Dax & dates in the daily stock market report

Düsseldorf On Tuesday it looked as if Dax investors had made a decision: They drove the German leading index again above the 13,000 point mark. But then she apparently lost her courage: The Dax closed 0.3 percent in the red at 12,882 points. Even new record highs on the US stock exchanges could not change that.

So investors and analysts will again be watching eagerly on Wednesday whether the rally will continue after the massive slump at the beginning of the corona crisis. On Wednesday morning, the leading German index was listed on over-the-counter trading platforms at 12,878 points, almost at its closing level on Tuesday evening.

If you look at investor sentiment, there should soon be a landmark decision. “It is not yet possible to predict which scenario will prevail,” said Stephan Heibel after evaluating the weekly Handelsblatt survey Dax Sentiment and other indicators.

Because private and professional investors in this country are at odds about the future price development. Institutional investors have completely changed their minds and are now expecting prices to fall significantly. Private investors, on the other hand, are gradually liquiding the short positions they used to hedge against falling prices.

Investors will be watching with particular interest how the RWE share reacts to the Essen-based energy company’s capital increase. The company raised two billion euros in fresh capital overnight.

1 – Trade in the United States

The US technology exchange Nasdaq rushes from record to record: On Tuesday, the Nasdaq reached a new high and temporarily rose to 11,421 points. It had already set a new record at the opening.

And the S&P also continued to rise strongly: since the low point on March 23, the index has risen 55 percent. Now the S&P has crowned its comeback with an increase of 0.2 percent to 3389 points. At the end of the trading day, the Nasdaq stood at 11,399 points, while the S&P closed at 3389 points. The Dow Jones index of the standard values, however, closed 0.2 percent weaker at 27,778 points.

2 – trade in Asia

Asian stocks climbed to their highest level in seven months on Wednesday. They followed the record level of the S&P 500 in the USA, which was triggered by ever greater political incentives to cushion the economic setback caused by the coronavirus pandemic.

The Nikkei index, which comprises 225 values, was 0.2 percent higher at 23,102 points. The broader Topix index rose 0.1 percent to stand at 1613 points. Only the investors in Shanghai were not carried away by the optimism and the stock market was 0.4 percent in the red. The index of the most important companies in Shanghai and Shenzen also lost 0.5 percent. The MSCI index for Asian stocks outside of Japan rose 0.4 percent. Gains were primarily driven by Australian stocks, up 0.8 percent, and South Korea, up 0.6 percent.

3 – RWE has raised more than two billion euros from shareholders

The energy company RWE has obtained fresh money from its shareholders to expand its business with renewable energies. In addition, the share capital will be increased by ten percent, RWE announced on Tuesday after the market closed. In late trading on Tuesday evening, the share price on the Stuttgart Stock Exchange fell by four percent.

Around two billion euros came together: 61.5 million new shares were allocated at a price of 32.55 euros, as the group announced after the capital increase was completed. The offer was almost three times oversubscribed.

The proceeds from the capital increase are to be used for investments in the additional, short-term expansion of the portfolio of renewable energies, in the further development of the project pipeline and in further growth opportunities. This goes beyond the previous goal of increasing the installed capacity to more than 13 gigawatts (GW) by the end of 2022 and investing around five billion euros in renewable energies.

4 – Quarterly figures from Møller-Mærsk

The Danish logistics giant reports on the course of business in the second quarter this Wednesday. Most recently, Maersk expected a decline of 15 to 18 percent compared to the previous year, after a decrease in sales of up to 25 percent had previously been expected. In view of the economic uncertainty due to the corona pandemic, Maersk will probably still not make a forecast for the full year.

5 – inflation in the euro area

Eurostat publishes on Wednesday the final data on consumer price developments in the euro area in July. The preliminary numbers were a surprise because they were higher than expected. After that, prices rose 0.4 percent in July. Experts, however, had expected the inflation rate to fall to 0.2 percent after 0.3 percent in June. But even with the higher value, the price increase remains well below the European Central Bank’s target, which is unchanged at close to two percent.

Wall Street expert Koch: “Tesla is now the 10th largest company in the S&P 500 by market value”

6 – Fed minutes become public

Markets will also carefully read the minutes of the latest Fed meeting, which will be released later Wednesday, “for clues as to what the Fed might say in September about the future forecast,” said Tapas Strickland, economist at the National Australia Bank in Melbourne. At its meeting at the end of July, the US Federal Reserve had interest rates close to zero and the door to new crisis aid remained open.

Dates company on August 19th

  • 07:00 Germany: Demire Deutsche Mittelstand Real Estate, half-year figures
  • 08:00 Denmark: AP Moller-Maersk, Q2 figures
  • 08:00 Finland: Fortum, Half-year figures
  • 10:00 Germany: Rhön Clinic, Annual General Meeting (online)
  • 10:00 Germany: LEG Real Estate, Annual General Meeting (online)
  • 22:05 Germany: German Stock Exchange announces changes in the composition of the indices
  • USA: Analog Devices, Q3 numbers
  • USA: Samsonite International, Q2 figures
  • USA: Nvidia, Q2 numbers

Dates for the economy on August 19th

  • 01:50 Japan: Core rate machine orders 06/20
  • 08:00 UK: consumer prices 07/20
  • 08:00 Great Britain: producer prices 07/20
  • 08:00 Germany: Manufacturing industry (order backlog index and reach) 06/20
  • 10:00 Euro zone: Current account 06/20
  • 11:00 Euro zone: consumer prices 07/20
  • 11:30 am Germany: bond issue, term 30 years, volume: 1.5 billion euros
  • 16:30 USA: EIA oil report (week)
  • 8:00 p.m. USA: FOMC meeting minutes July 28/29, 2020

Other dates

  • EU special video summit on power struggle in Belarus (Belarus): 12:00 EU video summit on Belarus, followed by a statement and press conference by Chancellor Angela Merkel in Berlin.

With agency material

Here is the page with the Dax Course, here are the current tops & flops in the Dax. Current Short sales of investors can be found in our Short Sales Database.

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