MARKETS EUROPE / Looking for latecomers – DAX in future with 40 values ​​| 11/24/20

From Herbert Rude

FRANKFURT (Dow Jones) – The European stock markets showed a firm trend on Tuesday. The DAX rose by 1.3 percent to 13,292 points and marked the highest closing level since February 21. The Euro-Stoxx-50 gained 1.3 percent to 3,508 points. The mood was supported by the prospect of a quick availability of the vaccines and the announcement of an orderly handover by the US President Donald Trump to Joe Biden. Another positive response was that Biden, the former head of the US Federal Reserve Janet Yellen wants to make the new finance minister. The index reform of Deutsche Börse was also a big topic on the market. Among other things, it affects the DAX, which will comprise 40 instead of 30 stocks from September next year.

“The environment has brightened further,” said a trader. Another attack on the resistance zone around 13,300 points is looming in the DAX. An attempt to do this had failed on Monday. Should the DAX rise above 13,317 points, an increase towards 13,470 points and beyond to the record level of almost 13,800 points is possible. The SDAX, which is already on record course, also gives cause for optimism.

In the market, the rotation continued into cyclical sectors, especially latecomers like the Oil stocksthat are still well below their highs. Oil stocks led the winners list ahead of bank papers and commodity stocks, followed by car stocks and stocks in the travel and leisure sector. Investors are counting on a normalization of life and the economy in the coming year, which is also likely to be associated with greater mobility of the people. In the auto sector, Daimler gained 3.5 percent, BMW 3.8 percent and VW 3.9 percent, and Continental gained 6.3 percent. In the travel sector, Lufthansa rose by 7.1 percent, Air France-KLM by 11.1 percent and Tui by 15.4 percent. For this were among other things defensive Real estate stocks avoided: Vonovia lost 2.4 percent and Deutsche Wohnen 2.2 percent.

DAX with 40 stocks in the future

After much already indicated, it is now official: From September 2021, the leading index DAX will be expanded by ten to 40 values. This means that in future it will represent around 82 percent of the overall German market instead of around 75 percent as before. The MDAX, which is being reduced by 10 to 50 values, is more suffering. As early as December 2020, all future DAX candidates must show positive EBITDA in the last two financial reports before they can be accepted.

In the case of promoters and relegators, it will only be about size in the future, the table for share turnover on the stock exchange will be abolished. Instead, only a minimum level of liquidity is required.

DZ Bank particularly emphasized the higher transparency requirements for DAX members as positive. She pointed out that from March 2021, all companies in the DAX selection indices must be published with audited annual reports and quarterly quarterly reports. According to the new rules, a violation of this will lead to the index being excluded after a warning period of 30 days.

The private bank Merck Finck welcomed the fact that the DAX will in future be reviewed twice a year, in March and September instead of only in September as before. “A DAX reform was overdue at least since the Wirecard scandal,” said Marc Decker, Head of Asset Management at the company.

According to the current status, Airbus, Zalando, Symrise, Sartorius, Siemens Energy, Brenntag, Qiagen, Hannover Re, Siemens Healthineers and LEG Immobilien are potential newcomers. However, market strategists advise against relying on potential newcomers now, as a lot may change until next September.

Deutz shifts medium-term targets – share in the red

But the reporting season also had surprises in store. The engine manufacturer Deutz has warned that the medium-term targets for 2022 will probably not be achieved until 2023/24. The recovery in demand is taking longer than originally expected, according to Deutz. In trade the shift was called Profit warning evaluated, the value went down by 10 percent.

For the Sixt share, however, it went up 3.7 percent to 96.35 euros. Here the opinion of the Jefferies analyst prevailed, who, according to the figures, raised the price target to 105 euros. He rated the third quarter numbers as solid. Sixt expects consolidated operating sales of 1.5 billion euros in 2020, and before taxes the group expects a loss of 70 to 95 million euros in continuing operations.

According to a positive interim report, CRH gained 5.4 percent. Jefferies spoke of a reassuring update. The adjusted nine-month sales were slightly weaker than expected, the EBITDA corresponded to the forecasts. The outlook was received positively: CRH is targeting an EBITDA for the full year of more than $ 4.4 billion. Jefferies is so far from 4.3 billion. The net debt of $ 6 billion should also be below the estimate of $ 6.3 billion.

Enel advanced by 4.2 percent with their strategy update. According to Equita, this was above expectations. The analysts referred to the planned dividend per share of 43 cents in 2021. This corresponds to a dividend yield of 5.2 percent with high visibility at the same time. The analysts expect long-term growth at the utility.

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Index final development development development

. stood in% since

. Beginning of the year

Euro-Stoxx-50 3,507.98 +44.94 + 1.3% -6.3%

Stoxx-50 3.085,70 +27,35 +0,9% -9,3%

Stoxx-600 392,39 +3,55 +0,9% -5,6%

XETRA-DAX 13.292,44 +165,47 +1,3% +0,3%

FTSE-100 London 6.432,17 +98,33 +1,6% -16,0%

CAC-40 Paris 5,558.42 +66.27 + 1.2% -7.0%

AEX Amsterdam 607.46 +6.09 + 1.0% + 0.5%

ATHEX-20 Athen 1.667,52 +10,10 +0,6% -27,4%

BEL-20 Brussels 3,724.22 +110.08 + 3.0% -5.9%

BUX Budapest 39.046,50 +727,44 +1,9% -15,3%

OMXH-25 Helsinki 4,560.37 +53.56 + 1.2% + 8.0%

ISE NAT. 30 Istanbul 1,462.82 +2.18 + 0.1% + 5.4%

OMXC-20 Copenhagen 1,372.09 -23.55 -1.7% + 20.8%

PSI 20 Lisbon 4,449.39 +121.63 + 2.7% -12.3%

IBEX-35 Madrid 8,143.20 +162.00 + 2.0% -14.7%

FTSE-MIB Mailand 22.147,21 +445,42 +2,1% -7,7%

RTS Moscow 1,287.12 +30.31 + 2.4% -16.9%

OBX Oslo 829,49 +20,27 +2,5% -1,6%

PX Prague 956.13 +0.91 + 0.1% -14.3%

OMXS-30 Stockholm 1,938.14 +16.37 + 0.9% + 9.4%

WIG-20 Warsaw 1,859.42 +27.38 + 1.5% -13.5%

ATX Vienna 2,570.40 +44.01 + 1.7% -19.9%

SMI Zurich 10,491.59 +27.19 + 0.3% -1.2%

DEVICES last +/-% Tue, 8:18 am Thu, 5:22 pm% YTD

EUR/USD 1,1874 +0,29% 1,1852 1,1841 +5,9%

EUR/JPY 124,23 +0,42% 123,79 122,99 +1,9%

EUR/CHF 1,0833 +0,27% 1,0805 1,0798 -0,2%

EUR/GBP 0,8895 +0,10% 0,8884 0,8952 +5,1%

USD/JPY 104,62 +0,12% 104,45 103,88 -3,8%

GBP/USD 1,3348 +0,20% 1,3341 1,3225 +0,7%

USD/CNH (Offshore) 6,5846 +0,04% 6,5790 6,5764 -5,5%

Bitcoin

BTC / USD 19,332.00 + 4.89% 18,427.50 17,993.51 + 168.1%

ROHÖL last VT-Settl. +/-% +/- USD% YTD

WTI/Nymex 44,94 43,06 +4,4% 1,88 -19,8%

Brent/ICE 47,74 46,06 +3,6% 1,68 -22,2%

METALS last previous day +/-% +/- USD% YTD

Gold (Spot) 1.803,12 1.838,30 -1,9% -35,19 +18,8%

Silver (spot) 23.17 23.63 -1.9% -0.45 + 29.8%

Platinum (Spot) 954.50 930.00 + 2.6% +24.50 -1.1%

Kupfer-Future 3,30 3,26 +1,2% +0,04 +16,7%

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Contact the author: [email protected]

DJG / game / ros

(END) Dow Jones Newswires

November 24, 2020 12:08 ET (17:08 GMT)

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