DAX expected higher: relief after Evergrande payment

Market report

Status: 10/22/2021 7:50 a.m.

The ailing Chinese real estate company Evergrande surprised positively for a change and made a long overdue interest payment. That should also give the DAX a little boost.

Thanks to good data from Asia, the DAX should start with profits in the last trading day of the week. Banks and brokers are currently assessing the 40 German standard values ​​0.3 percent higher at 15,524 points.

Most recently, the upward correction in the DAX, which had pushed the German benchmark index up to 15,598 points at the beginning of the week, stalled. The DAX closed yesterday with slight losses at 15,472 points.

China Evergrande averts default

Tailwind for the German standard values ​​comes from China at the end of the week. The struggling Chinese real estate developer Evergrande has, according to insider and media reports, transferred $ 83.5 million to a trustee for a bond interest payment due on September 23.

The company has thus averted a payment default shortly before just short. The 30-day grace period for the bond interest payment would have expired on Saturday. If Evergrande hadn’t paid by then, it would have been bankrupt.

Evergrande stocks and bonds are jumping high

“This is a positive surprise,” said James Wong, portfolio manager at GaoTeng Global Asset Management Ltd, adding that many expected a default. The news will boost bondholders’ confidence, Wong said.

The real estate company’s dollar bonds skyrocketed this morning. China Evergrande shares also soared in Hong Kong, most recently up around four percent.

The next interest is due soon

But it is also a fact: after the interest payment is before the interest payment. The next week the next 30-day grace period expires for an interest payment that was actually due on September 30, also for an offshore bond denominated in dollars.

The trembling and fear of investors about the further fate of the Chinese real estate company and its effects on the global financial markets should therefore continue. Even if the latest developments are now providing some relief for investors.

On the Asian stock exchanges, investors breathe a sigh of relief after the Evergrande interest payment. In addition, the increased technology values ​​are stimulating the buying mood of investors. “For the past few days, earnings have been the focus and tech stocks have led the rush,” said Kyle Rodda, market analyst at IG Australia.

Shortly before the close of trading in Tokyo, the Nikkei index, comprising 225 values, is 0.4 percent higher at 28,812 points. The Hang Seng in Hong Kong is also gaining 0.4 percent at the moment.

There are mixed guidelines from Wall Street. Disappointing IBM results yesterday thwarted the leading US Dow index, while a positive reaction from investors to Tesla’s latest balance sheet drove the Nasdaq up.

The Dow Jones closed practically unchanged at 35,603 points. The broad S&P 500, on the other hand, was 0.3 percent firmer on 4549 meters from the trade. The Nasdaq index gained 0.6 percent to 15,215 points.

Gold price targets $ 1,800 mark

The gold price rises slightly in the morning. A troy ounce of the yellow precious metal costs $ 1,787, 0.2 percent more than the day before. Gold is getting closer to the psychologically important 1800 dollar mark and the chart-technically significant 200-day line. In the opinion of raw material experts, however, these are likely to be difficult to overcome. The euro is trading sideways at $ 1.1628 in early trading.

Bitcoin continues to decline

In the morning, the cryptocurrency Bitcoin moved further away from its record high marked over the course of the week. On the CoinMarketCap platform, the cyber currency is listed at just under $ 63.0000. Over the course of the week, Bitcoin had risen above the $ 66,000 mark for the first time after the first Bitcoin futures ETF went onto the market in the United States.

Snap shares plummet

The company behind the popular photo app Snapchat has missed sales expectations with its figures for the past quarter. Snap was the first social media company to share their books this fiscal season. In the aftermath of the hours, Snap shares plummeted up to 30 percent and dragged other social media values ​​down with them: Facebook and Twitter lost six and seven percent, respectively.

The semiconductor giant Intel earns significantly more money amid the global chip shortage. Sales rose in the past quarter by five percent year-on-year to 19.2 billion dollars, as Intel announced yesterday after the US market closed. The bottom line was a profit of $ 6.8 billion – a jump of 60 percent.

L’Oreal increases sales more than expected

The French cosmetics group L’Oreal continued on its growth path in the third quarter. The ongoing recovery in the beauty market increased sales by 13.6 percent to almost 8 billion euros. The North American and Chinese markets in particular developed robustly. With its numbers, L’Oreal exceeded the expectations of the analysts.

Google is lowering the fee for subscriptions in apps

After criticism from software developers and politicians, Google is lowering the fee for subscriptions that are concluded via the group’s app platform. Previously, app developers had to cede 30 percent of the subscription price to Google, after a year the fee fell to 15 percent. Now it will be 15 percent from the start.

Tesla accident not so mysterious

The crash of a Tesla electric car in Texas, which made headlines in April, was, according to the findings of accident investigators, less mysterious than the local police initially thought. The local officials at the time had the impression that nobody was behind the wheel in the accident. The renowned investigative authority NTSB has now come to the conclusion that both front seats were occupied when the impact occurred and the driver pressed the accelerator pedal.


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