Dax climbs record high: Investors on a buying frenzy – fuel from the USA

Monday, March 8th, 2021

Dax climbs to a record high
Investors on a buying frenzy – fuel from the USA

Hopes that the pandemic will subside dominate the stock exchanges. Investors are already converting their depots and are relying on the economy to pick up again – the USA is providing start-up aid in the form of a gigantic economic stimulus package. There is no holding back the Dax.

Driven by hopes of relaxation on the Corona front and spurred on by the US's new trillion program to support the economy, there was no stopping the German stock market at the beginning of the week. The leading index Dax broke several record levels and screwed its new all-time high to 14,403 points. It then went out of business only 22 digits deeper. For the Euro-Stoxx-50 it went up 2.6 percent to 3763.

Investors took hold of cyclical stocks in particular. The shift in many depots continued: The Corona darlings have to give way to the values ​​from the automotive sector, the tourism industry and the banking sector. The background is the hope that the economy will take off. This tendency continued at the beginning of the week in New York, where the Dow stole the show with its default values ​​from the technology-heavy Nasdaq indices.

The passing of the US Senate's $ 1.9 trillion economic stimulus program over the weekend, after it had previously been adjusted for non-majority points such as the increase in the minimum wage, worked as real fuel. This is also immediately good news for the stock exchanges. CMC referred to projections according to which between 100 billion and 150 billion dollars of it could end up in trading or stock savings accounts.

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The highlight of the week is the monetary policy decision of the European Central Bank (ECB) on Thursday. The question will be whether the ECB interprets the recent rise in bond yields as an expression of the improved economic outlook or as an undesirable tightening of financing conditions in the markets.

Swiss Post rewards investors

Under the Dax individual values ​​were at the end German postal service ahead and gained 6.5 percent. The share benefited from the announcement of a share buyback program of up to one billion euros and the announcement of a record dividend for the past year of 1.35 euros per share. The company will publish final business figures tomorrow. The focus is on the announcement of the outlook for 2021 to 2023. Papers by Continental, BMW and Daimler advanced between 3.2 and 5.3 percent, while those of the German bank rose by 4.3 percent to a high since 2018.

It also went up for the papers of the Lufthansa and the airport operator Fraport in the MDax by 5.7 and 7.4 percent respectively. Against this background, shares from the aircraft industry were also in demand. airbus recorded a price increase of 5.4 percent. At the aircraft manufacturer, deliveries of new machines picked up a bit in February after a weak start to the year. The engine manufacturer's shares were in tow MTU in the Dax by 4.9 percent.

Vaccine manufacturer takes off

For the share of Bavarian Nordic it went up in Copenhagen by 9.9 percent. The preclinical studies with the Covid-19 vaccine candidate ABNCoV2 were rated positively on the stock exchange. The first human testing of the vaccine should begin shortly at Radhoud University Medical Center in the Netherlands. The company announced that the latest data confirmed a strong immune response and protective effect of vaccination after infection.

The fact that major shareholder Pierer played an active role in his investment was rated positively on the stock exchange Leoni want to take. "Pierer is well connected," said one market participant. He got involved in the ongoing turnaround with the cable and wiring system specialist. Leoni would have taken the momentum from the convincingly good fourth quarter into the new year, which can also be seen in the share price. Leoni won 11.8 percent.

The share went up by seven percent SGL carbon. The value surprisingly returns to the SDAX. Since the beginning of the year, the share has already been up over 80 percent, which is also a cornerstone for the return to the Dax family.