Investors seize buying opportunities: First attempt at recovery in the DAX?

Market report

Status: 11/29/2021 7:55 a.m.

Experts expect that the DAX will open more firmly at the start of trading. On Friday, the stock exchanges downright crashed after the Omikron shock.

Shortly before the start of trading, banks and brokers put the DAX around 0.8 percent firmer at around 15,400 points. Last Friday, the leading German index fell by almost 4.2 percent to 15,257.04. The new coronavirus variant initially made hope for new DAX records wane by the end of the year. In November it had reached a high of just under 16,300 points.

While the high inflation rates in the USA and Europe were discussed beforehand, which would make swift countermeasures by the central banks imperative, the new variant could cloud the overall optimistic economic picture again, commented NordLB market observer strategist Bernd Krampen.

Is the crisis an opportunity?

How could it go on? “The Christmas rally was more or less over before the reports about the Covid-19 mutation. Now it has probably finally come to an end,” said Portfolio Manager Thomas Altmann from QC Partners, commenting on the situation.

Neil Wilson, chief analyst of the online broker, however, emphasizes that there are no clear indications that the economic outlook is deteriorating. In addition, at the first sign of serious problems, the central banks would certainly loosen the reins of monetary policy again, or at least not tighten them any further.

“The principle of hope lights up after every correction with the stock market slogan ‘buy the dips'”, which means: “Buy when prices plummet”, says another market observer.

Nikkei continues to sink

In Asia, the stock exchanges continued to fall in the morning: the Nikkei index, comprising 225 stocks, was 1.6 percent lower at 28,283 points shortly before the end. The broader Topix index fell 0.9 percent and stood at 1967 points. The Shanghai Stock Exchange was unchanged. The index of the most important companies in Shanghai and Shenzen lost 0.3 percent.

Interesting economic data is coming up today: First of all, data for the European business climate and consumer confidence is expected. The consumer prices for Germany are published around 2 p.m. The rise in prices has recently been one of the main concerns of investors – the central banks have assured that this is only a temporary phenomenon.

SAP and the cloud

With the focus on the cloud, SAP boss Christian Klein wants to win new investors for the software giant. “We are attracting many new investors who focus on growth and customer success, and that is exactly where our focus is,” Klein told the “Handelsblatt”. In addition, the group has a large customer base in the classic license business. “And I’m sure: SAP will be one of the largest cloud companies in the world in the long term.”

After the announcement of the new strategy around a year ago, the Dax Group’s share price fell by a good 20 percent within a day. Nevertheless, the decision was the right one, said Klein. Companies need to transform, and now everyone can see that the future lies in the cloud. “

Billions invested in Nissan

The Japanese Renault partner Nissan wants to advance the electrification of its car fleet with investments of billions. To this end, two trillion yen (around 15.6 billion euros) will be invested over the next five years.

The new long-term strategy called “Nissan Ambition 2030” includes the introduction of 23 new electric models by the 2030/2031 financial year (April 1). By then, more than half of the global fleet of the Nissan and Infiniti brands will consist of vehicles with electric drive, as the company further announced.

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