Monday 28 December 2020
Update
"It could hardly be better"
Post-Brexit deal and US aid pull Dax to record high
Investors are driving the German stock market to new heights shortly before the end of the year. The reason is the prospect of overcoming the economic weakness. The optimism is fed mainly from three sources.
At the start of the last week of trading of the year, the German leading index Dax reached a new record high. Fuels are the agreement on an EU-UK trade agreement that will likely prevent a no-deal Brexit, the signing of a new US economic stimulus package by President Donald Trump and the start of corona vaccinations in the EU. "The news and mood on the stock market could hardly be better at the end of a turbulent stock market year," summarizes market analyst Jochen Stanz from broker CMC Markets.
Great Britain and the EU had agreed on a free trade agreement on Christmas Eve. "The agreement is good and is fair to both sides," said Thomas Gitzel, chief economist at VP Bank. Both "parted peacefully" and the agreement leaves room for future governments to intensify the trade relationship. In the USA, the incumbent President Trump gave up his blockade and put a $ 900 billion corona stimulus package into effect after all. This should help financially struggling citizens, give impetus to the troubled economy and provide additional funds for vaccinations and the fight against the coronavirus. In addition, a household shutdown is avoided.
Shortly after the starting bell, the stock market barometer climbed new heights and only stopped at 13,818.65 points. The German share index is quoted at noon Dax still 1.5 percent firmer at 13,800 points. The MDax gains 1.0 percent to 30,724 positions. The TecDax increases by 1.0 percent to 3215 meters. The EuroStoxx 50 as the leading index of the euro zone rose by around 1 percent.
That the Dax at the beginning of the year – burdened by the Corona crisis – fell within a few weeks from the previous high by more than 40 percent to 8255 points in March – apparently forgotten. Investors are now counting on a strong economic upswing. In addition, the central bank billions continue to flow around the globe – money that has to be invested somewhere.
Even at lunchtime, the Dax only knows winners – all 30 stocks trade with premiums. Remain unchallenged at the top Delivery Hero, which can now expand their plus to 8.4 percent. The food delivery company with no German business has received approval from the Korean antitrust authorities for the high-growth joint venture with the South Korean Woowa – on condition that the Korean subsidiary Yogiyo is sold. German postal service go up by 2.4 percent. Here CEO Frank Appel had promised new record quantities of parcels transported this year – and at the same time a record profit. The lowest surcharges are recorded, among other things, by car values Daimler, BMW and Volkswagen.
Sort yourself in the second row Lufthansa and Fraport two companies particularly hit by the corona crisis among the winners. Here the prospect of an upturn in tourism attracts investors. In addition, the airline has reduced costs in the Corona crisis much faster than planned, CEO Carsten Spohr told "Welt am Sonntag". While it is up by more than seven percent for the airline, Fraport is increasing by 3.5 percent. Hellofresh climb by 6.1 percent in the suction of delivery. Leave feathers at the bottom under others Zalando and even more Sartorius.
Put in the TecDax Nordex their ascent continued. For the wind turbine manufacturer, it is a further 3.8 percent. In the current year, the paper has already increased in price by almost 80 percent.
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