Dax slips by more than 200 points – gold price benefits from new US financial package

Dax curve in the trading room in Frankfurt

Düsseldorf The hunt for a new record high has been canceled: In the first hour of trading, the Dax slipped by around two percent on Monday to 13,360 points, 270 points below the closing price of the previous week of trading. Last Friday, the index was only 20 points short of a new record, which is 13,795 points. Ultimately, the stock market barometer went out of trading with a minus of 0.3 percent and a closing reading of 13,631 points.

Given a virus mutation and its unexplained effects, investors prefer to sell. But there are no panicked sales at the start of trading.

The situation is curious: Because of this mutation in the coronavirus, Great Britain is now experiencing what a hard Brexit could look like, although negotiations with the EU are still going on.

In contrast to the stopped air traffic, there is still free movement of goods between the island and mainland Europe, but the number of freight forwarders is likely to decrease significantly.

Logistics companies are already pointing out that they are not interested in sending trucks to the island if they can no longer come back. Even just before Christmas. “The horror ideas of the British about a shortage of goods after a hard Brexit get – for a completely different reason – a completely new drive,” says Ulrich Leuchtmann, foreign exchange analyst at Commerzbank.

The pound sterling is falling accordingly, but the reaction is limited. The currency fell 1.8 percent on Monday to 1.3283 dollars and one percent to 1.0907 euros. The British equity selection index FSTE 100 falls 1.7 percent at the opening.

The Asian markets hardly responded to the virus mutation. The Japanese indices are down around 0.2 percent, while the stock market barometers in China are rising between 0.7 and 1.8 percent.

Because there is also positive news for the markets. The new Corona stimulus package in the USA is likely to be the most important reason why the markets are not going down even more significantly. Because the Democrats and Republicans in the US Congress have agreed on a package worth around $ 900 billion (around 737 billion euros) after months of dispute.

Among other things, there are plans to provide additional financial aid for small businesses and a temporary increase in unemployment benefits of $ 300 per week.

The agreement on such a large injection of funds raises the gold price. One troy ounce (31.1 grams) is quoted again at around 1900 dollars, an increase of around one percent. The dollar, on the other hand, can gain. In return, the euro fell against the greenback by 0.9 percent to 1.2184 dollars.

Look at the individual values

Lufthansa / Fraport: For shareholders of the crane airline and the airport operator, the new coronavirus variant and the cessation of air traffic to Great Britain is of course not positive news. The papers yield around eight percent each. The federal government, like many other European countries, imposed a ban on flights from Great Britain to Germany out of concerns about a new and more contagious variant of the virus.

K + S: The shares lost 1.1 percent despite positive news. The salt and fertilizer manufacturer is bringing its waste disposal division into a joint venture and sees this as a contribution to debt reduction.

Curevac: The Tübingen-based biotech company wants to test its Covid-19 vaccine candidate in a clinical phase 3 study on employees in the healthcare sector at Mainz University Medical Center from Tuesday. More than 2500 test persons aged 18 and over should take part. The new test complements a recently started global phase 2b / 3 registration study with more than 35,000 participants for the vaccine candidate based on messenger ribonucleic acid (mRNA). The share can hold its own in the weak market environment and gained 0.2 percent.

Tele Columbus: The cable operator is to get a new major shareholder. A Morgan Stanley Infrastructure Partners company announced on Monday a voluntary public takeover offer at a price of 3.25 euros per share. Tele Columbus and its anchor shareholder United Internet announced that they supported the transaction. Last Friday, the paper rose by 9.5 percent to 2.87 euros and has now reached 3.20 euros with a further increase of eleven percent.

What the chart technique says

The Dax broke out of its five-week long sideways movement on Wednesday last week. The highest price last Friday was 13,774 points, only around 20 points away from the all-time high.

But now, from a technical point of view, it is important to deal with the supports on the bottom. There is one of the area around 13,460 points. The former corona high from September has now become an important resistance. Should the Dax fall below this level at the end of the year, the year-end rally is likely to fail.

The next station on the bottom is then at 13,005 meters, the lower limit of the five-week sideways phase.

Here is the page with the Dax course, here are the current tops & flops in the Dax.


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