This loss in this country corresponded to the minus of two percent in the Dow Jones index. It was more violent on Monday due to the rise in interest rates in tech stocks, the Nasdaq index lost 4.3 percent. In contrast to the Dax, the major US indices also reached new lows for the year on Tuesday. The leading German index, on the other hand, was still around 900 points away from the 12,438 point mark on Monday, the lowest level for the 2022 stock market year.
For Thomas Altmann from the investment house QC Partners, “now is the time for bargain hunters”. Because based on the price-earnings ratio, the Dax is now valued as cheaply as it was last in 2018. Those who dare now have a strong buying argument.
There was support from the economic side. Stock market professionals are no longer quite so pessimistic about the next six months. The corresponding ZEW barometer rose surprisingly in May by 6.7 to minus 34.3 points. In March, due to the Russian invasion, there was the sharpest decline since the survey began in 1991, which was followed by another minus in April. Economists polled by Reuters had expected a further decline to minus 42.0 points in May.
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Banking economists are not yet giving the all-clear. “This slight increase is not a turn for the better,” said LBBW economist Jens-Oliver Niklasch. “Currently, the uncertainty is generally too high.”
Chemical stocks in particular are benefiting from the hope of better economic development, with the shares of the specialty chemicals group Lanxess and BASF each gaining around three percent. The shares of the MDax company Fuchs Petrolub even climbed by almost four percent.
Why the leading German index is stabilizing today also has to do with the sell-off on the oil market. The price for a barrel of the most important brands Brent and WTI slipped significantly in late trading yesterday Monday. Last stood a minus of around six percent on the stock exchange board. Oil prices fell further on Tuesday.
The market conclusion: If the oil price does not continue to rise, this could also slow down the rise in inflation. Which in turn calms the bond market.
Yields on ten-year government bonds in Germany and the USA have fallen significantly from their multi-year highs on Monday yesterday. A ten-year Bund is currently yielding 0.999 percent, yesterday’s high was 1.187 percent. A US Treasury bond is at 2.9477 percent, yesterday’s multi-year high was 3.2026 percent.
Despite today’s stabilization, investors shouldn’t get their hopes up too high that the downtrend seen since the beginning of the year is about to end. This line is currently at 14,170 points and, together with the 50-day moving average, which runs at 14,081 points, forms the first important hurdle on the way up.
The technical analysts from HSBC Germany have examined the Dax as a price index. Because, in contrast to the usual performance index, no dividends flow in, it is considered an “honest Dax” and is therefore more comparable with all other indices worldwide, which are generally price indices.
Their conclusion: the downward trend also dominates in the German price index. Investors should focus their attention primarily to the south. The technical imbalance in this index would only end if the index were quoted above around 5800 points. For this, the “honest Dax” would have to climb by more than five percent at a current price of 5523 points.
Investor sentiment also offers little hope in the short term. Both the Handelsblatt survey Dax-Sentiment from the weekend and the survey by the Frankfurt Stock Exchange from last Wednesday signaled a badly supported bottom. Many investors had used the low prices of the past week to buy shares and are therefore initially not buyers.
The price of the cryptocurrency Bitcoin has reached a new low for the year. The cyber currency has meanwhile fallen below the $30,000 mark. But after the new low for the year of $29,961, there was enough buying interest again, in the evening Bitcoin is trading at around $31,400 on the Coinmarketcap platform.
Look at individual values
Bayer: The quarterly figures are better than analysts had expected. Bayer benefited from strong herbicides and fungicides businesses and higher prices in the agricultural business, but also posted significant gains in over-the-counter health products. The Leverkusen-based company confirmed its forecast for the year as a whole. The share rose by 5.4 percent by the end of trading, making it the biggest daily winner in the Dax.
Munich Re: The war in Ukraine slows things down. The profit in the first quarter was only slightly higher than in the previous year, although the burdens from natural catastrophes and other major losses were significantly lower. The main reason was write-downs of almost 700 million euros gross on Russian and Ukrainian bonds; net of this, 370 million euros remained. Munich Re put the strain on operational business as a result of the Russian invasion of the neighboring country at just over EUR 100 million. The stock closes 1.5 percent higher.
Wacker Neuson: The share of the construction equipment manufacturer is down 6.9 percent. Supply chain issues weighed on margins in the first quarter.
Lufthansa: The airline will buy 17 more long-haul aircraft from Boeing. These are seven 787-9 aircraft, three 777F cargo aircraft and seven 777-8F cargo aircraft. In addition, the lease agreements for two 777F cargo aircraft, which run until 2024, would be extended. The stock loses 1.4 percent.
verb: The price slide at the biofuel manufacturer continues. After falling more than 60 percent since April 20, the price slipped by more than five percent by the end of trading today, Tuesday. The company was still a top performer in February and March. But the reasoning behind the bull market is under attack: development and environment ministries are calling for the end of bioenergy from food. The result: a crash.
Siltronic: The MDax share closes around three percent in the plus. The failed takeover by Globalwafers brought the chip supplier special income of 50 million euros in the first quarter. The high result thanks to the termination fee is spurring on the share, said a trader.
Schaeffler: The company presented significantly better figures at the start of the year than feared. The shares of the auto supplier go up by 2.5 percent until the end of trading.
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