Dax current: Dax is giving way significantly – cyclical stocks come under pressure

The release of new data illustrates the extent of the corona crisis. The savings rate is increasing and consumption is likely to shrink significantly. .

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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Varta shares become the game ball of hedge funds

Dusseldorf The German Leading index Dax closed with a slight plus on Thursday. It closed 0.2 percent higher at 10,300 points. By early afternoon, the Dax had consistently posted a plus of around one percent. Then, however, he had turned negative in the meantime and then only recovered slightly.

In the afternoon, new, weak economic data was presented in Washington: Initial jobless claims last week totaled 5.245 million, a figure of 5.105 million was expected. The US stock exchanges were then initially turned negative. Recently, however, only the Dow Jones was slightly below the previous day’s level.

“The labor market in the USA is particularly hard hit by the pandemic and the associated restrictions on public life,” said the analysts at Landesbank Helaba. A total of approximately 22 million people have applied for financial support in the past four weeks.

The Philadelphia Region sentiment barometer has also weakened significantly and is even well below expectations. The index had already deteriorated significantly in March and is now at the lowest level since the mid-1980s. According to the Helaba analysts, economic worries are becoming greater as a result of the data release.

The Dax had reversed yesterday after a five-day recovery and went out of business with a minus of 3.9 percent at 10,279 points. According to chart technology, the Dax achieved a spot landing: from 10,279 points, the index started a rally in December 2018, which continued until a record high in February 2020.

A particularly interesting share is that of Varta, because the game of hedge funds with the title apparently continues. Today, Thursday, the paper rose by 6.7 percent to EUR 72.75, leading the list of winners in the MDax by far. This is no surprise, even if the share certificate at the close of trading was only 3.8 percent up: Five hedge funds are now under pressure to buy around 2.6 million shares. They may have started this Thursday.

Because the funds sold the Varta share short, as it is said in technical terms. So you’re betting on falling prices on paper. To this end, they have borrowed and sold 2.6 million Varta shareholders such as investment funds. But in order to return these shares, you have to buy them again beforehand. Of course, if possible at a lower rate.

With an average trading volume of around 272,000 shares per day in the past month, this buyback has to be carefully dosed so that the Varta price does not rise rapidly and puts pressure on the hedge funds. Because they want to buy back the papers cheaply.

Incidentally, this also explains the drop in yesterday’s Varta share of just under nine percent on Wednesday: the hedge fund Tiger Global increased its short sale rate from 1.06 percent on Tuesday to 1.16 percent on Wednesday.

With 40,421 million freely tradable shares, he borrowed an additional 40,421 papers and sold them on the day. With a total trading volume of 320,000 units on Wednesday, this sale is likely to have influenced price development.

With such figures, an analyst should say: only the fundamental values ​​are important.

According to the investor survey conducted by the Frankfurt Stock Exchange, the Dax is likely to buy again below 10,000 pointssays Joachim Goldberg after evaluating the survey on Wednesday evening. According to this survey, the mood has dropped significantly despite the rising prices, the Sentiment Index of the Frankfurt Stock Exchange has even dropped to the lowest level since the beginning of the 2002 survey.

To put it simply, negative sentiment is – according to sentiment analysis – a contraindicator because many investors have already sold.

The behavioral economist is also expecting further demand if this recovery rally should continue. “Above all beyond the 11,000 mark” there could be a sudden, rapid rise in prices (“short squeeze”) because investors would then have to buy more. But the Dax is still a long way from this point.

Look at the individual values

Zalando: The coronavirus pandemic is affecting Europe’s largest online fashion retailer. As a result of the weaker growth wants Zalando save now in the current year. Marketing and general costs are to be reduced by 250 million euros and investments by 100 million euros. Nevertheless, the company listed in the MDax average index wants to stick to its original plans and expand its luxury segment and also include second-hand goods in its range. Investors are happy about this news, the stock gained 6.2 percent on Thursday.

Easyjet: The company sees itself prepared for a longer standstill of its fleet and is pleased with its shareholders. At the start of trading, the paper gained more than ten percent and was the frontrunner on the London Stock Exchange. Most recently, however, the paper was down 2.5 percent. The low-cost airline expects to be able to survive a longer break. In addition, the bookings for winter are better than last year.

Look at other asset classes

The gold price put in its upward trend a little breather, but was recently back up 0.4 percent at $ 1,723 per troy ounce.

A side note: Because of the corona virus, the US Mint has to temporarily close its plant in New York. According to the Commerzbank– Commodity analysts are short of gold coins in particular and are distorting the gold market in the United States.

According to a coin dealer, the premiums for gold coins are already five to ten percent above the spot price of gold. After a long dry spell, the Americans bought as many gold coins in March as they did last in November 2016 at 151.5 thousand ounces, according to data from the US Mint. Demand continues: in April it was 56.5 thousand ounces again.

The bond market clearly shows: The decisions of the finance ministers last Thursday to deal with the corona crisis have no effect. The government in Rome will not apply for an ESM package. Accordingly, yields on Italian and other government bonds have risen significantly again.

Although the yield on a ten-year government bond falls to 1.805 percent, the market should soon test the reaction of the European Central Bank: when will it react to this with higher bond purchases? The yield spread (spread) between a German and an Italian government bond has increased to 240 basis points in the past few days, but is currently only at 228 basis points.

Oil prices recovered slightly on Thursday from the significant losses of the previous days. In the afternoon, a barrel (159 liters) of North Sea Brent cost $ 27.63. The price of a barrel of American WTI was little changed at $ 19.97. In the meantime, the price of US oil had dropped to $ 19.20, the lowest level since 2002.

“The oil price is at a low point, but the market could pick up again in June”

The oversupply of crude oil continues in the meantime, and the cut in production agreed by leading oil nations does not come into force until May. As the U.S. Department of Energy announced on Wednesday, stocks in the U.S. have grown significantly more than expected last week. According to the Ministry of Energy, inventories rose by 19.2 million to 503.6 million barrels. This is the strongest increase ever measured.

At the same time however, the Organization of Petroleum Exporting Countries (Opec) predicted a drastic drop in oil consumption due to the corona crisis. As can be seen from the monthly report published in Vienna on Thursday, the oil cartel is expecting the weakest demand for Opec oil in the second quarter in around 30 years.

Dealers still expect no short-term relaxation on the oil market. “In the short term, the market will remain flooded,” said Torbjorn Tornqvist, managing director of the oil dealer Gunvor Group.

What the chart technique says

According to technical analysis, the leading German index is now testing the important key support below the 10,300 point zone. On the one hand, the striking low of December 2018 with 10,279 points is important, the starting point for the rally, which lasted until the record high in February 2020. 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 recent recovery rally 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 closes more than one percent in the plus

Dax curve

View of the Dax curve in the Frankfurt trading hall.


(Photo: dpa)

Dusseldorf The leading German index rose by almost 1.3 percent from trading and closed the day at 10,696 counts. So that is the Dax currently not to brake

However, there was no trading on the Xetra platform for more than four hours. The reason for the interruption was a technical problem with the electronic trading system T7, said a spokesman for the German stock exchange. “An error in the internal communication of the trading system triggered the problem.”

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Xetra disruption: criticism after hours of failure

EThere has never been such a long failure on the German stock exchange in the recent past. Almost nothing lasted for almost four and a half hours on Deutsche Börse’s two most important trading systems, Xetra and Eurex. From 9 a.m. to 9.25 a.m., the leading index Dax had just started to recover after the long Easter weekend. From then on, the “curve” on the large display board in the Frankfurt trading hall moved sideways for the time being, the most important German share index, the Dax, remained at the 10,675.93 points it had achieved so far.

Tim Kanning

When the trade started again, the Dax continued on its recovery course taken before the Easter holidays. In the late afternoon, the stock market barometer rose by around 2.3 percent.

“Technical disruption,” it said succinctly from the German stock exchange, and that one is working on the solution of the problem. Such faults are not that rare, but the problems are usually resolved after an hour at the latest. Trading on the stock exchanges in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta is also affected, since these exchanges also use the Deutsche Börse trading system.

Lucky coincidence

The reactions of trading participants were mixed. At the request of the F.A.Z. Benjardin Gärtner, head of equity portfolio management at the fund company of the Volks- und Raiffeisenbanken, Union Investment: “The technical problems and the impairments are unpleasant,” he said. “Smooth trading is very important to us at all times. Today we can be happy that the great unrest on the stock exchanges of the past few weeks with the high volatility in equities is behind us.

It sounded similarly for Eric Böss, who heads global trading at Allianz Global Investors and who also referred to the comparatively calm trading trend: “The markets that were still open, including the American futures, showed little movement and we were therefore not forced to deal with extremely thin liquidity trade. ”The orders from the morning were then simply processed in the afternoon. But Böss also pointed out that it could have been very different on many of the past trading days: “It was a happy coincidence that the default did not take place on a day with the current volatility.”

It was not until 1:20 p.m. that Deutsche Börse gave the all-clear and prepared the trading participants for the restart of the systems at 1:50 p.m. Here, too, the reasoning remained vague: the problem arose in the T7 trading system, which both Xetra and Eurex use. “An error in the internal communication of the trading system triggered the problem.” The Dax then started at 35 points above the level at which it got stuck. During the past trading days, around 1 million transactions had been carried out via Xetra, so it had only been around 240,000 by the afternoon due to the long interruption.

Damage difficult to prove

Does a shareholder simply have to accept such a trade interruption? After all, on days with high volatility, high losses can quickly arise if you cannot sell at the desired time. Shareholder protector Klaus Niedung from the German Association for the Protection of Securities generally sees a right to compensation if the stock exchange simply refers to a technical malfunction.

For small shareholders, however, it is hardly demonstrable how exactly the concrete damage looks and that it actually arose from the loss of trading. The effort would be too high due to the low sums in question. Large institutional investors would, however, sometimes complain if such trade interruptions occurred.

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Criticism of the stock exchange after hours of failure

EThere has never been such a long failure on the German stock exchange in the recent past. Almost nothing lasted for almost four and a half hours on Deutsche Börse’s two most important trading systems, Xetra and Eurex. From 9 a.m. to 9.25 a.m., the leading index Dax had just started to recover after the long Easter weekend. From then on, the “curve” on the large display board in the Frankfurt trading hall moved sideways for the time being, the most important German share index, the Dax, remained at the 10,675.93 points it had achieved so far.

Tim Kanning

When the trade started again, the Dax continued on its recovery course taken before the Easter holidays. In the late afternoon, the stock market barometer rose by around 2.3 percent.

“Technical disruption,” it said succinctly from the German stock exchange, and that one is working on the solution of the problem. Such faults are not that rare, but the problems are usually resolved after an hour at the latest. Trading on the stock exchanges in Vienna, Prague, Budapest, Zagreb, Ljubljana, Sofia and Malta is also affected, since these exchanges also use the Deutsche Börse trading system.

Lucky coincidence

The reactions of trading participants were mixed. At the request of the F.A.Z. Benjardin Gärtner, head of equity portfolio management at the fund company of the Volks- und Raiffeisenbanken, Union Investment: “The technical problems and the impairments are unpleasant,” he said. “Smooth trading is very important to us at all times. Today we can be happy that the great unrest on the stock exchanges of the past few weeks with the high volatility in equities is behind us.

It sounded similarly for Eric Böss, who heads global trading at Allianz Global Investors and who also referred to the comparatively calm trading trend: “The markets that were still open, including the American futures, showed little movement and we were therefore not forced to deal with extremely thin liquidity trade. ”The orders from the morning were then simply processed in the afternoon. But Böss also pointed out that it could have been very different on many of the past trading days: “It was a happy coincidence that the default did not take place on a day with the current volatility.”

It was not until 1:20 p.m. that Deutsche Börse gave the all-clear and prepared the trading participants for the restart of the systems at 1:50 p.m. Here, too, the reasoning remained vague: the problem arose in the T7 trading system, which both Xetra and Eurex use. “An error in the internal communication of the trading system triggered the problem.” The Dax then started at 35 points above the level at which it got stuck. During the past trading days, around 1 million transactions had been carried out via Xetra, so it had only been around 240,000 by the afternoon due to the long interruption.

Damage difficult to prove

Does a shareholder simply have to accept such a trade interruption? After all, on days with high volatility, high losses can quickly arise if you cannot sell at the desired time. Shareholder protector Klaus Niedung from the German Association for the Protection of Securities generally sees a right to compensation if the stock exchange simply refers to a technical malfunction.

For small shareholders, however, it is hardly demonstrable how exactly the concrete damage looks and that it actually arose from the loss of trading. The effort would be too high due to the low sums in question. Large institutional investors would, however, sometimes complain if such trade interruptions occurred.

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