Status: 01.03.2021 16:21
In the afternoon, the optimists continue to have an advantage in the stock market. The DAX wins, but struggles with 14,000 points.
In a countermovement, the German leading index DAX recovered on Monday from the previous week’s losses. The index, which had risen to 13,996 points and therefore just below 14,000 points, is currently around 1.2 per cent higher and slightly above 13,950 points. The round mark remains stubborn resistance on the way to the DAX’s record high with 14,169 points.
All eyes on the central banks
Just a snapshot, or is there something else? The fact is that central banks are currently on track to recover dubious investors. Because new fears about inflation and rising yields on associated bonds have recently hit the market and are likely to remain very much on the minds of investors. However, the bond market has calmed down currently. Because German government bonds have risen in price today. In return, the current yield fell from at least 0.32% on Friday to at least 0.36%, as announced by the Deutsche Bundesbank in Frankfurt.
“I have little doubt that central banks will eventually resist a sustained rise in yields,” said Jim Reid, strategist at Deutsche Bank. Given the high level of debt, high yields simply cannot be afforded.
Inflation is rising
Speaking of inflation: consumer prices in Germany rose sharply in February due to more expensive food and fuel than they did since the start of the Crown crisis almost a year ago. Goods and services cost an average of 1.3 percent more than a year earlier, as announced by the Federal Bureau of Statistics in its first estimate in the early afternoon.
“The temporary rise in inflation to just under three per cent in the second half of the year is not a cause for concern,” said director Sebastian Dullien of the IMK Institute in Düsseldorf. “Inflation will fall again in early 2022, because then the effect of the VAT reduction will expire.” Economists expected inflation of 1.2 percent for February, after 1.0 percent in January.
Today comes good news from German industry. Despite the disrupted supply chains, things went better in February than for more than three years. The purchasing managers index rose from 3.6 to 60.7 points in the middle of the second wave of the crown, the IHS Markit Institute announced today for the survey of hundreds of companies. Thus, the barometer remained well above the 50 mark, from which it signals growth.
Focus on the discussion about relaxation
In addition to the debate over interest rates, the crown situation will of course continue to be accurately recorded on the stock market. For now, everything revolves around the degree of relaxation in the country, which also feeds the current good humor. The prime ministers of the federal states and the federal government will meet on Wednesday to make new decisions. Confidence is also backed by the new US-approved pharmaceutical giant Johnson & Johnson’s Covid vaccine.
In the case of individual DAX shares, the benefits go to all industries. Bayer and MTU Aero are especially in demand. The engine manufacturer benefits from the discussion about relaxation. In contrast to the trend, Infineon and Continental are slightly weaker in the market.
Win on Wall Street
The domestic stock market is getting the tail wind from New York. In the first minutes of trading, all major stock indices rose by about 1.5 percent. The market welcomes the fact that the $ 1 billion government aid program has now been launched with the approval of the House of Representatives.
U.S. President Joe Biden called on the Senate to quickly approve the stimulus package he proposed against the crown crisis. In the Senate, Biden Democrats and Republicans each have 50 seats, while Vice President Kamala Harris – who is also Speaker of the House – can cast the casting vote at a standstill.
The euro a little weaker
Stock prices are also fueled by a weakening euro. More recently, the common currency cost $ 1.2035. The euro gave way to all major currencies. Thus, he continued his recent losses. Despite the best encouraging figures, the economic outlook for the eurozone is considered darker than in the United States. Crown vaccines are also much slower. The economy is also being supported by financial aid less than abroad.
Bitcoin is on the rise
Bitcoin is also recovering. The oldest and most important cyber currency increases significantly to over $ 48,000. “This puts the $ 50,000 psychological mark back on track,” says analyst Timo Emden of Emden Research. “The bargain hunter mentality should tip the scales.”
Oil lags behind
Oil prices have turned negative today after the first rises in the afternoon. Prices were initially driven by the good mood of the stock markets. Oil is one of the riskiest investments driven by rising stock prices. On the other hand, the stronger dollar, which made the commodity traded in US currency more expensive for investors outside the dollar zone, is causing some negative effects. This weighs on demand.
Throughout the week, the policy of promoting the large Opec + oil network is increasingly focused on the focus. The merger must decide its future production. Currently, supply remains artificially scarce to support crude oil prices, as demand has been weakened by the Crown crisis.
Warren Buffett buys his own shares
Warren Buffett’s investment company, Berkshire Hathaway, repurchased Crown shares for more money than ever. In total, the conglomerate spent $ 24.7 billion on this type of price maintenance, according to Berkshire Hathaway’s annual report. In the fourth quarter, the 90-year-old star investor’s stake put $ 9 billion in its own shares, which was almost exactly the record volume of the previous quarter. Berkshire Hathaway was able to sharply increase net profit at the end of the year.
The Johnson & Johnson vaccine has been approved in the US
With the vaccine from the American company Johnson & Johnson, in the future it will be possible to use a third vaccine against the crown in the USA. On Saturday, the U.S. Food and Drug Administration (FDA) issued emergency approval for the drug. It develops its full effect after the administration of a dose and, unlike the other vaccines used, it should not be injected twice. U.S. President Joe Biden spoke of “exciting news for all Americans and encouraging development in our efforts to end the crisis.”
Global Fashion Group inspires investors
Online fashion retailer Global Fashion Group (GFG) plans to grow strongly during the current year. The net value of goods (NPV) will increase by one quarter to 2.5 billion euros. Sales are expected to be ten percent higher, with good 1.5 billion euros, and profits are expected to increase moderately. Last year, the company focused on emerging markets was able to increase the net value of goods by a good ten percent to almost two billion euros, while sales grew by one percent up to 1.36 billion euros.
Financial services provider Hypoport disappointed
Financial services provider Hypoport disappointed investor expectations during the Crown year despite significant increases in sales and operating profits. According to preliminary calculations, sales did not reach the targets set, despite an increase of 15% to 387 million euros. Management had promised between 400 and 440 million euros. Operating income (EBIT) increased by ten percent to 36 million euros and was therefore below the expected range of 35 to 40 million euros. The share price of the company listed on the SDAX fell significantly.