Dax slips again – Zocker brings ABN Amro loss of millions, share loses significantly

Dusseldorf The price gains of the past two trading days have evaporated again. The Dax loses 2.5 percent in morning trading and stands at 9627 points.

The course of trading on Wednesday yesterday showed the typical behavior of a bear market: negative reports lead to a quick sell-out. An extremely weak Ifo index ensured that the index slipped by 650 points within a short period of time. By definition, the Dax has been in a bear market since mid-March because it slipped more than 20 percent from its record high (13,795 points) in mid-February – that was the case at around 11,000 points.

The fact that the leading German index Dax went out of trading on Wednesday after a final spurt of 1.8 percent and 9874 points was also due to gains on the US stock exchanges. The Asian stock exchanges are already trending weaker.

The behavior showed a similar behavior as on Wednesday German stock market even before the stock exchange opened. The pre-market indicators slipped significantly after GfK market researchers published consumer sentiment for Germany. The virus crisis is depressing sentiment to the lowest level since the global financial crisis. According to GfK, consumers see Germany facing “very difficult times” economically. “Hard times will come for the trade as a whole,” concludes GfK.

And today it stands Publication of another important economic barometer on, a stepchild of the market that has not been noticed for a long time. It’s the weekly initial jobless claims. They were ignored because in the past few years there was almost full employment in the USA. According to the Commerzbank– Analysts are likely to see applications for around three million by March 21, a tenfold increase over the previous week. This is unlikely to support the stock markets.

So there is a lot to be said that this bear market in this country with all its consequences is likely to continue over a longer period of time. According to the Frankfurt Stock Exchange, the behavioral economist Joachim Goldberg expects only “rallies within the bear market” in the future, ie only interim price gains within the longer-term downward trend.

His reasoning: Both the “bears” that are betting on falling prices and the bulls that are expecting price gains have not separated from their commitments in the past few days. The profits with their purchased long and short products are apparently not enough for them. Apparently there have to be even larger price movements for one side or the other to sell.

Which naturally leads to the question: If the Dax has to drop below 8000 points, so that there are sustainable course gains again?

“Long-term capital inflows would be necessary for the Dax to get out of the worst,” says Goldberg. “And they only come when the conviction prevails that the corona pandemic has survived to some extent.”

Minus 26.23 percent, as much as they have lost the 30 DAX values ​​in the past 20 days, as of Wednesday. The analysts at Landesbank Helaba calculated this. They best dressed Beiersdorf-Titles with a minus of 5.93 percent from the affair. The biggest loss was in the papers of MTU accept with a minus of 50.17 percent.

Look at other asset classes

Oil prices are slipping significantly again on Thursday. The North Sea variety Brent falls by minus 1.3 percent $ 27.02 barrel, the US variety WTI even by 2.3 percent to $ 23.94. The prices of both varieties have already slipped by around 60 percent this year.

Given the rapidly shrinking demand and rising production, the outlook for oil prices remains negative. Estimated global oil demand will decline more than 14 million barrels a day in the second quarter, which should result in unprecedented inventory build-up.

Look at the individual values

Evotec: The shares lose 1.1 percent. The drug developer expects further strong organic growth in 2020. However, it is not yet possible to precisely quantify the effects of the corona crisis.

Deutz: In view of the corona pandemic, the engine manufacturer is suspending its forecast for the current year and shutting down large parts of its production from April 1, initially until April 17. The stock is down three percent.

SMA: In contrast, the shares of SMA Solar rose by 8.6 percent. Despite the corona pandemic, the solar technology group is sticking to its annual forecast and expects an increase in sales and profits.

ABN Amro: Strange but true. Gambling by a single customer in the United States has caused the Dutch bank a loss of $ 200 million. This will affect the results of the first quarter, said ABN Amro With. The customer had speculated with warrants and futures, the positions are now closed. Because many investors are probably wondering about the security of the trading systems, the share falls by 4.4 percent.

Pfeiffer Vacuum: The vacuum pump manufacturer has collected its annual targets because of the corona crisis. The forecasts for 2020 for sales growth, unchanged returns and investments in the order of magnitude between 40 and 60 million euros are invalid, according to the Management Board. He did not name new goals. The stock loses 2.8 percent.

Cewe: Because of the uncertainties associated with the coronavirus pandemic, the photo company has decided not to make a forecast. At the moment, the focus is on online orders and mailing. Nevertheless, the dividend is expected to rise for the eleventh time in succession, namely to EUR 2.00 per share from EUR 1.95 previously. The investors acknowledge this with a small minus of 0.3 percent.

What the chart technique says

Despite the price gains, the chart-technical picture does not yet give the all-clear. The Dax rose to 10,137 points on yesterday’s trading day. As a result, two resistances are gaining in importance: First, the downward price gap of March 12, which spans the range between 10,138 to 10,391 points, and the low of December 2018 with 10,279 points, the starting signal for the rally until mid-February 2020.

“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 Düsseldorfer Bank HSBC. Without a recapture, the coming trading days are likely to remain volatile.

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 of March 11 was 10,391 points, the high of the following trading day was 10,138 points. Such gaps are a quick re-evaluation of the market and therefore an important resistance according to chart technology.

On the underside, according to the HSBC, the Dax should return to crisis mode at prices below 9070 points.

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 makes up almost 600 points after heavy losses at the start

“The recession will be at least double-digit worldwide in the second quarter”

Dusseldorf The Dax experience another volatile trading day. After an initial minus of five percent, the index rose to 1.3 percent at 1 p.m. and then slid back into the minus. In afternoon trading, the Frankfurt benchmark slipped 1.5 percent from the previous day’s close and stands at 8798 points. There are almost 600 points between daily low and high.

Two news items contributed significantly to the interim recovery: First, the US Federal Reserve is launching new measures to combat the economic consequences of the coronavirus pandemic. Accordingly, it wants to buy up unlimited government bonds and mortgage-backed securities.

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Professional investors are thinking about acquisitions

DAX board from Monday

This week it was mostly downhill.

(Photo: AFP)

Frankfurt The fear of a continuing standstill in public life with massive consequences for the economy is causing stock prices to fall further and further. The German Leading index Dax continued its downward slide after a day of gains and lost 5.56 percent to 8442 points on Wednesday. Since the beginning of the stock market crash at the end of February, it has lost over 5000 points or just under 40 percent. Similarly, other European indices have slumped. The US exchanges, which are also clearly in the red, have lost a good 30 percent so far.
After the entry ban imposed by the European Union on Tuesday evening, aviation stocks in particular fell. The aircraft manufacturer’s shares airbus in Paris and papers from the engine manufacturer MTU Aero Engines temporarily lost a fifth. Auto stocks also fell above average. To VW, Daimler and Ford have announced BMW to stop production in Europe.
“Uncertainty is depressing share prices,” summarized Hendrik Leber, head of the Acatis fund boutique, in a conference call. There was simply no news to ensure that investors regained some hope with regard to the corona pandemic.

Professional investors are discussing signs of hope

However, some professional investors are already counting on the fact that it will become apparent in the foreseeable future that the policy of foreclosure against the virus, following the example of South Korea, will also have an effect in Italy and with some delay also in other European countries such as Germany. If this impression solidifies and the number of new infections increases less sharply, this could also bring new hope to the stock exchanges, said fund manager Frank Fischer from Boutique Shareholder Value Management at the conference.

Investors are literally thirsty for reports that take the terror out of the crisis, Leber said: This could be news that a vaccine against the lung disease is pending approval, that seriously ill people have been rescued, and a cheap rapid test is coming onto the market.

In the meantime, investment professionals are already looking for ways to enter a now significantly cheaper market: their focus is on companies with stable business models and low debt, whose share price has plummeted. If the banks are enabled to provide the companies with liquidity, their share prices are likely to return to old levels in the not too distant future, as fund manager Leber says: “These are the price winners of tomorrow.”

Fischer is also looking for cheap stocks from companies of all sizes, which in case of doubt even benefited from the crisis, but were still unable to escape the downward pull on the stock market. The prime example is the online retailer Amazon.

More: No end to the sales wave in sight

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Crash on the stock market continues – Dax loses

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The German stock market simply has no hold. In midday trading, the leading index is 5.2 percent in the red and stands at 8474 points. The biggest losers include stocks from the aviation industry.

A skeptical analyst comment on the titles of airbus and MTU Aero Engines further down. Airbus titles fell on Wednesday by more than fifteen percent to 53.28 euros, the lowest since November 2016. MTU shares plummeted in Frankfurt by up to 17.9 percent to their lowest level in more than three years.

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Dax slumps more than ten percent

Dusseldorf The downward slide on the German stock market continues unabated. Loses in the afternoon trade the Dax 5.8 percent and stands at 8690 points. The leading index has thereby made up for a large part of its losses. Because the daily low was shortly after the opening of the US stock exchanges at 8255 points, a decrease of more than ten percent.

Infineon is the biggest loser with almost 14 percent, the minus has meanwhile been over 17 percent. In the MDax are the airport operators Fraport with minus 14.6 percent and the real estate group Aroundtown with minus 17 percent by far the biggest losers.

Four weeks after its record high of 13,795 points, the Dax is more than 40 percent lower due to the coronavirus pandemic, near a five and a half year low of 8255 points. Never before in its history has the German leading index gone so drastically downhill. With a minus of almost 37 percent since the beginning of the year, it is also heading for its blackest quarter.

Last Friday, the leading German index showed the first signs of stabilization when it closed the trade at least with a small plus after high profits in the meantime. Final result: 0.8 percent with 9232 meters. After the exchange, the Frankfurt benchmark even rose to 9630 points around 10 p.m. on Friday. But that’s no longer an issue.

The reaction of the markets to the drastic cut in interest rates in the USA to almost zero percent on Sunday evening shows that the problems cannot be solved with a loose monetary policy. The first rate cut in the United States a few days ago had not calmed the markets, but further aggravated the downward slide.

“The US Federal Reserve did not help calm things down,” commented the chief economist at the VP Bank, Thomas Gitzel, after the further rate cut. Taking just such a clear step just a few days before the regular interest rate decision suggests stress.

The Japanese central bank also eased its monetary policy further on Monday: Among other things, it ramped up the purchases of listed funds, so-called ETFs, and other risky investments. The markets in Asia already slipped significantly. The Chinese indices lost around four percent, although the corona virus hardly plays a role in the face of a few new cases.

The important question in Europe after the many border closings is: How long do these last? “According to the logic with which governments are currently introducing restrictions, they have been founded for a very, very long time,” says CommerzbankForeign exchange analyst Ulrich Leuchtmann.

As in the financial crisis, investors should keep an eye on banks’ prices. Because since the beginning of the year, the Stoxx 600 banks have slumped around 40 percent. The significant gains last Friday meant only a small interim recovery. The Deutsche Bank share lost around ten percent in morning trading and is now only 3.8 percent in the red. Commerzbank papers lose 6.7 percent. The European banking index loses 11.4 percent.

The hardest hit are the banks in Greece, whose share prices have since fallen by around 18 percent. As a result, the Greek stock exchange index ASE also falls by more than 11 percent and is the European selection index with the greatest minus.

A worrying fact is that credit default insurance, so-called credit default swaps (CDS), have skyrocketed in the past few days: today they signal an increasing likelihood that the equity cushion built up in recent years will not be sufficient to cover all banks without a capital shortage through a potentially drastic corona crisis.

In addition, there is a higher risk provision for loans at risk of default if companies run into economic problems. In addition, interest rates are likely to remain low for longer. The banks’ margins will therefore come under greater pressure than before. The banks may have significantly strengthened their resilience since the financial crisis. But the massive losses on the stock market show that confidence in the stability of the financial system is still fragile.

The fear of the economic consequences of the coronavirus pandemic is also causing insurers to plunge again. The European industry index falls by almost 14 percent. It is the second largest drop in price in its history. US insurers like AIG and MetLife lose around 15 percent each in advance. The industry faces high payments from credit and trade insurance. In addition, they lose the income from investments.

Panic in the markets at record levels

The nervousness on the stock markets has reached a higher level than during the financial crisis. The volatility index VDax, the nerve barometer of the stock exchange, rose today by more than 20 percent to 93.30 points. Investment professionals have never shown such panic. Because during the financial crisis this was a maximum of 85.12 percent.

The higher the VDax, the higher the price fluctuations expected by investment professionals in the coming days and weeks. The value is calculated from the options actually traded on the Frankfurt futures exchange.

The credit default insurance policies of European companies continue to become more expensive. The “Markit iTraxx Europe Crossover” index, which is regarded as a barometer for the hedging costs of European companies with a rating in the junk range, rose by 79 basis points to 602 basis points. This is the highest level since 2012. A corresponding financial company index is increasing 47 basis points to 315 basis points.

Look at other asset classes

Because of the second drastic US interest rate cut within two weeks, the controls Monday’s exchange rate for the largest daily loss for over three years. The dollar index, which reflects the price of major currencies, loses 1.1 percent to 97.645 points. In return, the euro rose 0.8 percent to $ 1.1199.

Oil prices fell significantly on Monday despite another massive rate cut in the US to support the economy. In the morning, a barrel (159 liters) of North Sea Brent cost $ 32.27. That was $ 1.58 less than on Friday. The price of a barrel of American WTI fell 96 cents to $ 30.77.

Oil prices fell Monday morning, despite President Donald Trump announcing measures to support oil prices on Friday. According to reports from last night, the US is currently preparing to buy 77 million barrels of crude oil on the market in the next two weeks to top up the country’s emergency reserve.

In the bond market, investors are likely to be more concerned about the future debt sustainability of the individual euro countries, as budget deficits are likely to increase. Austria, for example, expects a strong increase. Portugal expects additional charges of 300 million euros. Accordingly, the yield on ten-year government bonds from Portugal has risen from 0.4 percent to currently 1.008 percent since Thursday.

The yield on ten-year Italian government bonds was now 2.166 percent on Monday. Last Thursday, this figure was 1.12 percent. The yield on Italian bonds is currently at the level of Greek government bonds.

The appearance of gold as a safe haven and crisis currency gets the first scratches. Because despite the high stock markets, the price for the precious metal is now around four percent and is quoted at $ 1,486 per troy ounce.

Gold already recorded the biggest weekly loss since 2011 with a minus of 8.6 percent. Commerzbank still attributes this to sales of speculative financial investors in order to meet margin calls in other markets (“margin calls”).

Sales now even seem to spill over to exchange-traded index funds (ETFs): the gold ETFs recorded by the Bloomberg economic service reported the largest daily outflow since December 2016 at 17 tons.

There was a similar pattern of behavior in gold during the 2008 financial crisis. Back then, gold recovered relatively quickly after the sharp decline. If the scenario repeats itself, gold offers an attractive entry opportunity.

Look at the individual values

Tui: The tourism group stops most of its business because of the corona virus and applies for government aid to bridge it. All package tours and cruises do not take place for the time being due to the requirements of many governments to contain the virus, hotels are being closed. The stock has now slipped by more than 35 percent and is currently only 15.6 percent in the red.

Salzgitter: The German steel group slipped into the red last year. The pre-tax loss was around 253 million euros, as the company announced. In the current year, the group continues to aim for a balanced pre-tax result, but announced that the effects of the coronavirus pandemic could not yet be assessed. The stock loses 4.8 percent.

Talanx: The insurance group increases the dividend for the past financial year by five cents to EUR 1.50 per share. Nevertheless, the paper loses around 12.7 percent. The Hanover Group is sticking to its 2020 targets. The goal was valid as long as the corona pandemic did not result in any major upheavals on the markets Talanx With. The “tightened low interest rate phase” will burden the result with around 25 million euros.

Wacker Neuson: Under the impression of the corona virus pandemic, the construction machinery manufacturer fears a decline in sales and profits, which investors acknowledge with a minus of 10.2 percent in the share. The Management Board expects that the production figures planned for 2020 cannot be achieved due to bottlenecks in the supply chains and that individual sales markets will be weakened considerably.

What the chart technique says

In the past 17 trading days, the German stock index has dropped 14 times with a minus. The stock barometer is still far from stabilizing. Chart technology and fundamental reasons are currently irrelevant to investors. In terms of charts, we have a bear market as the major indices are now more than 20 percent below their all-time highs. In order to take the greatest pressure off the Dax, at least one trading day without a new low is required.

High dividend yields

Is there any good news at all? Yes, if you just look at dividend yields. A few weeks ago, shares were only bought because interest investments have become unattractive. And because there is currently no better alternative in terms of dividend yield.

And this criterion has improved significantly after the price drops.

Asset manager Marc-Oliver Lux has a good tip when it comes to dividend yields for investors who make part of their livelihood with the dividend.

Because every country has its own rhythm when it comes to dividends. In Germany, the money is usually paid out in one go after the Annual General Meeting. High season is therefore in April and May. In the United States, companies typically stretch their payouts over four quarters. Instead of a single large transfer, there are four smaller payment days.

Corona briefing

Those who skillfully put together their portfolio can even collect quarterly dividends every month. Three shares are enough. An example: Cisco Systems usually pays in January, April, July and October; the telecom group Verizon in February, May, August and November; Royal Dutch Shell in March, June, September and December.

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 more than three percent in minus – bank stocks under pressure

Dusseldorf The leading German index closed the week down just under three percent. On Friday, the German stock index closed the day down 3.37 percent at 11,541 points. After the Dax was initially on a recovery course in the middle of the week, things went downhill again on Thursday.

At times the Dax was even this Friday 4.1 percent in the red at 11,455 points. That was the lowest level in seven months.

The US stock markets also continued their downward slide on Friday. The Dow Jones of the standard values ​​fell 2.9 percent at the opening to 25,354 points and has only recovered slightly since then.

The S&P 500 – the most important stock market barometer in the world – slid three percent to 2932 points when it opened and should have lost around ten percent of its value from its record high of February 19 at the end of this week. The technology exchange Nasdaq opened on Friday minus 2.9 percent to 8495 points.

The unexpectedly good data from the US labor market could hardly stabilize the prices, as the numbers only referred to the time before the rapid spread of the corona virus. Last month, 273,000 new jobs were created, the government said on Friday. This is more than what experts expect.

The corona virus is affecting more and more parts of the United States. Against this background, the Fed will have to make regular decisions on interest rates on March 18, and the markets expect a further cut.

graphic

The Euro Stoxx 50 as the leading index in the euro zone temporarily fell by a good four percent. The MDax of medium-sized market stocks lost more than three percent. The share of the industrial group listed in the MDax Thyssen-Krupp fell temporarily to a record low of minus 5.9 percent at 6.83 euros. The papers close 4.35 percent in minus at 6.94 euros.

Security asked

Investors are clearly looking for security and sending out capital in bonds, certain currencies such as the yen and euro, but also gold. The prices of government bonds from the USA and Germany rose significantly, and their yields fell accordingly.

For example, the yield on ten-year stocks fell on Friday to a record low of minus 0.745 percent. It was below the previous low of minus 0.743 percent last September. At that time, Brexit and the trade dispute between the United States and China had unsettled investors.

Ten-year US bonds also fell to a new record low of 0.67 percent on Friday afternoon. Falling US bond yields are weighing on the dollar and making the euro rise. The single currency rose 0.7 percent and for the first time since July 2019 it again cost more than $ 1.13.

Experts believe that investors’ flight into bonds will continue. “Returns of zero percent are conceivable worldwide,” says Shaun Roach, one of the chief economists at the rating agency S&P Global. Bonds in the amount of $ 14.4 trillion are now yielding negative returns worldwide.

The price of gold rose to $ 1,690 on Friday morning, its highest level in seven years. Commodity analyst Carsten Fritsch from Commerzbank believes that gold should not have seen its high because of the ongoing uncertainties and further falling interest rates. In the early evening, the gold price was $ 1,667.

Corona concern pulls Dax into the red

That too unexpectedly strong increase in orders from industry did not provide buoyancy for the Dax. Orders to companies rose by 5.5 percent compared to the previous month, as the Federal Statistical Office announced on Friday. This is the most significant increase since mid-2014. Analysts had expected an increase of 1.3 percent.

However, economists do not read an upward trend from these numbers, “A silver lining on the order horizon, but unfortunately no sign of a noticeable economic recovery”, says Bastian Hepperle from Bankhaus Lampe. It is encouraging that the situation had improved at the beginning of the year even without large orders. But because of of the corona virus are “further disruptions in the production process and in incoming orders mapped out “.

The chief strategist at Merck Finck, Robert Greil, also believes that growth will continue to decline. “As long as the global spread of corona continues, they should Equity markets continue to fluctuate strongly, “ he says. After all: “The markets already have less economic growth and numerous profit warnings priced inIn addition, in his opinion, that of the US Federal Reserve (Fed) other central banks react supportively, the ECB “next Thursday at the latest,” believes Greil.

Also calculates CommerzbankChief Economist Jörg Krämer that the European Central Bank will decide at its meeting on Thursday to tighten the penalty interest rate for banks. He expects the deposit rate to change to minus 0.6 from the current minus 0.5 percent. In addition, the currency keepers around ECB chief Christine Lagarde are likely to increase the volume of their monthly bond purchases by 20 billion to 40 billion euros for a limited period of six months, for example.

A look at the Dax 30 values ​​shows a concrete indication of the degree of uncertainty among investors due to the economic consequences of the coronavirus epidemic: at the stock exchange launch on Friday were all Dax 30 values ​​in the minus, Were most affected Lufthansa-Titles and shares of German bank, which temporarily lost 6.6 and 5.2 percent of their value. In the afternoon Lufthansa recovered and went out of business with only a slight minus. Deutsche Bank shares closed 3.8 percent in the red.

Aviation and tourism stocks are suffering from the consequences of the virus epidemic. The European industry index falls 3.3 percent to a five and a half year low of 198.92 points. The share of the European aircraft manufacturer airbus fell temporarily by 7.3 percent to a 13-month low of EUR 99.86 and is heading for the largest daily loss in just over five years. Also MTU Aero Engines temporarily lost almost 7 percent in retail and closed 5.3 percent lower at EUR 203.60.

Bank stocks are also in a downward trend due to the corona virus, The European industry index drops 4.3 percent to an eleven-year low of 112.48 points.

Commerzbank already undercut its record low of April 2019 on Thursday, it continues its downward trend today and is temporarily 8.91 percent in the red. At the close of trading, Commerzbank was trading at minus 7.2 percent and EUR 4.30.

Overseers and politicians fear that evacuations and quarantine measures for an economy central functions such as payments or securities trading fail could. Banks are therefore already working intensively on emergency plans to ensure that they remain able to act under all circumstances, even if the epidemic spreads.

But that’s only one part of the threat to European money houses: investors fear that the virus will weigh on banks’ earnings. There is also the risk that The number and volume of loans at risk of default due to a recession increase significantly could.

Because of the corona virus, investors speculate that inflation will remain low and well below the ECB’s 2 percent target. As a result, what was important for the ECB’s monetary policy fell Euro inflation barometer Five-Year-Five-Year-Forward this Friday to a record low of 1.0402 percent, That means investors see inflation – starting in five years – over a period of five years at exactly this percentage.

Opec meeting in Vienna

The Opec summit in Vienna failed. Saudi Arabia was unable to persuade Russia on Friday to propose a cut in funding. On Thursday, Opec demanded a reduction of 1.5 million barrels (159 liters) of oil per day. The partners, including Russia, were to take over 500,000 barrels. Now the alliance of 14 Opec members and their ten cooperation partners is on the brink of extinction.

As a result, panic spread across the markets. The price of Brent oil peaked on Friday afternoon by around eight percent to around $ 45.75 a barrel (around 159 liters). The US variety WTI fell to around $ 42 per barrel. This is the lowest level in around three years.

The background to the required cut in production is the significantly lower oil demand that investors expect due to the Corona crisis. Now there is concern that the Opec + alliance will break up in a dispute between its most powerful members, Saudi Arabia and Russia, said Helima Croft, Opec expert and analyst at RBC Capital Markets. If Russia left the Opec + group, the price could drop.

Look at the individual values

Deutsche Bank: The titles of the largest German money house are falling under the wheels due to the increasing fear of corona virus having a negative impact on the global financial system. On Friday morning, Deutsche Bank stocks temporarily lost 5.2 percent of their value to EUR 6.67. At the close of trading, the shares were down 3.4 percent at EUR 6.77.

Thyssen Krupp: Thyssen-Krupp’s share price fell to a record low on Friday. The group, suffering from high losses, debts and pension burdens, sold its only notable profit maker, the elevator division, for a good 17 billion euros last week. The papers close 4.35 percent in minus at 6.94 euros.

Commerzbank: Just a few weeks ago, Commerzbank and Deutscher Bank papers were among the biggest winners this year. In mid-February, the Commerzbank securities had still cost around 6.80 euros. However, the effects of the corona crisis are particularly heavy on major European banks. Commerzbank shares already hit their record low of April 2019 on Thursday. This downward trend continues today, at times the minus was 8.9 percent and EUR 4.22. At the close of trading, Commerzbank was trading at minus 7.2 percent and EUR 4.30.

Airbus: Airbus gets a month without a new order. The European aircraft manufacturer’s share temporarily fell 7.3 percent to a 13-month low of EUR 99.86, heading for the biggest daily loss in just over five years. The good news is that there were no cancellations in February despite the coronavirus epidemic, writes analyst Sandy Morris from investment bank Jefferies. He also pointed out that in the previous two years there had been several months without new orders. In the evening, the stock was even 7.6 percent weaker at EUR 99.50.

Infineon: At the semiconductor company Infineon could be a planned multi-billion dollar acquisition of the US chip maker Cypress Semiconductor fail. The Committee for Foreign Investments in the United States (CFIUS) raised security concerns and recommended that President Donald Trump prohibit the German company from taking over, the finance agency Bloomberg said, citing persons familiar with the matter. The Infineon share then lost value on Friday and went out of trading at minus 5.5 percent at EUR 16.85.

Lufthansa: Lufthansa shares temporarily lost 6.6 percent of their value. According to a spokeswoman for the company, Lufthansa would like to send employees on forced leave due to the effects of the coronavirus. They are in talks with the Federal Employment Agency. As the airline announced on Friday, more flights than planned are to be canceled. Capacity is to be reduced by up to 50 percent in the next few weeks. In the afternoon, the papers went on a recovery course and closed in the slight minus of 0.2 percent at 11.47 euros.

What the chart technique says

11,624 points – this brand is the focus. Because this number is the correction low, the lowest point since the record high of 13,795 points on February 17. If the leading index does not break this brand significantly, there is a chance of a longer, sustainable bottom from which the prices can rise again. However, this mark was already fallen below on Friday morning, so a further sell-out is likely.

The German stock index is likely to remain outside its normal range for a long time, analyst Andreas Büchler of Index Radar speculates. The risk that the Dax will temporarily fall below the lower limit of its fluctuation margin at around 11,500 points is high. A recovery is overdue in the medium term, but the current trend could continue for a few weeks.

Economic analysts hope for political help

Handelsblatt analyst check: Barclays leaves SAP on “Overweight”

The British investment bank Barclays left the rating for SAP overweight with a target price of 150 euros. Following the fall in the price of the European software sector due to the novel corona virus, investors now have the opportunity to build up positions in shares of companies that shone with long-term growth drivers and attractive future prospects, wrote analyst James Goodman in a sector study available on Friday.

In this context, the expert explicitly named the papers from SAP, TeamViewer and Avast.

Click here for the Handelsblatt analyst check

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 temporarily drops by 4 percent

Dhe share prices of large German companies continue to fall, investors instead resort to state securities that are fail-safe: Federal bonds with a ten-year term yielded on Friday at almost minus 0.75 percent, lower than ever before – the German state has never been able to finance itself this cheaply.

The German standard index Dax, however, temporarily decreased by more than 4 percent at the end of the week. The index of medium-sized listed German companies also fell noticeably. The share prices of the engine manufacturer MTU and the airport operator Fraport fell above average.

Over the course of the day, Lufthansa’s shares were down by more than 6 percent. The course then turned slightly positive in the afternoon – a short time later, the airline announced that the flight capacity offered would be reduced even more than previously planned due to the spread of the corona virus. Depending on the further development of demand, capacity should be reduced by up to 50 percent in the next few weeks.

The measure serves to reduce the financial consequences of the slump in demand. It supplements the planned austerity measures in the personnel area, in the area of ​​material costs and project budgets as well as other liquidity measures.

The other European stock exchanges also trended strongly negative. On Thursday, the leading American indices Dow Jones and S&P 500 were already down more than 3 percent. The surprisingly significant cut in the key interest rate by the US Federal Reserve this week had at least had no lasting effect on stock prices.

The situation is different on the bond markets, especially sovereign debt. Not only did the government bonds, which are considered to be fail-safe, rise and their yields fell in mirror image. The yield on ten-year French government bonds fell to minus 0.364 percent, the lowest level ever. “The
In this situation, investors hamster everything that promises security in the event of a worsening crisis, ”said bond expert Elmar Völker from LBBW. The gold price rose more than 1 percent to $ 1,690 per troy ounce (31.1 grams), the highest level in seven years.

The yield on trend-setting government bonds is also falling in the United States: last week, the yield on ten-year American government bonds, which is an important guide for financial markets around the world, fell below the 1 percent mark for the first time. On Friday, the yield was only 0.7528 percent.

The Fed’s rate cut on Tuesday made a significant contribution to this. UK and Australian government bonds also hit record lows. Conversely, risk premiums for companies are increasing in the markets for risky bonds and credit default swaps (CDS). The Markit iTraxx Europe Crossover index, which measures the hedging costs of European companies, rose to its highest level since June 2016.

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Deutsche Börse presents new sustainability index

Frankfurt They don’t like baking small rolls at Deutsche Börse, one of the largest European exchange operators. “We are convinced that the Dax 50 ESG will become the standard for sustainable investments in Germany, ”said Stephan Flägel on Wednesday in Frankfurt.

He heads the index division at stock exchange subsidiary Qontigo, which among other things manages the index families Dax and Euro Stoxx. Now there is a new addition: the Dax 50 ESG.

50 stands for the stock companies represented there, 20 more than in its big brother, the leading German index Dax. ESG stands for ecological, social and governance criteria, i.e. values ​​of good corporate governance, which should play a particularly large role for inclusion in the index. “The index meets the criteria that institutional investors and private investors place equal value on today,” says Flägel.

In plain language means: Investors who want to invest in German companies that are particularly ecological and responsible should take advantage of the Dax 50 ESG in the future. At least when it comes to the Deutsche Börse. In the coming weeks, the first provider wants to launch a corresponding fund that tracks the index, it is said.

The question arises which companies are included in the Dax 50 ESG. The companies are selected from the 89 values ​​of the three major indices Dax, MDax and TecDax, i.e. the leading, average and technology index of Deutsche Börse. There are exclusion criteria: companies that produce so-called controversial weapons, operate significantly with coal and nuclear power and have serious governance problems are dropped.

Due to this narrow negative catalog, only four DAX companies failed from the start: Energy companies are not represented in the new index Eon and RWE because of their coal and nuclear business, MTU because of its military production and Volkswagen due to the non-transparent handling of the diesel scandal.

Market capitalization as an important criterion

The candidates remaining after the negative test generally have the chance to land in the Dax 50 ESG. They are then selected according to the following criteria: market capitalization, exchange turnover and a sustainability rating that the German Stock Exchange sourced from the specialist provider Sustainalytics.

Example Dax company: Based on these positive criteria, only three companies in the leading German index missed the Dax 50 ESG: the medical technology company Fresenius, the housing group Vonovia as well as the payment processor Wirecard, Why remained unclear. The stock exchange representatives could not explain the exact reasons for the non-move at the press conference on Wednesday.

The remaining team of the Dax, i.e. 23 of the 30 values, can be found completely in the new sustainability index. This leads to the curious situation that the largest values ​​in the Dax also represent the largest values ​​in the Dax 50 ESG: the chemical giant Bayerwho is struggling with the controversial Monsanto takeover, also Allianz, SAP, Linden and Siemens, The car manufacturer is also prominently represented Daimler, despite the diesel scandal.

According to Flägel, the main reason for this picture is the strong weighting of the market capitalization criterion: This was the way large investors brought it to the stock exchange, he explained. As a result, the composition of the new sustainability index does not differ fundamentally from the previous structure in the Dax, MDax and TecDax. The top dogs of the German economy are almost entirely included in the new “Standard for Sustainable Investments in Germany”.

Criticism of this concept comes from environmental associations. This is how Lia Polotzek, financial expert of the German Federation for the Environment and Nature Conservation, calls the Deutsche Börse approach “eyewashing”. “The new sustainability index is nothing more than green packaging. The index does not finance a transformation process towards a climate and environmentally friendly economy, ”Polotzek told the Handelsblatt.

“Included are environmentally harmful chemical, cement and aviation industry values ​​as well as with BASF a company whose wholly owned subsidiary Wintershall adorns itself with being the largest German oil and gas producer. That is anything but sustainable, ”she said.

Kristina Jeromin, Head of Sustainability at Deutsche Börse, can understand such criticism in principle: “The financial sector is part of the social sustainability debate and reflects it. There cannot be changes overnight. ”The decision was made to deliberately map the breadth of the market with the index – but at the same time paying particular attention to companies that promoted the transformation towards a sustainable economy.

“If we had taken out all companies that do not already meet the requirements of the 1.5-degree target in the fight against global warming, there would be practically no value in the new index,” explains Jeromin. In the coming years, however, the ESG criteria would increasingly become the standard when investing.

Deutsche Börse plans to launch a double-digit number of additional sustainability indices in 2020. Then also with harder ones Criteria for particularly ecologically oriented investors, that is the promise in Frankfurt.

More: French money house Natixis has developed a radical approach to greener finance. The concept is highly controversial in the industry.

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