Düsseldorf/New York The German stock market has had a strong week on the stock market, even if the Dax ran out of air at the end. On Friday the Dax closed 0.1 percent in the red at 13,203 points, but on a weekly basis there is a gain of almost three percent.
The leading German index should also start trading with a plus sign in the new week. Before the trading session, the stock market barometer was listed at 13,283, an increase of 80 points compared to the previous day’s close. With such an opening, the Dax is only around 160 points away from its previous Corona high, the highest level since the crash in mid-March this year. This mark is 13,460 meters and was reached at the beginning of September.
The key question is, what’s next for US tech stocks? These stocks went up and down again on Friday.
Discussions about the Brexit negotiations are likely to continue in the focus of investors. The EU now wants to intensify the preparations for a “no deal”: If no contract is successful, there is a threat of a hard economic break with tariffs and other trade barriers on January 1st.
1 – Trade in the United States
US tech stocks went up and down again ahead of the weekend. However, solid company balance sheets prevented major setbacks on Wall Street. The Dow Jones index of standard values closed on Friday 0.5 percent higher to 27,665 points. The technology-heavy Nasdaq, however, lost 0.6 percent to 10,853 points. The broad S&P 500 gained a moderate 0.1 percent to 3340 points.
Many investors view the tech sell-off that started late last week as a healthy consolidation after a rapid five-month rally. “The uptrend is intact, but there will simply be a lot more volatility and such setbacks can be painful for some investors,” said market strategist Ryan Detrick of asset manager LPL Financial. In addition, the fear of a sluggish economic recovery and increasing corona infections are holding back the stock exchanges.
2 – trade in Asia
Hopes for a corona vaccine have put Asian investors in a buying mood. The pharmaceutical manufacturer Astra-Zeneca announced over the weekend that it had resumed clinical trials of its experimental Covid-19 vaccine after receiving the green light from the health authority. Astra-Zeneca had to interrupt the studies with the vaccine candidate this week because of an unexplained disease in a study participant. “A wild ride that is likely to continue when the results of late-stage vaccine candidate trials roll in in the coming weeks,” said Tapas Strickland, an analyst at NAB, on Monday.
The Nikkei Index, which comprises 225 values, was 0.7 percent higher at 23,580 points. The broader Topix index rose 0.9 percent to stand at 1651 points.
The Shanghai stock exchange was up 0.6 percent. The index of the most important companies in Shanghai and Shenzen gained 0.6 percent. The MSCI index for Asian stocks outside of Japan rose 0.5 percent.
3 – EU-China Summit
Chancellor Angela Merkel (CDU) and the EU leaders want to agree on a schedule for the conclusion of the planned investment agreement in a video conference this Monday (2 p.m.) with China’s President Xi Jinping. The aim is to conclude the negotiations by the end of the year. An EU-China summit originally planned for the weekend in Leipzig was canceled. Germany is particularly involved because it currently holds the EU Council Presidency.
The industry association BDI strikes a critical tone. “Political factors are currently overshadowing the business prospects of our companies in and with China. The human rights situation in Xinjiang and Hong Kong is burdening relations, “said the President of the Federation of German Industries (BDI), Dieter Kempf, of” Welt “.
Fundamental and human rights are of course a global and non-negotiable good for German industry. “Beijing must be clear that the way in which political and social conflicts are resolved always has an impact on economic relations,” said the BDI President.
US stock market expert Koch: The bulls are ahead in the tug of war
4 – Oracle probably wins the Tiktok competition
The US business of the short video platform Tiktok will apparently be operated by Oracle in the future. As the “Wall Street Journal” (WSJ) reported on Sunday, Tiktok’s owner, the Chinese digital company Bytedance, and the cloud company from Silicon Valley agreed. Microsoft, that with Walmart had also bid for Tiktok, said they had received a rejection from Bytedance.
According to a source from the “WSJ”, Oracle will not take over Tiktok, but will work with the platform as a “trustworthy technology partner”. What this means in detail is unclear. Oracle is also interested in a stake in the Tiktok assets in the US, reports the Reuters news agency.
The sales talks had become necessary after US President Donald Trump’s actions against Tiktok and Bytedance. Trump describes Tiktok as a security risk because Chinese authorities could gain access to American data via the app. In early August, he banned US companies and citizens from doing business with Tiktok – this ban is due to take effect in mid-September. Without a deal, Tiktok threatens to end in the US.
5 – UK Parliament votes on Single Market Act
In the wake of the Brexit dispute, the British House of Commons debated the Single Market Act on Monday afternoon. With the planned law, Prime Minister Boris Johnson wants to re-drill parts of the already valid Brexit agreement. It is about special rules for the British Northern Ireland, which should prevent a hard border with the EU state Ireland and new hostilities there.
The European Union condemned Johnson’s actions as a violation of the law. She asked Great Britain to give in by the end of September – which in turn was rejected by the government in London.
This also reduces the chances of a trade pact between the international community and Great Britain after the Brexit transition phase. A treaty would have to be ratified in October. If this does not succeed, there is a risk of a severe economic break with tariffs and other trade barriers at the end of the year.
Dates company on September 14th
- 09:00 a.m. Germany: Hannover Re Telefon-PK zum September Rendezvous
- 2 p.m. Switzerland: Roche, Pharma Day (online)
- 2:00 p.m. Germany: Negotiation of the state’s claim for damages against Volkswagen
Dates economy on September 14th
- 06:30 am Japan: industrial production 07/20 (final)
- 11:00 am Europe: industrial production 07/20
- Germany: Administrative Court decides on diesel driving bans in Limburg and Offenbach
- Germany: Bitkom presents student study on the digitization of education
- Netherlands: Iran-USA conflict before the highest UN court. The hearing before the International Court of Justice begins in the legal dispute between Iran and the USA. Iran had sued the US for the seizure of Iranian assets in 2016. UN judges are initially dealing with complaints against the US proceedings.
With agency material.