Düsseldorf How will the stock exchanges develop on Thursday? The coronavirus pandemic, which is rampant worldwide, has so far weighed on the equity markets at home and abroad this week. On Wednesday, the leading German index, the Dax, lost 1.4 percent to 12,557 points, making it the lowest it has been since the beginning of October. In the US, too, investors were nervous and mostly sold their shares. Before the trading session, the Dax is slightly in the red at 12,484 points.
There is great fear among market participants that there will be again widespread lockdowns. In Germany, the RKI reported 11,000 new infected people in 24 hours. A sharp increase compared to the previous day when fewer than 8,000 people tested positive for the virus.
With a view to the steadily increasing number of cases in Germany, the Robert Koch Institute (RKI) will provide information on the development of the situation in Germany on Thursday at 10 a.m. in an online press briefing.
The Czech Republic and Ireland, for example, are taking drastic measures in the fight against the pandemic. In the Czech Republic, almost all shops will have to close as of Thursday. In addition, exit restrictions are imposed.
Ireland is also massively tightening its measures in the fight against the rising number of new infections. Shops that do not sell essential goods are closed. Meetings with other households are prohibited with a few exceptions.
According to the International Monetary Fund, the economic outlook for Europe remains weak due to the coronavirus pandemic. The recovery will drag on and vary in strength, according to the latest IMF study. This year the economy is likely to shrink by seven percent and then recover by 4.7 percent next year.
So the pre-crisis level is far from being reached. According to the IMF, the greatest risk for European countries is the second wave of infections in autumn and winter. In addition, a hard Brexit without a trade deal between the EU and the UK could deal another blow to the economy at the turn of the year.
According to the Federal Reserve, the US economy has continued to recover slowly to moderately. Consumers bought real estate and increased their spending, announced the central bank on Wednesday in its economic report “Beige Book”. But there are big differences between the individual industries. This will also be evident from the current reporting season. The beverage company, for example, provides figures for the third quarter Coke, the chip maker Intel and the airline American Airlines in front.
In Germany, Condor’s creditors will decide on the future of the holiday plane in Frankfurt today, Thursday. The airline wants to leave its protective shield proceedings after a good six months, for which trustee Lucas Flöther has submitted a corresponding plan for approval.
What is important for investors today:
1 – Trade in the United States
Investors on Wall Street became more cautious again on Wednesday. After a weak start to the week, the most important stock indices slipped back into the red on Wednesday until the end of trading. The Dow Jones Industrial closed 0.4 percent lower at 28,210 points. The market-wide S&P 500 fell 0.2 percent to 3435 points, while the technology-heavy Nasdaq 100 lost 0.1 percent to 11,665 points.
Fed central bank director Lael Brainard warned the US Congress that a lack of further stimulus aid posed the greatest risk to the economic outlook. Meanwhile, the corona virus continues to spread. According to the CDC disease control authorities, 8.249 million people in the USA have been shown to have contracted the corona virus. The death toll rose to 220,362.
2 – trade in Asia
The Asian stock exchanges have given up hopes of a quick agreement on a billion dollar US stimulus package before the US elections, despite progress in the talks. US President Donald Trump accused the Democrats of not being ready for an acceptable compromise.
Before that, an hour-long conversation between the President of the House of Representatives, Nancy Pelosi and US Treasury Secretary Steven Mnuchin had been successful and brought Democrats and Republicans “closer to getting something down on paper,” said Pelosi’s spokesman.
It was initially unclear whether the negotiations would continue before the US presidential and congressional elections on November 3rd. The Nikkei Index, which comprises 225 values, was 0.8 percent lower at 23,455 points.
The broader Topix index fell 1.1 percent and stood at 1619 points. The Shanghai stock exchange was 0.7 percent in the red. The index of the most important companies in Shanghai and Shenzen lost 0.6 percent. The MSCI index for Asian stocks outside of Japan rose 0.4 percent.
3 – EU and UK continue talks on Brexit trade pact
The EU and Great Britain are continuing their talks on a Brexit trade pact, and EU negotiators plan to travel to London on Thursday. The British government announced on Wednesday that it wanted to continue the negotiations. London justified this with a speech by EU negotiator Michel Barnier on Wednesday morning.
Barnier recognized important points for Great Britain, it said. From the EU perspective, there are only two to three weeks left because a treaty would have to be ratified before the end of the year. If this does not succeed, there will be a hard break with Great Britain at the end of the year.
4 – Continental in the third quarter with charges worth billions
The automotive supplier and tire manufacturer Continental also posted a loss in the third quarter. Impairments due to the foreseeable weaker business in the coming years as well as renovation costs for the savings program hit a total of 1.3 billion euros in the third quarter, like that DaxCompany announced on Wednesday after the market closed.
Therefore, despite a better day-to-day business, Conti will also show a loss in earnings before interest and taxes and the bottom line in the third quarter, it said. The management has tightened its austerity course because of the setbacks caused by the pandemic. There are 30,000 jobs around the world, 13,000 of them in Germany. Several plants are to be closed.
5 – Sixt does not venture a forecast for the full year
How will the Sixt share develop today? Germany’s largest car rental company will make a profit again in the third quarter. Earnings before taxes from July to September were 66 (2019: 147) million euros, 55 percent below the previous year, but unlike in the second quarter they were positive again, as the company announced on Wednesday evening in Pullach.
Sales collapsed by 41 percent to 460 million euros in the three summer months and thus hardly recovered. In the first nine months it was 39 percent below the previous year at 1.17 billion euros. In addition to the partially lifted travel restrictions, Sixt made cost reductions responsible for the quarterly profit.
The increasing number of infections makes CEO Erich Sixt cautious. In view of the currently drastic worsening effects of the pandemic, no forecast can still be made for the 2020 financial year, the ad hoc announcement said.
6 – Network equipment supplier Adva expects more sales and profits
There could be significant price movements on Thursday at the network equipment provider Adva. This year he is confident of an increase in sales and operating profit. Sales will be between 565 and 580 (2019: 557) million euros, and the adjusted operating return on sales will be five to six percent, the SDax company announced on Wednesday evening.
The operating profit would definitely be higher than the previous year’s figure of 24.8 million euros. Delivery bottlenecks due to the corona pandemic could thwart plans, Adva warned. In the third quarter, sales rose by 1.6 percent to 146.7 million euros, and adjusted operating profit improved – mainly thanks to cost reductions – by half to a good eleven million euros.
7 – Tesla reports record sales
A message that Autowert shareholders will study closely: The electric car pioneer Tesla has made a profit for the fifth quarter in a row and achieved record sales in the middle of the corona pandemic.
Net profit in the third fiscal quarter was $ 331 million, as the company from Fremont, California announced on Wednesday after the US market closed. Revenues shot up 39 percent to almost $ 8.8 billion.
Tesla delivered 139,300 vehicles in the reporting period, more than ever in a quarter. The group reiterated its goal of delivering half a million cars by the end of the year – for which it would have to increase sales significantly in the fourth quarter.
Company meetings on October 22nd
- 7 a.m., Switzerland: Sika, Nine-month numbers
- 7 a.m., Switzerland, ST Micro, Q3 numbers
- 7 a.m., Sweden: Skandinaviska Enskilda Banken, Q3 numbers
- 7 a.m., Netherlands: BE Semiconductor, Q3 figures
- 7:30 a.m., France: Thales, Q3 sales
- 7:30 a.m., France: Schneider Electric, Q3 sales
- 7:30 a.m., France: Pernod Ricard, Q1 sales
- 8 a.m., Germany: Amadeus Fire, Q3 numbers
- 8 a.m., UK, Relx, Q3 trading update
- 8 a.m., UK, Anglo American, Q3 Production Report
- 8 a.m., UK, Rentokil Initial, Q3-Trading-Update
- 8 a.m., Netherlands, Unilever, Q3-Trading-Statement
- 11:30 a.m., Finland, Machine, Q3 numbers
- 12 noon, USA: Dow, Q3 numbers
- 12:55 p.m., USA: Coca-Cola, Q3 figures
- 1 p.m., USA: AT&T, Q3 numbers
- 1 p.m., USA: American Airlines, Q3 figures
- 5:45 p.m., France, Kering, Q3 sales
- 5:45 p.m., France: Accor, Q3 sales
- 5:45 p.m., France, Michelin, Q3 sales
- 6 p.m., France, L’Oreal, Q3 sales
- 10 p.m., USA: Intel, Q3 numbers
- 10:05 p.m., USA: Mattel, Q3 numbers
Company appointments on October 22nd without a time
- Germany; Intershop Communications, Q3 numbers
- France: Score, Q3 numbers
- France: Dassault Systems, Q3-Zahlen
- France: Hermes International, Q3 figures
- Norway: DNB ASA, Q3 figures
- Sweden: Atlas Copco, Q3 numbers
- Sweden: Alfa Laval, Q3 numbers
- USA: Southwest Airlines, Q3 numbers
- USA: Kimberly Clark, Q3 numbers
- USA: American Electric Power, Q3 numbers
- USA: Northrop Grumman, Q3 Numbers
- USA: Quest Diagnostics, Q3 numbers
Dates for economic data on October 22nd
- 8 a.m., Germany; GfK consumer confidence 11/20
- 8 a.m., Germany: Purchasing behavior in the corona crisis up to and including week 42
- 8:45 a.m., France, producer confidence 10/20
- 9 a.m., Euro zone: European Central Bank (ECB) online conference on Europe-wide payment systems and the digital euro
- 10 a.m., Switzerland: Economic forecast autumn
- 1 p.m., Turkey: Central Bank, interest rate decision
- 2:30 p.m., USA: Initial jobless claims (week)
- 4 p.m. USA: leading indicator 09/20
- 4 p.m. USA: Resales houses 09/20
- 4 p.m. Euro zone: consumer confidence 10/20 (in advance)
With agency material.