The ATX moved on red territory in early trading and initially maintained its negative trend. In the course of the morning, however, it compensates for its losses and moves in a narrow range around the zero line.
The start of the week was calm for the time being. Important company news was not available and the European stock exchange environment did not provide any clear impetus either.
A quiet trading day is also expected on other markets. Market-moving economic data are not due, and in view of new lockdowns and feared unrest, many investors should wait for the time being before the inauguration of the future US President Joe Biden. After all, the US holiday Martin Luther King Day should also be reflected in lower stock exchange turnover in Europe.
Investors in the German stock market are holding back at the start of the week.
The DAX opened the session on Monday, 0.62 percent lower at 13,701.98 points, but is now close to its closing price on Friday.
Investors stay under cover at the beginning of the week before important events. In the corona crisis, there are signs of further aggravation in Germany and the transfer of power is approaching in the USA. Against this background, the DAX continued its price slide from last Friday with further moderate losses.
The US benchmark index Dow Jones Industrial was ultimately unable to reduce its losses on Friday after trading closed in Europe. Impulses from New York will be missing this Monday. Two days before the inauguration of US President-elect Joe Biden, no action takes place there on Martin Luther King Day.
The federal and state governments want to discuss the corona situation in Germany this Tuesday. Further action is expected to be taken. “Investors are now asking once again whether the current stock market prices are actually justified,” explains portfolio manager Thomas Altmann from asset manager QC Partners am Morgen. In any case, the 14,000 points that the DAX exceeded at the beginning of the year are history.
The re was positive news from China on Monday, which gives hope for German exports in times of crisis. Despite the burdens from the corona pandemic, the local economy achieved significant growth in 2020 that exceeded expectations. In Asia, the stock exchanges in Shanghai and Hong Kong went up on Monday.
On the corporate side, attention is slowly being drawn towards the reporting season, which was last ushered in the USA with the first figures from large banks. On Monday, small caps with statements about their business development will be the focus.
US stock markets were weaker ahead of the long weekend.
The Dow Jones went into the day already in the red and remained on red territory. At the closing bell, the US leading index showed a discount of 0.57 percent to 30,814.26 points. Also the NASDAQ Composite fell – most recently 0.87 percent to 12,998.50 points.
The corona aid package with a volume of 1.9 trillion dollars announced by the future US President Joe Biden did not trigger any euphoria among stock investors. Instead, investors asked who would pay the bill afterwards. “
The scope is obviously surprising on the upside. With the Senate majority, tax increases could come in the medium term, and that’s something the market has to take into account,” said investment strategist Wei Li of BlackRock.
Biden wants to close tax loopholes in order to put the state finances in order. “But higher corporate, income and capital gains taxes are at some point inevitable for an economy with a national debt of well over 100 percent of GDP,” ING economist James Knightley blows in the same horn.
The day before, data had revealed the highest increase in weekly jobless claims in the US since the pandemic began in March 2020. “When you see such bad data, one has to wonder whether the prevailing expectation that a cyclical recovery will occur will be shaken,” added Li.
The state of the US economy has been proven by data. Business activity in the New York area, based on the Empire State Index, fell in January, even though economists had bet on a recovery. Retail sales in December also disappointed across the board. After all, industrial production surprised positively in December.
The three US banks JPMorgan, Citigroup and Wells Fargo opened the new accounting season on Friday. Morgan Stanley, Goldman Sachs and Bank of America are next in line.
At the beginning of the week, no uniform trend could be discerned on the Asian stock exchanges.
The leading Japanese index Nikkei fell by 0.97 percent to 28,242.21 points by the end of trading.
In mainland China, the won Shanghai Composite on the other hand, by 0.84 percent to 3,596.22 points.
In Hong Kong he noted Hang Seng ultimately 1.01 percent higher at 28,862.77 units.
While good domestic economic data carried the Chinese stock markets upwards, the latest developments in the corona pandemic weighed on prices elsewhere. Chip stocks came under pressure after Reuters reported that the outgoing US government revoked some companies’ licenses to supply the Chinese telecommunications equipment company in connection with espionage allegations against Huawei.
The Chinese economy grew by 2.3 percent last year, despite the Corona crisis, as the statistics office in Beijing announced. In the fourth quarter, growth recovered to 6.5 percent. That was not only the strongest final quarter in two years, but also more than economists had expected with an average of 6.0 percent.
The industrial production of the People’s Republic rose in December compared to the previous month by 7.3 percent and thus also exceeded expectations.
In Japan, observers pointed to the increasing number of corona infections and the deaths associated with them. Investors feared companies would revise their earnings forecasts as a result, it said.
Finanzen.at / APA / Dow Jones Newswires / dpa-AFX
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