Saturday, January 16, 2021
Difficult way over the 14,000
Can Biden pull the Dax up?
The Dax cannot hold the 14,000 points from the first week of January. And in the coming days, too, it will be difficult to reach new heights. The uncertainties due to new corona measures are too great for that. Even the new US president cannot change that.
The Dax, which was record high at the beginning of the year, is facing the next endurance test in the new week. The eyes of investors are likely to be focused primarily on the beginning of the quarterly reports season, the transfer of power in Washington that is imminent on Wednesday and the other corona measures. Chancellor Angela Merkel wants to discuss the next steps with the Prime Ministers of the federal states on Tuesday and not on January 25th as originally planned.
On Friday the Dax was down 1.44 percent to 13,787.73 points. On a weekly basis, this broke him a minus of 1.9 percent. With the first rise above 14,100 points, investors had missed their powder in the first week of January. The Dax recently fluctuated between 13,800 and 14,000 points, and further setbacks cannot be ruled out.
In the new week there will be fresh impulses from the leading US stock exchanges only on Tuesday: On Monday, trading in New York will stop on "Martin Luther King Day". At the beginning of the week, people will instead be looking at economic figures from China, which is currently an important pillar of German exports. Commerzbank expert Schickentanz believes it is possible that the Chinese gross domestic product increased by around six percent in the fourth quarter.
FBI warns of inauguration violence
The reporting season in the USA will start on Tuesday with company figures mainly from the banking sector and later also from technology stocks such as Intel or IBM. If US President Donald Trump has to resign from office on Wednesday, the baton does not threaten to be handed over smoothly. After the recent riots on and in the Capitol, the FBI is warning of potential acts of violence surrounding the swearing-in of Joe Biden, who wants to put together a new corona aid package worth $ 1.9 trillion.
The ECB will also decide on its interest rate policy on Thursday. Paul Diggle from Aberdeen Standard Investments does not expect any political decisions and instead rather statements about the economic effects of the renewed lockdowns and the Brexit deal.
The agenda at the end of the week is rounded off by purchasing manager data from the eurozone, which is an important barometer of sentiment among companies' management levels. On the corporate side, the shares of PSA and Fiat Chrysler will be history from Monday, when the car companies will form a new giant with 14 brands under the name Stellantis.