After constantly breaking new record highs, Wall Street ran out of air on Friday. The DAX also began to slide. But according to experts, this should only be a short sag.
At the moment, the direction on the stock exchanges seems to be determined by one man: Joe Biden. The prospect of a nearly two trillion dollar stimulus package under the new US president drove the stock markets to new highs this week. Investors are riding the “blue wave”, say market observers, referring to the “blue” Democrats who can now rule in the US.
Dow is falling behind
On Friday, however, the ride on the “blue wave” was over for the time being. Wall Street gave way and did not break new records. The Dow Jones lost around 0.6 percent and closed below 31,000 points. The broader S&P 500 and the tech-heavy Nasdaq100 lost 0.3 percent.
IBM and Intel disappoint
Disappointing numbers from tech heavyweights IBM and Intel dampened the good mood. The computer company IBM achieved less sales in the fourth quarter. The shares of “Big Blue” plummeted nearly ten percent. Intel’s shares also plummeted – by a good nine percent. Investors did not like the fact that the world’s largest chip company now wants to continue to manufacture most of its processors in its own factories.
DAX ends good stock market week in the red
In Germany, the two industrial icons VW and Siemens shone with billions in profits. However, that was not enough to move the DAX up. The leading German index, which climbed to over 14,000 points on Thursday, fell 0.2 percent to just under 13,874 points. At times the minus was even greater. Nevertheless, the weekly balance is impressive. The DAX has gained 0.6 percent since Monday.
Fear of the economic slowdown
Investors fear that the tightened corona restrictions will further stall the economic engine. The federal government is likely to lower its growth forecast for the current year to 3.0 percent, as Reuters learned from an insider. So far, the government had assumed an increase of 4.4 percent.
The lockdowns are already slowing the economy. The European purchasing managers index fell below the growth threshold of 50 points in January. Commerzbank economist Christoph Weil expects a recession in the euro zone in the winter half-year.
How strong will the recovery be?
The future is traded on the stock exchange. It is counting on a strong economic upturn from the middle of the year. Holger Schmieding, chief economist at Berenberg Bank, is particularly optimistic. He predicts a “very strong recovery from the second quarter of the current year across the entire western world”. In the course of the Corona crisis, many consumers would have saved significantly than in previous years. If they only spend half of that money, that would bring a huge consumption boost in the summer.
Euro gets up
The gloomy mood on the financial markets did not affect the euro. The common currency temporarily traded at a nine-day high of $ 1.2189. The euro was boosted by economic data. The purchasing managers’ indices compiled by the Markit Institute fell in January, but in some cases the decline was not as strong as feared. On the other hand, the British pound was under pressure.
Siemens amazes with strong numbers
The largest winners in the Dax with an increase of almost seven percent were the papers from Siemens. CEO Joe Kaeser says goodbye with strong numbers. The digital division in particular has contributed to this, said dealers. Against this background, Siemens shares appeared to be valued too cheaply. Goldman Sachs raised the price target to 145 euros. Jefferies said that profitability in the Digital Industries segment was impressively high. The industrial group’s higher goals for the entire financial year are now “very realistic”.
Billions in profits from VW
The second largest winner in the DAX was VW with an increase of almost two percent. The key figures on business development 2020 published at noon were well received. According to this, Europe’s largest car manufacturer has posted an operating profit before special items of ten billion euros. That is only half as much as last year, but better than expected. The final dates should follow at the end of February. VW has not yet given any specific information on net profit in 2020, but the “Dieselgate” charges have recently fallen noticeably.
ProSiebenSat.1 is feeling the recovery in the advertising market
The shares of ProSiebenSat.1 were very popular with investors. With a plus of 4.6 percent, the titles of the television chain stood out positively from the MDax. The US bank JPMorgan commented that ProSiebenSat.1 had significantly exceeded analyst forecasts and its own targets with its quarterly results. The operating result (adjusted Ebitda) fell by only about 20 percent to around 700 million euros in 2020, and sales fell by around two percent to around 4.04 billion euros. The advertising business picked up again in the second half of the year.
Taiwanese offer more for Siltronic
The front runner in the TECDAX was Siltronic. The shares climbed by almost four percent to over 145 euros. The Taiwanese chip supplier Globalwafers has stalled its takeover offer for the German wafer manufacturer. Instead of the previous 125 euros, 140 euros would now be offered per outstanding ordinary share. All other conditions of the takeover offer remained unchanged. Many investors had expected the move. The shareholders can continue to consider whether to accept the offer until January 27th.
Cewe earns more with photos
The photo service and online printer benefited from strong Christmas sales. Sales rose last year to around 727 million euros – after 720.4 million euros in 2019. The operating result (EBIT) climbed to around 79 million euros. According to the announcement shortly before the Xetra close, the Cewe share, which is listed in the SDAX, rose by 4.5 percent.
AstraZeneca vaccine delays
The British pharmaceutical company AstraZeneca has delivery problems with its corona vaccine. AstraZeneca had informed the EU Commission that after the approval of the vaccine to the EU, which was expected at the end of January, the group would be able to deliver significantly less than initially planned, admitted a company spokesman. The background is production difficulties at one location. The number of vaccine doses in the first quarter of 31 million units was around 60 percent lower than planned, a high-ranking EU representative told Reuters on the evening.
The desire for premium cognac increases
The strong demand for premium cognac in the USA and China brings Rémy Cointreau unexpectedly good business. Sales rose in the past quarter by around 25 percent to 350 million euros. The current quarter also got off to a lively start. Remy Cointreau kept the forecast for the current financial year (until the end of March). In view of the pandemic restrictions, sales in the duty-free area continued to decline. In addition, the slow reopening of bars and restaurants is putting pressure on sales in Southeast Asia.
Successful stock market debut for Mytheresa
The IPO of the Munich luxury online fashion retailer Mytheresa in New York has proven to be a success. The first rate of US Depositary Shares – ADS for short – was $ 35.85. The papers had previously been issued to investors for $ 26 per share. The papers closed at $ 31 a good 19 percent higher.
The IPO in New York aims to appeal to international investors. In addition, the company is hoping for greater awareness in the important US market.