The ECB was therefore unable to provide any stimulus on the stock market. Of the Dax gave up its initial gains and closed with a loss of 0.2 percent just above the 13,200 point mark. On Friday morning, the German benchmark index was listed on OTC trading platforms slightly in the red – and below the 13,200 point mark.
Friday trading is likely to be determined primarily by Wall Street guidelines. The most important indices reported losses there. As planned, impulses from the economy or companies are not expected on Friday. There are only a few relevant dates in the calendar.
1 – Trade in the United States
Once again, Wall Street technology stocks came under pressure. The papers of the so-called FAANG groups – Facebook, Apple, Amazon, Netflix and the Google-Mother Alphabet – were quoted deep in the red. The tech exchange Nasdaq closed accordingly two percent in the red. However, the discounts were far smaller than in the previous week, when a sharp correction took place on the US stock exchanges.
Overall, the mood on Wall Street was rather modest. Also the Dow Jones benchmark index and the broader S&P 500 ended trading at discounts. The Dow was down 1.5 percent while the S&P 500 was down 1.8 percent.
The truck manufacturer Navistar braced itself against the general downward trend: The company’s share reached a two-year high of 42.50 dollars with an intermittent increase of 18 percent. The VW-Daughter Traton had improved their offer for the truck manufacturer. Ultimately, Navistar took a plus of 14 percent across the finish line at the close of trading.
2 – trade in Asia
The Asian stock markets maintained their level on Friday despite weak indications from the US technology sector. The Nikkei index, which comprises 225 values, was 0.3 percent higher at 23,304 points. The broader Topix index rose 0.5 percent and stood at 1633 points. The MSCI index for Asian stocks outside of Japan was almost unchanged at 558 points.
On New York’s Wall Street, the big technology stocks hadn’t been able to keep up their friendly price trend of the previous day. Dealers also referred to the failure of a Republican bill for corona aid in the US Senate. “The need for more government aid seems obvious, but the chances of getting help quickly have diminished significantly,” said foreign exchange strategist Rodrigo Catril of the National Australia Bank.
3 – U.S. Senate overturns Republican law on corona aid
In the USA, the negotiations on a new package for corona aid have stalled. In the Senate, a Republican bill on Thursday did not get the majority needed to continue negotiations. It provided government support of around $ 500 billion.
The package is inadequate, argued Senate Democratic minority leader Chuck Schumer. The Democrats who control the House of Representatives are aiming for roughly ten times the volume. They expressed the hope of further negotiations to find a compromise.
In the past, comparatively quick agreements on aid packages had spurred the stock exchanges. The main indices on Wall Street had traded near their record highs again despite the recent setbacks.
US stock market expert Koch: The bulls are ahead in the tug of war
4 – Meeting of EU Economy and Finance Ministers
The economic and finance ministers of the European Union are concerned with the consequences of the corona pandemic. Federal Finance Minister Olaf Scholz (SPD) has invited to a two-day informal meeting in Berlin as part of the German EU Council Presidency, which begins on Friday.
The main topic is the economic situation in the corona crisis and the implementation of the agreed countermeasures, including the 750 billion euro program as part of the EU budget package. In addition, it should be about the taxation of global companies and a closer integration of the financial markets.
5 – bitter dispute between EU and Great Britain
The fierce dispute between the EU and Great Britain intensified again on Thursday. The EU Commission has ultimately asked Great Britain to withdraw plans to change the current exit agreement by the end of September at the latest. The British Minister of State Michael Gove promptly rejected the offer.
The negotiations on the trade pact planned for 2021 are also stuck. There remained “significant differences”, said EU negotiator Michel Barnier in the evening. The EU now wants to intensify preparations for a “no deal”.
The ongoing dispute has been one of the main negative factors for the Dax for many months. This was also the case on Thursday, when the leading index surrendered its gains after the negotiations again failed to bring any convergence. Without an agreement by the end of the year, there is a risk of Great Britain leaving the EU in a disorderly manner.
The situation is also affecting the British pound. The British currency, which has already depreciated significantly in the past few weeks, fell again in relation to the euro and the US dollar.
6 – Bayer extends contract with CEO Baumann
Werner Baumann remains CEO at Bayer. The DAX group extended its CEO’s contract, which expired in 2021, to April 2024. Baumann has been leading the Leverkusen-based chemical and pharmaceutical company since 2016. During his tenure, the controversial takeover of the US seed manufacturer Monsanto falls. In the protracted legal dispute over the question of whether and to what extent the Monsanto weed killer glyphosate is carcinogenic, the group reached a fundamental agreement in June with the lawyers of the glyphosate plaintiffs in the USA. This will cost the company up to $ 9.6 billion.
What was important for Bayer was the part of the package dealing with new lawsuits that will be filed in the coming years. The lawyers on both sides had worked out a complex construct designed to prevent another wave of lawsuits. Bayer wanted to put another $ 1.25 billion on the table for this.
However, this ruling was not well received by the responsible judge in San Francisco, whereupon Bayer withdrew the part of the settlement in July and has been renegotiating it since then. The Leverkusen-based company announced on Thursday evening that progress had been made in these talks. The details of the revised concept would be finalized in the coming weeks. The stipulation also applies that Bayer will only agree to a settlement on reasonable financial terms.
Dates company on September 11th
- 07:00 a.m., Germany: Fraport, Traffic figures August
Dates economy on September 11th
- 8:00 a.m., Wiesbaden: price development 08/20 (final)
- 8:00 a.m., Spain: price development 08/20 (final)
- 8:00 a.m., UK: industrial production 07/20
- 2:30 p.m., USA: consumer prices 08/20
- 2:30 p.m., USA: real income 08/20
With agency material.