The re is a turbulent roller coaster ride on the German stock market. Within a good two hours, the Dax fell unchecked in the morning by more than 320 points to the daily low of 13,664 points. But then investors took hold.
In midday trading, the Dax climbed back above the 13,800 mark. But with the opening of the US stock exchanges, things went down again. Currently the Dax is back 1.3 percent in the red at 13,756 points. On Monday yesterday, the German share index was 0.3 percent lower from trading, with a final level of 13,950 points.
Despite the significant losses on Tuesday, the correction has remained rather small since the record high of 14,169 points. With today’s low, the maximum minus is only 3.7 percent.
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The food delivery services such as Delivery Hero and Hellofresh are among the clear losers with minus 3.7 and 5.6 percent respectively. In the small value index SDax, online retailers such as Home24, Westwing and Global Fashion fell with a loss in the double-digit percentage range.
Shares in Lufthansa, Fraport and Airbus, on the other hand, are still up, Fraport even climbed by more than nine percent. In the SDax, too, with the steel group Salzgitter, an industrial stock tops the winners list with a plus of 4.7 percent.
One reason the trip values were so in demand is because of the UK’s opening plan. He already had the shares of the low-cost airline Easyjet withdraw by up to 11.7 percent. After the four-step plan was announced, flight bookings had tripled compared to the previous week, the airline said.
However, all sentiment analyzes in this country suggest that new record highs are only a matter of time. According to the analysis of the Sentix experts, there is a tactical buy signal for the Dax, and behavioral economist Joachim Goldberg also sees a good starting position for price gains for German blue chips after evaluating the survey by the Frankfurt Stock Exchange last week.
And for the sentiment expert Stephan Heibel, according to the evaluation of the Handelsblatt survey Dax-Sentiment, the situation looks like this: “In this situation, it takes courage to enter at the current price level.” But this courage could be rewarded if the vaccination situation changes in the next Days and weeks improved.
Whenever prices rise, there is discussion about a so-called bubble in the stock markets, which could soon burst and cause the stock markets to crash. Currently has Ray Dalio, head of the world’s largest hedge fund, Bridgewater, spoke up. Yesterday, Monday, he dug up his “bubble indicator” from the business news service Bloomberg and found that around five percent of the top 1000 companies in the USA are rated at an “unsustainable level”.
The discussion is not new: in January of this year, according to a survey by Bank of America, international fund managers feared the risk of bubbles forming on the stock markets, albeit without a precise definition.
The ir reaction at the time: Despite the risk mentioned, the fund managers were more risk-taking and bought more shares – greed was greater than fear. A procedure that turned out to be correct in retrospect.
It is extremely difficult, actually almost impossible, to find out exactly when such a bubble burst. Especially since there is no precise definition. In the past few months, a high cash quota or speculating on drastically falling prices would have cost a lot of money in the first place.
The focus is on the yield on US government bonds. This value has more than doubled since August last year.
This rise in interest rates is due, on the one hand, to the general economic recovery after the Corona low and, on the other, to the expectation of rapidly increasing inflation.
The value is close to the previous high of the past twelve months, which was reached yesterday Monday at 1.3925 percent. However, it is extremely unlikely that Powell will give signals for a tighter monetary policy.
The then Fed chairman Ben Bernanke had done something like that in May 2013 by announcing that he would reduce bond purchases (“taper tantrum”). As a result, bond prices collapsed and yields soared. This triggered a kind of shock wave on the global financial markets, which led to severe price distortions, especially in the emerging countries.
The graph for 2013/2014 shows that the price slide after the Taper Tantrum at the time was, in retrospect, an ideal time to start.
Look at the individual values
Heidelberg Cement: Despite the burden of the corona pandemic, the building materials group increased its operating profit last year. Adjusted operating profit increased by 6.1 percent to 3.7 billion euros.
The share is down 0.5 percent.
The high customer growth of the Frankfurt online broker suggests that an extremely large number of new traders are involved in the market. “We continue to see an enormously strong development in customer growth and trading activity,” said CEO Frank Niehage. By the end of the year, the number of customers is to increase to 1.8 to two million, from 1.25 million customers at the end of 2020.
The transactions carried out are expected to be between 75 and 90 million in 2021, compared with 75 million last year.
The paper was now more than ten percent in the red, currently it is only 4.7 percent.
The shares of the commercial kitchen equipment manufacturer Rational are heading for the largest daily loss in more than six years. After a cautious outlook, the shares collapse around twelve percent and are thus at the top of the MDax losers. After the sales and profit slump in the Corona year 2020, the group does not yet expect a radical recovery.
Investors take profits with Bitcoin
Investors also cashed in on cyber currencies after they had soared. According to Refinitiv data, Bitcoin has now fallen below the $ 45,000 mark after the oldest and most important digital currency hit a record high of $ 58,354 on Sunday. Meanwhile, the currency is quoted again at 49,000, a minus of ten percent compared to the previous day. “Only very few expected such a panicked correction movement,” said analyst Timo Emden from Emden Research.
The second most important cyber currency, Ethereum, came under pressure and lost around 18 percent. According to the trading platform Binance, the sale of Ethereum has been temporarily suspended due to network congestion.
What the Dax chart technology says
The German benchmark index is currently hanging between two price gaps: Last Wednesday, a small downward price gap was torn compared to the quotations on Tuesday, between 14,050 points and 14,036 meters there was no quotation during regular trading hours. This gap is now considered the first resistance if the Dax should rise again above the 14,000 point mark.
On the downside, the upside gap from late January is still intact to a small extent. Such upward price gaps arise when the highest level on one trading day is below the lowest level on the following day.
The opposite applies to downward price gaps.
This upward price gap in numbers: on Monday last week, the highest Dax price was 13,648 points, the lowest price on Tuesday last week was 13,693 points. With today’s low of 13,664 points, this gap has shrunk to 16 points.
The support, which is even more important from a chart technical point of view, is just below that with 13,500 meters. This mark formed resistance for months last year that was not overcome until December. That is why the resistance has turned into support.
The leading index only fell below this once at the close of trading this year.
Here you go to the page with the Dax course, here you can find the current tops & flops in the Dax.
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