DAX is stuck: Investors continue to search for direction

Market report

As of: October 21, 2021 4:41 p.m.

The ongoing energy crisis and the Evergrande drama are dampening the mood on the stock exchanges. The DAX remains just in the red. Investors are also holding back on Wall Street today.

Yesterday there was a record mood on the New York Stock Exchange. The Dow Jones marked a new high of 35,669 points. But today the record-spoiled investors are taking a breather for the time being. The Dow opened moderately in the red.

As a result, the DAX lacks the necessary momentum. The leading German index stagnates at around 15,500 points. Already yesterday he had barely moved. Even yesterday’s record set by its big brother from America was unable to advance the DAX. On the contrary: At the start of trading, the DAX had rushed down to 15,406 points, but was then able to catch up and even turn positive at times.

High energy prices are likely to depress company profits

The high energy prices and new bad news from the Chinese real estate giant Evergrande are making investors cautious. “Investors worry that the recent price increases on the energy market will not pass without a loss in corporate profits and thus also in economic growth,” says market observer Jochen Stanzl from online broker CMC Markets.

Oil prices at three-year highs at times

North Sea Brent crude temporarily rose to a three-year high of $ 86.10 a barrel (159 liters) before profit-taking began. In the afternoon, the oil price fell 1.2 percent to $ 84.78. However, experts do not expect any major setbacks as supply continues to lag behind demand.

Natural gas and electricity are much cheaper in the US

“The USA also complain about high energy prices, but compared to Germany that is complaining at a high level,” emphasizes expert Stanzl from CMC Markets. “US natural gas prices are only a quarter of what has to be paid in this country. One kilowatt hour of electricity costs the equivalent of twelve euro cents in the US, which is almost a third of the German price.” In other words: The high energy prices in Germany are likely to have a far greater impact on sales and profits than in the USA.

Bad news is also coming from China: The highly indebted China Evergrande group declared the billion-dollar sale of its Evergrande Property Services division to competitor Hopson to have failed and again caused unrest among investors. Evergrande and Evergande Property shares collapsed in Hong Kong as a result.

“The broken deal makes it increasingly unlikely that Evergrande can conjure a rabbit out of his hat at the last minute,” said the lawyer for one of the real estate company’s creditors. Evergrande is therefore still heading straight for a default, has missed several interest payments for offshore bonds, for which the 30-day grace period will soon expire. The first of these payments is due on October 23, that is, this Saturday. Evergrande is in debt to the tune of $ 300 billion. The Chinese Vice Prime Minister Liu He emphasized that the risks in the real estate sector are controllable.

Too many bulls in the market?

Another alarm signal is a recent survey by the American Association of Individual Investors (AAII). Accordingly, the proportion of bulls, i.e. the optimistic investors, skyrocketed from 37.9 to 46.9 percent within just one week. Such a large proportion of bulls reflects the beginning of euphoria. And euphoria has never done the markets any good. Because if investors are already overly optimistic, they are usually already invested. But where should the buyers come from that are needed to drive the markets further up?

Stefan Wolff, HR, with information from the stock exchange

tagesschau24 9:00 a.m., 21.10.2021

Bitcoin targets record highs

After a short break, Bitcoin is again about to jump to a record high. Cyber ​​currency climbs 1 percent to $ 66,647 after beating its previous high of April at nearly $ 67,000 yesterday.

“The appetite for risk seems to be difficult to tame,” says analyst Timo Emden from Emden Research. “Private investors in particular are afraid of missing out on the rally.”

Euro / dollar slightly in the red

The euro has lost its early gains and turned into the red. At the moment the European common currency is quoted at 1.1641 dollars 0.1 percent in the red. After all, it has made up significant ground since its low of $ 1.1523, which was marked in mid-October.

Gold price on course towards the $ 1,800 mark

The gold price is trending sideways. One troy ounce of gold currently costs $ 1,782. “The gold price comes close to the psychologically important USD 1,800 mark and the 100- and 200-day lines that are important for charting purposes. These should, however, be difficult to overcome,” says Daniel Briesemann, commodities expert at Commerzbank.

Gold is receiving support from the continued weakening of the US dollar and comments from various Fed officials who have rejected short-term rate hikes.

Are Audi, BMW and Daimler silvering their map service Here?

According to a press report, the German auto industry wants to list the Here map service on the stock exchange. This should be done by merging with a special purpose vehicle, a so-called SPAC (Special Purpose Acquisition Company) to a high rating, reports the “Manager-Magazin”, citing those involved.

The owners, which include above all BMW, Daimler and the VW subsidiary Audi, had given their okay through the supervisory board, almost all the details had been clarified. They expected the entry-level rating to roughly double.

SAP core business faster in the cloud

The Walldorf-based software giant SAP has increased the pace of relocating its core business to the cloud. The cloud revenues contractually guaranteed for the next twelve months with the flagship product S / 4Hana Cloud rose in the third quarter by 58 percent after adjusting for currency effects to 1.28 billion euros. He expects a further acceleration, said CFO Luka Mucic to journalists.

Gastro recreation benefits Metro

The recovery in gastronomy gave the wholesale group Metro a strong final quarter. Sales rose in the fourth quarter (as of the end of September) by 9.5 percent to 7.1 billion euros and were thus well above the level from before the pandemic. With this, Metro clearly exceeded the expectations of the analysts.

Novartis signs new deal with BioNTech

The pharmaceutical company Novartis and the biotech company BioNTech have signed a new production agreement. As Novartis announced today, the filling and production of the mRNA-based corona vaccine from Pfizer-BioNTech will be expanded. Novartis will use the sterile production facilities at its Ljubljana site in Slovenia to fill at least 24 million cans in 2022.

PayPal plans to acquire billions from Pinterest

According to media reports, the Internet payment service PayPal is planning a billion-dollar takeover of the Pinterest online pin board. PayPal wants to bring the purchase together by the beginning of November and is said to have offered 70 dollars per Pinterest share. With the resulting purchase price totaling $ 45 billion, the deal would be the largest takeover by a social media company to date.

Despite the global chip crisis and delivery problems, the US electric car manufacturer Tesla earned more in the third quarter than ever before in a quarter. In the three months ending September, earnings rose 389 percent year-on-year to $ 1.6 billion. Sales grew 57 percent to a record $ 13.8 billion.

IBM disappoints investors with quarterly figures

The IT infrastructure business of IBM ruined the long-established company shortly before its spin-off. In the division for global technology, which will be called Kyndryl after the spin-off next month, sales in the past quarter fell 4.8 percent to 6.15 billion dollars. The bottom line was that group-wide profits fell by a third to $ 1.1 billion. The cost of separating from Kyndryl came in at $ 500 million.


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