Thursday, January 07, 2021
Despite the US chaos
Dax breaks the 14,000 mark for the first time
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 cracked the round mark and rose by 0.8 percent to 14,006 meters – then the stock market barometer came back a little. The chaos in Washington obviously leaves investors indifferent.
The above-expected ISM index for the non-manufacturing sector from the USA could have provided the decisive impetus. The mood in the service sector surprisingly brightened with an increase to 57.2 points. This is to be rated positively, especially since a decrease was expected in the context of high numbers of new infections.
"Investors are counting on rapid US economic stimulus programs," commented analyst Milan Cutkovic from the Axi trading company in the morning. The future US President Joe Biden had previously campaigned for additional government spending. Now that the Democrats have gained control of the US Senate and thus of the entire Congress, Biden can now expect less political resistance.
There is an additional boost from the approval of a second vaccine in the European Union. Market observers warn, however: The investment crisis and risk appetite remain high despite all the uncertainties that still exist due to the pandemic.
"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.
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