 in February to 43 in March. Nevertheless, it was the second weakest value since the start of the survey at the end of 2005. Values ​​below 50 points mean that activities have shrunk.

Over the course of the day, purchasing managers’ indices in Europe also became published on the service sector. These showed that the corona crisis hits service providers in Germany and in the euro zone with even greater force than previously assumed. The purchasing manager index for the German service sector fell to 31.7 points in March from 52.5 points in February. This is the most significant slump since the company survey began in 1997 and at the same time a record low. An initial estimate had only dropped to 34.5 points. The barometer, which has received a lot of attention on the financial markets, only signals growth from 50 points.

The service sector is particularly hard hit by the corona crisis, since the travel and tourism industry, the hospitality industry and the leisure industry suffer massively from the restrictions imposed. “The impact of the pandemic and the resulting efforts to curb it are all too clear given the unprecedented slump in the German services sector in March,” said Markit economist Phil Smith.

The barometer for service providers in the euro zone was also worse than expected. It dropped to 26.4 from 52.6 points in the previous month – also a negative record. Here the preliminary result was 28.4. “Our data indicate a slump in the euro economic output of almost ten percent,” said Markit chief economist Chris Williamson. “Worse seems inevitable in the near future.”

No country was able to escape the downward trend. “But the particularly drastic drop in the Italian service index to 17.4 points gives a foretaste of what the other countries are facing due to increasing closings, curfews and tighter controls,” said Williamson. Employment is currently not falling as rapidly as during the financial crisis. However, unemployment is likely to skyrocket in the coming months.

Look at other asset classes

On Friday, oil prices initially fell significantly from the interim high on the previous day. In early trading, the price of a barrel (159 liters) of the North Sea Brent and US WTI fell by around five percent to $ 28.40 and $ 24, respectively. But within an hour the picture turned again and prices returned to Thursday’s profits: Meanwhile, the Brent price is up about eleven percent at $ 33.34, WTI is up almost seven percent and costs $ 27.09.

On Thursday, US President Donald Trump indicated cuts in funding and thus an agreement in the price war between Saudi Arabia and Russia. After a denial by the Russian government and a lack of confirmation from Riyadh, prices quickly dropped again.

“Trump has to stabilize the oil price, otherwise a wave of bankruptcies awaits us in the oil sector”

What has apparently changed the oil market again: According to insiders, the major crude oil producing countries (Opec plus) are rethinking a drastic reduction in production to stabilize prices after. Talking about throttling by ten million barrels (barrel of 159 liters) per day. If the cut were even more pronounced, states outside the alliance would also have to make their contribution.

Earlier, the Russian news agency Ria, citing the Azerbaijan Ministry of Energy, reported that Opec + would advise on its funding policy on Monday. The talks should be conducted as part of a video conference. All Opec + countries are expected to participate.

Commerzbank analysts are skeptical that the countries will agree on such large cuts. They lowered their Brent year-end forecast to $ 40 a barrel from $ 50 previously.

Look at individual values

Beiersdorf: The shares give 0.3 percent because of the manufacturer of Tesa adhesive products and Nivea-Cream has withdrawn its forecast for 2020 because of the corona crisis. So far, the stock has shown a stable stock market development compared to the other 29 DAX stocks and has only lost 15 percent or less since the stock market high on February 19 than the other stocks in the leading German index.

MTU: The shares of the engine manufacturer, on the other hand, have had the biggest loss since the record high on February 19, at minus 50 percent. And today, Friday, the decline continues with a drop of 2.7 percent.

Shop pharmacy: Online shops are among the winners of the corona crisis, including the online drug retailer Shop pharmacy. The months of January and February were already very strong, but the outbreak of the corona virus then gave a further boost in March. The number of active customers grew by 300,000 to five million in the first three months. The company now expects annual sales to be at least 20 percent above the previous year. The share continues to rise by a good six percent.

Puma: The sporting goods manufacturer is cutting the dividend for the past year because of the corona crisis. The shutdowns ordered by the authorities to contain the risk of infection in almost all parts of the world would have led to a drop in sales and a significant decrease in the operating cash flow. It is currently not foreseeable how long this situation will last. The stock loses almost four percent. The number three in the global market for sports shoes and clothing wanted to distribute 50 cents per share, a total of around 75 million euros. puma had already cut board salaries for April and registered short-time work.

What the chart technique says

The larger chart shows: From the record high of 13,795 points in mid-February, the Dax dropped to 8255 points in mid-March. The subsequent countermovement ended at 10,137 points. A normal correction of this interim increase should end at 9196 counters at the latest.

A further, rather short-term support was briefly undercut on yesterday’s trading day. With 9337 points, the Dax marked a new low of the past seven trading days. A warning shot that it could quickly go down again. According to the Düsseldorfer Bank, the Dax should definitely go back into crisis mode HSBC again at courses below 9070 points.

On the upside, the small downward price gap from last Tuesday is still slowing down. Such downward price gaps arise when the daily low of the previous day is above the daily high of the subsequent trading day. The daily low on Tuesday was 9703 points, the following high of Wednesday was reached at 9686 points.

The important brands on the top are currently a long way off. The decisive factor is the space between 10,138 and 10,391 points inclusive. Among other things, there is the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020 with the previous record high.

“This is the decisive hurdle in chart technology, skipping it would put the German standard values ​​on a fast recovery path,” say the technical analysts at Düsseldorf-based bank HSBC.

Here is the page with the DAX course, here is the current tops & flops in the Dax. Current Short sales of investors can be found in our Short sales database.

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These companies are the winners and losers of the corona crisis

Ventilator from Drägerwerk

The company benefits from the rapidly increasing demand for medical technology.


(Photo: dpa)

Düsseldorf, Frankfurt, Munich Many listed companies are particularly hard hit by the coronavirus pandemic and the associated economic standstill. Only a few benefit. If the situation normalizes, the flights of fancy will soon be over – but not for everyone. We present three winners and three losers of the crisis.

Drägerwerk: In demand medical technology

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