Dow Jones, Nasdaq, S&P 500: Oil price chaos leads to further losses on the US stock exchanges

Oil prices have not yet recovered after the historic crash. This puts pressure on the three most important US indices, they close in the loss zone. .

Short ETF speculation is tricky

Bull and bear on the edge of a crumbling cliff

To bet on price losses on the stock exchanges is only worthwhile in the short term.

(Photo: imago images / Ikon Images)

Equities, oil, gold – a look at the fund balance sheet for the first quarter shows that the bottom line is that investors have lost a lot of money in most asset classes. Investors who bet on falling prices have made money, but these bets are tricky.

So-called short ETFs are one way of speculating on falling prices from indices. These exchange-traded index funds reflect the opposite percentage development of indices.

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Jennifer Morgan’s resignation is an image disaster for SAP

SAP

The double leadership at SAP around Jennifer Morgan and Christian Klein failed.

Germany has waited for years, oh what for decades, for a woman to be at the top DaxGroup is moving. Again and again names of promising candidates were circulating, it was of secondary importance who it would be, even in which company. It was just a matter of showing that even with us a woman can make it to the top.

The Dax is the leading German index, the 30 companies listed in the Dax are in the public interest like no other. Even if only 3.5 percent of all employees work there. Your bosses are heard everywhere.

And so October 11, 2019 was an important day for Deutschland AG. With the appointment of Jennifer Morgan and Christian Klein as Co-CEOs, the Supervisory Board appointed SAP not only the first Dax boss, but also committed herself to the rather rare – but popular with the software manufacturer – leadership model of the top two.

It was a strong statement of diversity in several ways: An American becomes the co-boss of a technology company founded in Germany, which is now one of the most valuable in the country. The public response was corresponding. In some cases, it bordered on jubilation arias on Morgan, combined with the hope of further promotions of women to top positions in the German economy.

Half a year later, it’s all past. Morgan is leaving SAP, and soon. Off, over, end. So great was the euphoria when she was appointed, so great is the disillusionment. And yes, the disappointment with SAP and the top levels.

Because the official reason that the corona crisis needs “clear leadership responsibility” is thin. Ultimately, it doesn’t matter why the double leadership at SAP failed, or from which side the decision came.

The fact is: it didn’t work and the collateral damage is huge. The signal that the first Dax boss is leaving after a few months and the man stays is devastating.

The filling of the CEO post is the most important personnel, which is often planned and prepared for years. One would think that everything that can lead to separation after such a short time, whether views on key strategic questions or character traits, has been clarified in advance. All the more so in the case of personnel with such an external impact as the appointment of a woman to be the first Dax boss.

Especially since SAP supervisory board chief Hasso Plattner let Morgan and Klein know that both had been “thoroughly prepared for a leadership role at the top of the company” and “complement each other perfectly”. Whatever motivation triggered the separation, it is questionable whether they justify the fatal effect.

More: After a few months, the double leadership broke: Jennifer Morgan leaves SAP, Christian Klein manages the company alone. The personnel raises many questions.

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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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Oil price collapse also pulls the Dax into the red

Dusseldorf The German stock market cannot escape yesterday’s drop in the price of oil. Of the Dax is down 1.9 percent in the first hour of trading at 10,473 points.

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

Why this is relevant: Should the US oil industry with its many smaller companies come under even greater pressure, experts fear a wave of bankruptcies that could possibly also burden the financial sector.

The other burden is the new quarterly figures. Already on Monday, exchange expert Stephan Heibel warned after evaluating the Handelsblatt survey Dax-Sentiment: “Downside potential threatens during the reporting season, because company figures will show the extent of the economic damage of the quarantine measures in the coming days and weeks”.

This forecast became reality a day later: IBM was the first company in the US tech industry to present figures and, due to the extreme uncertainty, canceled all forecasts for 2020. Even if company boss Arvind Krishna emphasized the healthy balance sheet and financial situation of the company. After all, the “high dividend is certain”.

But Wall Street does not want to hear anything about it: the stock plummeted by a good four percent. And IBM paper also fell by around four percent on the German stock market.

In the US, the other technology giants are like Microsoft, Amazon (AWS Cloud), Google Cloud, Alibaba or Oracle will follow in the coming days. They will not be able to avoid every negative trend either.

In Germany, accordingly SAP– Share under pressure, which has to work out two negative reports. In addition to the weak numbers from IBM, the company separates from its co-boss Jennifer Morgan in the midst of the corona crisis. The 48-year-old will leave SAP on April 30.

The share loses 2.6 percent at the opening. The software manufacturer is the most valuable DAX company and, due to its high market capitalization, has the greatest influence of all 30 values ​​on the price development of the stock market barometer.

It doesn’t help that Europe’s largest software company made a significant profit in the first quarter. Between January and March, Walldorf residents earned 811 million euros. SAP had already released preliminary figures and had to cut its annual forecast due to the Corona crisis. The final indicators from SAP corresponded to the preliminary, a dealer said.

The requirements from overseas are weak: the oil price collapse has not only burdened the US stock exchanges, but has also clearly lost the Asian markets. Futures on the US selection index S&P 500 have turned negative after initial gains, signaling a weaker opening of the trade.

Look at the individual values

Drägerwerk: The medical technology manufacturer, which is very busy due to the corona pandemic, has apparently raised new capital. The manufacturer of ventilation machines and other devices for intensive care medicine claims to have gross proceeds of EUR 76.50 million from the issue of around one million preferred shares. The shares were placed with institutional investors by means of an accelerated placement process. The share loses 1.7 percent. Last week had the hedge fund Sandbar Asset Management its speculation on falling prices of the Drägerwerk share has increased to 0.71 percent three freely tradable shares.

Danone: Due to the uncertainties resulting from the corona pandemic, the French food company has now completely withdrawn its already reduced annual targets. The effects of the global shutdown are not foreseeable. In the first quarter, the group posted sales growth of 1.7 percent to 6.24 billion euros. The share loses 0.4 percent.

Sartorius: The laboratory supplier started the year with double-digit growth rates. With an increase in sales of 16.5 percent to EUR 509.9 million, the operating result rose by 20.9 percent to EUR 137.9 million. The Management Board raised its forecast for the full year and increased the share by 4.9 percent.

Look at other asset classes

The price of US oil is after its historic fall into negative territory on Tuesday again climbed slightly above zero dollars. With weak trading, the price of the US WTI futures contract rose by $ 39 in May to $ 0.94 a barrel (159 liters). In contrast, the price of the North Sea variety Brent fell by 3.6 percent to $ 24.67.

On Monday, the oil price in the United States plummeted by just under $ 56 to minus $ 37.63 a barrel (159 liters) due to the coronavirus pandemic, thus falling for the first time in its history.

The pandemic has caused global oil demand to collapse by almost a third. Buyers are faced with the problem that the oil storage capacity will soon be exhausted.

The yield differential remains on the bond market (Spread) between German and Italian government bonds at a high level. With a term of ten years, this value is 2.37 percent. The corresponding Italian bonds are currently returning at 1.944 percent and are approaching their monthly highs.

The European heads of state and government are unlikely to make a final decision about a reconstruction fund at the EU summit. That was what EU diplomats said. Chancellor Angela Merkel had already rejected so-called corona bonds yesterday.

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

What the chart technique says

The leading German index is again approaching its important support zone, which is in the range of 10,391 to 10,279 points. From the second brand, the leading index started its rally in December 2018, which continued until a record high in February 2020. The brand was “confirmed” last Tuesday because the index ended trading right there.

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.

At 11,025 meters there is an important resistance on the top. There is the so-called 50 percent correction of the overarching trend, at which counter-movements very often end. Currently related to the Dax, this means that the downward trend has so far been from the record high in mid-February at 13,795 points to the low point in mid-March at 8255 points.

The 50 percent mark is accordingly at 11,025 points, i.e. exactly in the middle between record high and low point. With the increase to 10,820 points last Tuesday, the index of this brand has already approached.

Should the Frankfurt benchmark break this 11,025 point mark, the next resistance would be at 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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Current Dax rate: Dax gives way slightly

Dusseldorf The German stock market starts the new trading week in a friendly manner, but slips further down the line. In afternoon trading, the leading German index Dax is down around 0.2 percent and is trading at 10,559 points.

The negative signs are increasing: According to a study, the Germans will put more money on the high edge this year. The savings rate is expected to climb to 12.5 percent this year from 10.9 percent in 2019, the economists at DZ Bank calculate. That is the highest private savings rate since 1992.

According to DZ Bank, uncertainties about job security and income prospects in particular contribute to a greater propensity to save. In return, consumption will shrink accordingly.

For example, less durable consumer goods such as cars would be bought. Private consumption in Germany is likely to fall by 2.8 percent, which would be the worst slump since reunification. The slump in consumption increases the proportion of savings in disposable income.

Overall, the disposable income of private households is expected to shrink by 1.1 percent this year, according to the DZ Bank experts. That would be the first decline since the 2009 financial crisis.

And according to the VDMA industry association, machine builders in Germany are increasingly feeling the drop in orders due to the corona crisis. In mid-April, 89 percent of the companies surveyed said they were affected by the effects of the pandemic. Overall, 45 percent of the companies report noticeable, 32 percent of those surveyed even serious order losses or cancellations.

As a result, the prices of cyclical stocks in particular are slipping. Daimler leads the list of losers with a minus of around 2.6 percent, as does the supplier Continental. In return, shares in non-cyclical companies such as the medical technology group Fresenius Medical Care (plus 3.2 percent) and the reinsurer Munich Re (plus 2.5 percent).

Investor sentiment is currently “wait and see neutral”, the possibility of a continuation of the recovery rally is limited in the short term, the risk of a setback is greater. This can also be seen in the current evaluation of the weekly Handelsblatt survey Dax-Sentiment.

Because surprisingly, the investment rate of investors is again at a relatively high level. This can also be seen from the overbought condition of the US selection index S&P 500, which rose too quickly after the price slump.

The insider barometer shows a similar picture, which analyzes the trading of Germany’s board of directors and supervisory boards in the shares of their company. Because with the recovery on the stock markets, insider buying has decreased.

The executives, who know their companies better than anyone else, go bargain hunting if they think their company’s shares on the stock market are undervalued. That is no longer so clearly the case.

Olaf Stotz, a professor at the Frankfurt School of Finance & Management, would only be able to support a new, larger rush of directors and supervisory boards to buy shares in their own companies Dax-Stands around 8500 points expected.

Look at individual values

Deutsche Bank: Germany’s largest money house is preparing for higher credit risks in the wake of the corona crisis. Actually, CEO Christian Sewing had promised a black zero in operating profit for 2020 after a billion minus in the previous year.

However, analysts now expect the bank to face a loss of around two billion euros. The share is down 1.8 percent.

Ceconomy: The restrictions on public life cause Saturn / Mediamarkt’s mother to plummet sales and lose quarterly. These numbers come as no surprise, a trader said. Nevertheless, the share of the electronics retailer loses 3.6 percent.

Philips: The Dutch medical technology group posted a significant drop in profits in the first quarter due to the virus crisis. Philips cited a drop in demand for electric toothbrushes, shavers and other health products as a result of the virus crisis as the reason for the decline. However, the share price rose 5.9 percent.

Look at other asset classes

The fall in oil prices cannot be stopped: In the afternoon, a barrel (159 liters) of the North Sea Brent cost $ 26.73, down 4.9 percent. The price of a barrel of the American grade WTI dropped temporarily by around 40 percent to around eleven dollars, the lowest level in 21 years.

While the slump in demand due to the corona crisis continues, concerns have recently increased on the US market that the oil deposits there may be reaching their capacity limits.

The slump in prices for US oil has thus amounted to almost 75 percent since the beginning of the year. Concerns about crude oil storage caused prices to plummet compared to North Sea oil, where discounts last year were 68 percent.

As market watchers from the Australia & New Zealand Banking Group reported, inventory levels in Cushing, Oklahoma, have increased by a whopping 50 percent since the beginning of March. “We still have hope of a recovery at the end of the year,” said the experts.

The EU summit on Thursday with the discussion on corona bonds has already on Monday impact on the bond market. The yield spread between German and Italian government bonds continues to increase and is now 2.32 percentage points. The yield on ten-year bonds is currently approaching the monthly highs reached last week at 1.940 percent.

This “spread” has become a kind of fever curve in the Italian economy. This risk premium reached a record level of 3.3 percentage points in 2018 when the EU Commission rejected the draft budget for the second time in November.

“Residential properties could emerge from the crisis as winners”

In any case, the Italian bond market is facing another test at the end of the week when S&P Global reviews Italy’s BBB rating with a negative outlook.

What the chart technique says

Corrections within the overall trend very often end at the 50 percent mark. Currently related to the Dax, this means that the downward trend has so far been from the record high in mid-February at 13,795 points to the low point in mid-March at 8255 points.

The 50 percent mark is accordingly at 11,025 points. With the increase to 10,820 points last Tuesday, the index of this brand has already approached.

Should the Frankfurt benchmark break this 11,025 point mark, the next resistance would be at 11,266 points, the August 2019 interim low.

The important resistance zone is in the range of 10,279 to 10,391 points. From the first-mentioned brand, the leading index started its rally in December 2018, which continued until a record high in February 2020. The brand was “confirmed” last Tuesday because the index ended trading right there.

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.

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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Oil price crash pulls Wall Street down

Wall Street

The corona virus and its further effects on the economy are still the focus of the US stock exchange.

(Photo: AP)

Dusseldorf At the beginning of the new trading week, Wall Street suffered significant losses. The Dow Jones slipped almost two percent shortly after the start of trading to 23,873 points.

The broadly chamfered S&P 500 also fell by around two percent to 2,830 points, the Nasdaq composite index slipped to 8,559 points, making it a good one percent in the loss zone. About an hour later, the prices of the indices recovered only slightly.

Last week, Donald Trump’s exit strategy from the corona crisis and the prospect of a drug against the virus had given hope to US investors. Over the course of the week, the Dow had risen by 2.2 percent, the S&P by three and the Nasdaq 100 index by 6.1 percent.

The slide on Wall Street is due in particular to falling oil prices. Monday is the Prices for US crude oil plummeted. A barrel of West Texas Intermediate (WT) fell up to 40 percent to around $ 11 – the lowest in over 21 years. This continues the drop in oil prices. A decline of almost 85 percent has been recorded since the beginning of the year.

The fall in prices can be justified in particular by the high oil stocks in the USA. In addition, there is the situation with futures contracts for crude oil deliveries. The June contract for the US variety WTI slipped 6.5 percent to $ 27.52 and the May future, which expired on Tuesday, even fell by almost a third to $ 12.41. WTI was last that cheap 21 years ago.

In the wake of another drop in the price of crude oil, the stocks of the oil companies are also coming under pressure. For example, the papers of companies like Apache, Marathon, Hess and Schlumberger dropped by up to 8.3 percent at times, but were able to recover. The titles of the oil multinationals ExxonMobil and Chevron lost around three percent.

In the Medical technology company Co-Diagnostics those responsible are happy about the consistently high demand for corona virus tests. This creates a good mood among investors. The company’s paper rose 15.3 percent to $ 15.10 after gaining 11 percent in pre-exchange US business. The price has roughly doubled since the beginning of the month.

With agency material.

More: Read here how the German stock market developed on Monday.

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Investors are heavily invested, increasing the risk of a setback

Dusseldorf With regard to the stock market, investors are currently asking three questions: Has the worst survived on the financial markets? Is it time to buy the stocks that sold the most? Or should the recovery be used to make the portfolio crisis-proof for the next low blow?

Sentiment expert Stephan Heibel describes the current mood as “wait and see neutral”. The owner of the analysis house Animusx evaluates the weekly Handelsblatt survey on stock market sentiment, called Dax-Sentiment, among more than 3500 investors.

As long as the facts about the future easing measures and the economic effects do not become clearer, Heibel’s view should not see any major swings in one direction or the other: “Downside potential threatens during the reporting season, because company numbers will become the extent of the economic trend in the coming days and weeks Show damage to the quarantine measures. “

However, the sentiment analysis this week does not provide a clear recommendation to investors’ questions. “Gains in prices such as the opening on today’s trading day are an opportunity to sell one or the other position in the portfolio in order to have enough cash for subsequent purchases in the event of a setback,” says Heibel.

After the panic mood in March followed the bargain hunters, who are currently taking their speculative profits with them. Now the Dax has left its sales level again. If prices continued to rise, individual stocks and sectors would again be overvalued in Heibel’s view.

Among other things, the investment quota is queried in his more extensive Animusx sentiment survey. This rate is already back at a relatively high level. Many investors are already heavily invested again, as the overbought constitution of the US stock barometer S&P 500 shows, which has risen too high too quickly. “This means that the possibility of a continuation of the recovery rally is limited in the short term, the risk of a setback is greater,” explains Heibel. Because if many investors are already heavily invested, few potential buyers remain.

Results of the current survey

Overall, the mood among investors is divided: relief on the one hand that Chancellor Angela Merkel took the direction of “easing” on Wednesday. Disappointment on the other hand about the moderate steps.

This can also be seen from the current results of the Handelsblatt survey Dax-Sentiment. The panicky mood of the previous weeks has evaporated, but nobody can really be happy about the low stock market level. The short-term sentiment is neutral.

Accordingly, complacency is not yet back. Uncertainty remains a dominant feeling among investors, because politicians have only announced action “on sight”. How long will this exceptional situation last? Uncertainty about the answer to this question continues to cause great uncertainty among shareholders.

Investor expectations are also slipping further in the Handelsblatt survey. With a minus of 0.3 the bears dominate over the bulls for the first time since February. Because the hope for a quick end to the measures has been destroyed. Everyone will have to live with the special situation longer than we previously imagined.

Before that, investors hoped for a short shutdown followed by a violent restart including a backlog that should more than compensate for the losses in the second half of the year.

Since this hope has been destroyed, investors no longer want to invest. The willingness to invest has also decreased further. At the end of March, this sub-area of ​​the Dax sentiment reached a historic high of 5.8, since the start of the survey in September 2014, more investors than ever have been invested. Now this value has dropped to just 1.1.

Look at other indicators

The Stuttgart Euwax sentiment, in which private investors trade, has dropped to minus 11.4. That leads to the conclusion: They are buying more hedging products against falling prices again because they fear a second sell-off wave.

The professionals who secure themselves through the Frankfurt derivatives exchange Eurex, on the other hand, are betting on further rising prices. The put-call ratio has dropped to 0.8 and the average is 1.5. Institutionals have bought significantly more calls.

In the weeks before, the hedging positions of investment professionals in the United States were significantly larger than in Germany. But the put-call ratio of the Chicago futures exchange CBOE is currently returning to a normal level.

The investment ratio in US fund manager shares rose only marginally from 27 percent to 29 percent and remains at a historically low level. US private investors remain pessimistic, the bull-bear ratio is minus eight percent.

The “fear and greed indicator” of the US stock markets, calculated on the basis of technical market data, now shows a neutral state of the markets again with 44 percent. Other short-term indicators indicate that a correction in the US equity markets is imminent.

More: Exaggeratedly cheap: Analysts now see these 18 stocks as bargains

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How much dividend does Merck pay?

Will the 2020 Merck Annual General Meeting take place despite the corona virus?

No. The Merck Annual General Meeting is being postponed due to the current corona crisis. A new date has not yet been set.

When did the 2020 Merck Annual General Meeting actually take place?

On April 24, 2020, the Merck Annual General Meeting would have taken place in the Jahrhunderthalle Frankfurt, Pfaffenwiese 301, 65929 Frankfurt am Main.

how high is the Merck-Dividend 2020?

Merck KGaA shareholders proposed a dividend of EUR 1.30 per share for the 2019 financial year.

How high was the 2019 Merck dividend?

The 2019 dividend for the 2018 financial year was EUR 1.25.

When will Merck pay the 2020 dividend?

The dividend is due on the third banking day after the Annual General Meeting.

When does Merck Post share “ex dividend”?

On the first business day after the Annual General Meeting, the share is listed “ex dividend” – the price of the share is reduced by the value of the dividend.

When do I have to buy Merck shares in 2020 to receive dividends?

In order to receive the Merck dividend for the 2019 financial year, the shares must have been purchased at the latest on the day of the Annual General Meeting.

Author: Merck

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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. .