Thursday May 13th 2021
Short correction or sell-out?
Dax rescues itself after a slide in the course in the plus
Business on the German stock market is very quiet due to the public holidays. Company announcements are rare. After a ride up and down the Dax closes in the plus. Bitcoin is once again turbulent after Tesla has stopped paying with the digital currency.
After an extremely volatile course, Europe’s stock exchanges closed with small premium. The Dax gained 0.3 percent to 15,200 points. The daily low was at 14,816 points. The Euro-Stoxx-50 gained 0.1 percent to 3952. Weak US guidelines weighed on early business. The market then recovered in the afternoon.
The US initial jobless claims were slightly better. The announcement of US producer prices also had a supportive effect. Although these were well above the forecast, the deviation was smaller than the previous day for US consumer prices. Some investors are likely to have bet on a similarly strong increase. Viewed in this way, the current data should somewhat defuse the inflation debate. The day before, US consumer prices had fueled the already circulating speculation that the US Federal Reserve might abandon its extremely loose monetary policy earlier than previously thought. This had weighed heavily on the US stock exchanges.
According to portfolio manager Thomas Altmann from QC-Partners, investors are now concerned with the question of whether the recent price losses are only a brief correction or the beginning of a major sell-off. “Everyone is afraid of losing their book profits again. At the same time, the fear of selling into the falling market and not being part of the subsequent recovery is just as great.” In the Dax, therefore, the willingness of investors to buy has recently increased again just below the 15,000 point mark.
Across Europe, investors switched from risk assets to supposedly safe havens. In this country, for example, the defensive utilities and stocks from the narrow and broader pharmaceutical sector benefited. In the Dax, RWE climbed a good 2 percent at the top of the index. Shares in dialysis provider Fresenius Medical Care (FMC) and pharmaceutical and specialty chemicals group Merck KGaA stood out with premiums of 1.5 and 1.8 percent, respectively. In contrast, investors avoided the cyclicals from the automotive sector, which are particularly dependent on the economy. In the Dax, Daimler and the tire manufacturer Continental had to accept discounts of around one percent each.
Most of the stock exchanges in Europe were traded in the same way as in Germany; the stock exchanges in Denmark, Finland, Norway, Sweden and Switzerland remained closed due to the holiday. Business figures were presented by Telefonica (-0.5 percent), Burberry (-4.2 percent) and BT Group (-5.9 percent). Telefonica’s numbers were not as bad as feared, but Citigroup believes that investors are likely to remain concerned about the weak fundamentals.
At Burberry, the numbers read well, but the outlook created a bad mood. The company has warned of higher costs such as returning to normal post-pandemic investments that will hurt margin growth. With regard to the minus of BT Group, reference was made to a mixed outlook. Pirelli’s figures (+2.6 percent) for the first quarter were classified as “in line”. The earnings development at the Italian tire manufacturer was assessed as slightly positive.
Bitcoin was once again turbulent. During the night, it fell below $ 46,000 and closed at $ 49,750, down from $ 54,800 on Wednesday night and $ 57,500 in the previous day’s high. The background to this was that Tesla stopped the payment option with Bitcoin again due to the high power consumption for climate protection reasons.
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