Thursday, January 07, 2021
14,000 hurdle jumped
Economic belief lifts Dax to a record high
Driven by strong guidelines from Wall Street and a 30-year high for the Japanese Nikkei, the leading German index jumps over 14,000 points for the first time after several attempts. The stock exchanges worldwide rise "in hours in which the US democracy is shaken to its foundations," comments one analyst.
For the first time in its history, the leading German index broke the 14,000 point mark. After several attempts it cracks Dax the round mark and rose to 14,007.47 meters – then the stock market barometer came back a little. In the end, there was a solid increase of 0.6 percent to 13,968 points on the price board. The chaos in Washington obviously leaves investors indifferent. On Wall Street, too, there are business optimists in the majority. The leading US indices Dow Jones, Nasdaq and S&P 500 mark new records in early trading.
The hopes for the economy were mainly fed by the majority of the Democrats in both chambers of the US Congress. The future President Joe Biden also belongs to this party. "The constellation suggests further fiscal stimulus measures in the USA," said Commerzbank analyst Daniel Briesemann. "New Corona aid measures that the Republicans have so far rejected could be decided on in the short term."
Also the stock market barometer from the second and third row, the MDax and the SDax, posted record highs. The index for medium-sized stocks ultimately closed 0.3 percent stronger at 31,224 points. The small cap index SDax climbed 1.1 percent to 15,278 positions. The EuroStoxx 50 increased by 0.3 percent to 3622 points. The French Cac 40 advanced 0.7 percent and the British FTSE 100 by 0.2 percent.
The accelerated growth of the US service providers provided additional tailwind. Despite the corona crisis, the purchasing manager index surprisingly rose to 57.2 points in December. This is to be rated positively, especially since a decrease was expected in the context of high numbers of new infections.
There is an additional boost from the approval of a second vaccine in the European Union. However, market observers warn: The investment crisis and risk appetite remain high despite all the uncertainties that remain due to the pandemic.
Infrastructure values wanted – raw materials too
Against this background, investors turned to infrastructure stocks again. The European industry index rose to an eleven-month high. The view from Saint Gobain provided additional tailwind. The construction industry supplier promised a quarterly result above market expectations.
Among the individual values in the Dax stood out HeidelbergCement particularly positive with a price increase of 3.9 percent. The French bank Societe Generale recommended the share with a view to the US business of the group as a buy. Bayer increased by 1.7 percent. Together with the Tübingen-based company Curevac, the pharmaceutical and agrochemical group wants to advance the further development, production and sale of a corona vaccine. Curevac benefited even more from the joint plans and gained around 15 percent.
Delivery Hero lost 2.9 percent at the end of the Dax. The food supplier had announced the evening before that they had obtained around 1.2 billion euros in fresh money from a capital increase. Stock marketers justified the price losses with profit-taking after the shares jumped by almost 50 percent in the past four weeks.
The second row included the shares of Knorr brake with plus 1.6 percent and the Kion papers with a premium of 4.9 percent in view, Bank of America had recommended both stocks for purchase.
The chemical trader's titles reached a record high Brenntag. The shares of the wind turbine manufacturer Nordex climbed 8 percent to the top of the SDax and reached the highest level since October 2016. This was not just another major order, but also the prospect of US President-elect Joe Biden spending trillions of dollars in a green infrastructure program in the coming years wants to invest.
The economic optimism was also reflected in the raw materials market. For the first time in almost a year, the price of nickel passed the $ 18,000 per ton mark. Because of the growing demand for electric car batteries, this industrial metal will become more expensive in the long term, forecast Commerzbank expert Briesemann. At $ 8,182, copper was as expensive as it was eight years ago.
"The stock markets worldwide rise in the hours in which the US democracy is shaken to its foundations," comments Markus Schön from the asset manager of the same name. After all, democracy and its foundations were violently attacked at the grassroots level. "Politically, the situation in the USA is more tense than it has been since the civil war. 15 to 20 million Americans are finally lost to the democratic system and offer a potential danger that should terrify the stock markets worldwide," says Schön .
Donald Trump supporters stormed the Capitol that night while Congress was preparing to formally confirm Biden's election victory. Wall Street then gave up profits, but the price did not slide. "That seems to be the ultimate epitome of four years of Trump's presidency. But no one believes that it will overturn the election results," comments Takashi Hiroki, chief strategist at trading house Monex.
The Nikkei index, which comprises 225 values, rose 1.6 percent to 27,490 points in the morning. In the meantime, it has even climbed to its highest level since August 1990. The broader Topix index rose 1.7 percent.