Düsseldorf Investors hope for clarity on Wednesday about the further direction of the German stock market. The leading German index Dax is trading slightly positive in the morning on over-the-counter trading platforms after having left trading slightly on Tuesday. It closed at 12,600 points.
On Monday, the day after a more than one-week correction had gained more than 300 points, and on Tuesday things continued to go well, in which the German stock market barometer passed the 12,700 point mark. Then it went down again.
Fear of a second wave of corona prevailed, and with it the fear of another lockdown, which could paralyze the economy again. Investors therefore opted for asset classes such as gold that are considered safe, driving the price of the precious metal above the $ 2,000 ounce mark for the first time.
German government bonds were also in demand, with yields falling to minus 0.560 percent. Italian bonds also yielded significantly lower at times, at 1.015 percent. “The economy has recovered in recent months, but it remains to be seen whether the geopolitical situation and isolated, targeted new restrictions will continue,” warned Elwin de Groot, strategist at Rabobank. “We are already trading at a high level in the stock markets, from now on it will be more difficult.”
This Wednesday, the quarterly figures of companies are likely to be the focus again. So investors should look forward to what a high loss BMW against the background of the corona crisis. Even the numbers from Continental should look less pleasing.
1 – Trade in the United States
The dispute between the United States and China – this time about the Tiktok video service – is causing a stir on Wall Street investors. However, hope of a further Corona aid package after nationwide unemployment benefits expired prevented losses. The negotiators would now “work around the clock” and would have a schedule to reach a preliminary deal by the end of the week “so that the law can be passed next week,” said Treasury Secretary Steven Mnuchin on Tuesday.
The Dow Jones ultimately gained 0.6 percent to 26,828 points. The technology-heavy Nasdaq advanced 0.4 percent to 10,941 points, as did the broader S&P 500 to 3307 points.
2 – Trade in Asia
The Tokyo stock exchange was initially weaker on Wednesday. The 225-value Nikkei index was 0.2 percent lower over the course of the year at 22,533 points. The broader Topix index fell 0.1 percent to 1554 points. The Shanghai stock exchange was up 0.3 percent. The major companies index in Shanghai and Shenzhen gained 0.2 percent. The MSCI index for Asian stocks outside of Japan rose 1.7 percent.
Investors were cautious on Wednesday about negotiations in the United States over a new Corona aid package. Democrats and Republicans have not yet reached an agreement.
3 – BMW opens its books
The automaker’s sales slumped by a quarter from April to June. “The second quarter of this year is the worst that BMW has ever experienced,” stated CEO Oliver Zipse recently. How bad it really was will be clear on Wednesday around 7:30 a.m. Then the people of Munich open their books. A loss is guaranteed. This is why analysts are particularly interested in how confident BMW looks ahead.
4 – Continental publishes figures
The second quarter was one of the hardest in the supplier’s history. On Wednesday, Continental will disclose the traces that the temporary closure of the factories left behind in the course of the corona crisis. According to the figures published in advance, Continental has had to accept a cash outflow of almost two billion euros in the past three months. Group sales fell by almost 40 percent. In particular, the core business with vehicle components is weakening.
5 – German postal service presents business figures
Post CEO Frank Appel is costing his success in the second quarter against the corona crisis twice. A month ago, he announced a 16 percent jump in operating profit. The other business figures follow on Wednesday.
6 – Allianz presents numbers
From 7 a.m., Allianz will present its figures for the second quarter. Analysts expect an average operating profit of over 2.4 billion euros for the period from April to June. That would be around a quarter less than in the same period last year. At the end of April, Europe‘s largest insurer had already revised its forecast for the full year of 12 billion euros in operating profit by 500 million euros up and down. Since then, the group has given no profit expectations for the current year.
7 – US non-manufacturing
In the afternoon (4.45 p.m.), the Institute for Supply Management (ISM) publishes its survey on the business situation in the non-manufacturing sector in the USA. This is considered an important indicator of the general economic situation in the USA. A decline from the previous month is expected in July. The rise in new corona infections is likely to have put a further strain on the activity of the sector.
Company dates on August 5
- 7:00 a.m. Germany: Commerzbank, Q2 numbers (call 10.30 h)
- 7:00 a.m. Germany: Deutsche Post, Q2 numbers (detailed) (call 8.15 a.m.)
- 7:00 a.m. Germany: smell in, Q2 numbers (call 8.00 h)
- 7:00 a.m. Germany: Allianz, Q2 numbers (press call 8:30 a.m.)
- 7:00 a.m. Germany: Carl Zeiss Meditec, 9-month figures (detailed)
- 7:00 a.m. Germany: Wacker Neuson, Q2 numbers (detailed)
- 7:00 a.m. Germany: Rule Group, Q2 numbers (detailed)
- 7:00 a.m. Germany: Who, Q2 numbers
- 07:30 a.m. Germany: BMW, Q2 figures (press call 10 a.m.)
- 07:30 a.m. Germany: Hannover Re, Q2 numbers (call 8.00 h)
- 07:30 a.m. Great Britain: Dialog Semiconductor, Q2 numbers
- 07:30 a.m. Germany: Elmos Semiconductor, Q2 numbers
- 07:30 a.m. Austria: Voestalpine, Q1 numbers (call 10.00 h)
- 07:45 a.m. Netherlands: Ahold Delhaize, Half-yearly figures
- 8:00 a.m. Germany: LPKF, half-yearly figures (detailed)
- 8:00 a.m. Netherlands: Wolters Kluwer, Half-yearly figures
- 8:00 a.m. Great Britain: Legal & General, Half-yearly figures
- 8:30 a.m. Germany: Continental, half-yearly figures (detailed)
- 10:00 a.m. Germany: Westwing Group, Annual General Meeting (online)
- 10:00 a.m. Germany: MTU, Annual General Meeting (online)
- 11:00 a.m. Germany: Video-Pk on the position of the chief economists of the Sparkassen-Finanzgruppe on considerations for a so-called climate tariff
- 6:30 p.m. Germany: Metro, 9-month figures (detailed)
- 6:45 p.m. Germany: Patrizia, Q2 numbers (detailed)
- 10:00 p.m. Germany: Morphosys, Q2 numbers
- 10:05 p.m. USA: Zynga, Q2 numbers
Company dates on August 5 (no time)
- Germany: Online Pk Mercedes Benz to the new software system “MO360” for production
- Germany: VDA / VdIK / KBA – new car registrations 07/20
- Switzerland: Ferrexpo, half-yearly sales
- Switzerland: Coca-Cola HBC AG, half-year figures
- Great Britain: Legal + General Group, half-yearly figures
- Italy: Pirelli, half-yearly figures
- USA: BorgWarner, Q2 numbers
- USA: Tyson Foods, Q3 numbers
- USA: Sonos, Q3 numbers
- USA: The New York Times, Q2-Zahlen
- USA: Etsy, Q2 numbers
Dates economic activity on August 5
- 3:45 a.m. China: Caixin PMI services 07/20
- 9:15 a.m. Spain: PMI services 07/20
- 9:45 a.m. Italy: PMI services 07/20
- 9:50 am France: PMI services 07/20 (final)
- 9:55 am Germany: PMI services 07/20 (final)
- 10:00 a.m. Germany: VDMA order intake in mechanical engineering June and Q2 / 20
- 10:00 a.m. Europe: PMI services 07/20 (final)
- 10:30 a.m. Great Britain: PMI services 07/20 (final)
- 11:00 am Europe: retail sales 06/20
- 11:30 a.m. Germany: bond / maturity: 5 years / volume: EUR 5 billion
- 2:15 p.m. USA: ADP Employment 07/20
- 14:30 USA: Trade balance 06/20
- 3:45 p.m. USA: Markit PMI Services 07/20 (final)
- 4:00 p.m. USA: ISM Index Services 07/20
- 4:30 p.m. USA: EIA Department of Energy Oil Report (Week)