Düsseldorf For investors, it is first time to wait and see on Thursday: The negotiations on future trade relations between the European Union and Great Britain were postponed once more on Wednesday – this time until Sunday evening. Also on the question of whether there will be a second, hard lockdown in Germany and, above all, when, there is still no decision. The number of new corona infections reached a new high on Thursday.
At least there is prospect of a settlement of the conflict over the EU financial framework. Poland recently signaled an agreement in the deadlocked dispute over the EU budget. On Thursday the EU heads of state and government want to find a final decision. They didn’t give any details. For the confederation of states it is about 1.8 trillion euros by 2027. This includes: 750 billion euros for the reconstruction of the economy after the corona crisis.
And finally, the European Central Bank is advising today on further monetary policy easing to cushion the economic consequences of the corona. At around 2 p.m., ECB President Christine Lagarde will announce the decisions and then explain them in a press conference.
Until then there will be little movement in the German share index. Quoted at the opening of trading in Frankfurt the Dax Slightly in the red on over-the-counter platforms at 13,325 points.
On Wednesday, the Dax went up again – at the Corona high of 13,460 points, the Dax failed again and closed with a plus of 0.5 percent at 13,340 points, after all the highest closing value in a week.
What is important for investors:
1 – Trade in USA
Movement in the dispute over another US stimulus package brought Wall Street to new record highs on Wednesday. However, the beginning of profit-taking ended the initial high-altitude flight. The US standard value index Dow Jones closed 0.3 percent in the red at 30,069 points. The broad S&P 500 and the technology-heavy Nasdaq lost up to two percent. At the opening, the three indices each set new records with 30,320 counters, 12,607 digits and 3712 points.
The back and forth with the stimulus package unsettled investors, said Randy Frederick, manager at the brokerage house Charles Schwab. According to Mitch McConnell, the Republican majority leader in the US Senate, some questions remain unanswered. Meanwhile, the House of Representatives is preparing a bridge financing to gain more time for negotiations.
The unchanged positive mood of the investors was fed by the announcement of the health company Johnson & Johnson, important test results of his corona active ingredient could be available earlier than planned. The company’s shares then expanded their recent gains and rose 1 percent.
In contrast, investors withdrew from “safe havens”. The “anti-crisis currency” gold lost almost two percent to 1838 dollars per troy ounce (31.1 grams). This put precious metal miners under pressure to sell. The shares of Barrick, or Newmont Anglo Gold Ashanti lost up to 3.1 percent.
US Treasuries were also less in demand. This drove the yield on ten-year T-bonds to 0.941 percent.
2 – trade in Asia
The Nikkei index, which comprises 225 values, was 0.3 percent lower at 26,730 points. The broader Topix index remained unchanged and stood at 1780 points.
The Shanghai stock exchange was up 0.2 percent. The index of the most important companies in Shanghai and Shenzen gained 0.2 percent. The MSCI index for Asian stocks outside of Japan rose 0.4 percent.
3 – ECB decides on key interest rate
In the past few weeks, ECB President Christine Lagarde has made it very clear that she wants to ease monetary policy further. All instruments would have to be readjusted – so her tenor. Above all, she emphasized the importance of bond purchases and cheap long-term loans for banks.
In addition to bond purchases, relief for the banks and comments on the euro exchange rate, Lagarde will also present the ECB’s new forecasts for growth and inflation in the euro area on Thursday. It will also be interesting to see how close the Governing Council is.
4 – Tui
Germany‘s largest travel group presents the report for the 2020 financial year, which ended in September. Due to the almost complete suspension of travel operations due to the corona pandemic, sales for the entire group in the third quarter fell by 98 percent to 75 million euros. The Group’s operating loss (adjusted EBIT) was 1.1 billion euros.
5 – Airbnb
The US housing broker is well on the way to getting the biggest IPO of the year in the US. The issue price was set at $ 68 on Wednesday evening, US media previously reported. So Airbnb is valued at $ 47 billion and raised $ 3.7 billion from investors, significantly more than expected. This indicates strong investor demand for the shares. The online accommodation broker raised the supply range for its shares to $ 56 to $ 60 on Monday, thanks to strong demand.
6 – Turnover and employment in construction
The Federal Statistical Office publishes the September data on sales and employees in the construction industry. In the previous month, sales were 3.4 percent lower than in August 2019. However, the very high level of the previous year must be taken into account. The number of employees, however, increased by 1.4 percent compared to the same month last year.
7 – EU heads of government discuss pandemic and climate
The heads of state and government are meeting in Brussels to discuss further coordination in connection with the Covid 19 pandemic and on the issues of climate change, trade, security and external relations. EU leaders will also meet for a euro summit on December 11th.
8 – US consumer prices
The US Department of Labor released data on consumer prices in November. In October, the rate of inflation had only increased by 1.2 percent compared to the same month last year, in September it had risen by 1.4 percent.
Dates company on December 10th
- 07:00 a.m. Germany: Tui, years (call 8:00 a.m.)
- 10:30 a.m. Germany: BASF Research press conference on the topic of “circular economy”, Ludwigshafen
- 1:00 p.m. Germany: Sixt Leasing, Extraordinary General Meeting
- 1.30 p.m. Germany: Meeting of the Bundestag committee of inquiry into the Wirecard accounting scandal
- 2:00 p.m. Germany: ProCredit Holding, Extraordinary General Meeting
- 10:05 p.m. USA: Adobe, Q4 numbers
- Germany: HelloFresh, Capital Markets Day
- Germany: Bertrandt, Years (10.00 a.m. online pk)
- Germany: MVV Energy, Years (10.00 a.m. online pk)
- Germany: Voith Group, annual figures (10.00 a.m. online Pk)
- USA: Broadcom, Q4 numbers
- USA: Walt Disney, Investor Day
- USA: Airbnb, Erstnotiz Nasdaq
Dates for economic data on December 10th
- 8:00 a.m. UK: GDP 10/20
- 8:00 a.m. Great Britain: industrial production 10/20
- 8:00 a.m. Great Britain: Trade balance 10/20
- 8:00 a.m. Germany: construction (turnover and employees) 09/20
- 8:00 a.m. Germany: producer prices for agricultural products 10/20
- 8:00 a.m. Germany: Employees and turnover in the skilled crafts Q3 / 20
- 08:45 am Frankfurt: industrial production 10/20
- 9:30 a.m. Sweden: consumer prices 11/20
- 10:00 a.m. Germany: DIW economic forecast 2020 – 2022 online Pk
- 11:00 a.m. Greece: consumer prices 111/20
- 11:00 a.m. Greece: industrial production 10/20
- 1.45 p.m. Euro zone: ECB interest rate decision (Pk 2.30 p.m.)
- 2:30 p.m. USA: consumer prices 11/20
- 2:30 p.m. USA: Initial jobless claims (week)
- 2:30 p.m. USA: real income 11/20
- 09:00 am Germany: “Automotive Summit 2020” with the Managing Director of the German Association of the Automotive Industry (VDA), Martin Koers, the CEO of the automotive supplier Elring Klinger, Stefan Wolf, and the board member of the automotive division of the automotive and industrial supplier Schaeffler, Matthias Zink.
- 9:00 a.m. Germany: BGH clarifies: May pay by Paypal or Sofortüberweisung cost extra? The competition center sued Flixbus because the long-distance bus company had charged an additional fee when buying tickets.
- 10:30 am Germany: Online-Pk of the Institut der Deutschen Wirtschaft on the topic “Stable through the crisis? Distribution consequences of the corona pandemic “
- EU: Summit of EU heads of state and government (until December 11th, 2020)
With agency material