Monday, January 4th, 2021
Unexpected stock market slump
Wall Street collapses after a record start
Both the Dax and the Dow Jones start the new stock market year with records. But then the prices plummet again. On the German markets, the indices save a slight plus in the target, on Wall Street they collapse. Only Tesla can break away from the trend in the USA.
On Wall Street, prices fell at the beginning of the new stock market year. The leading index started Dow Jones with markups and a record high in the first trading day of the year. Over the course of the year, however, the index slipped and was around 1.7 percent in the red at 30,076 points 90 minutes after the start. The technology-heavy one Nasdaq lost 0.8 percent to 12,784 points. The broader one S&P 500 fell 1.1 percent to 3715 jobs.
The development came as a surprise to many stock exchange traders. A trader had declared before the opening that regardless of the news situation, it would keep going up. Rising numbers of coronavirus infections or stricter pandemic restrictions would only fuel hopes for additional economic aid.
Was able to disconnect from the trend Tesla. Vehicle sales in 2020 that were above expectations drove the share up just under five percent to an all-time high of just under $ 745. In mid-March the papers were still available for $ 70. Not all experts trust the development. The analysts at JPMorgan raised their target price on Monday, but at $ 105 it is hundreds of dollars below the current price. On average, Wall Street analysts have a target price of just under $ 425 for Tesla.
Delivery Hero convinces in the Dax
In contrast to the American draft horses, the most important German indices started the new year with records. The Dax climbed a further record at a good 13,907 points before the stock market barometer was temporarily pushed into the red by profit-taking. In the end, the Dax managed a mini plus of 0.06 percent to 13,726 points. The SDax small cap index and the MDax for medium-sized stocks also reached highs. At the close of trading, the MDax but only by 0.50 percent to 30,950 points and the SDax by 0.58 percent to 14,850 points.
In general, the mood on the stock market remains good, although investors made good money in many places. The investors continue to rely on the vaccines against the coronavirus, a recovery in the economy and the permanent support of the central banks. "Investors continue to see the economic recovery as intact, and that seems to be sufficient for the moment," wrote market analyst Jochen Stanzl from trading house CMC Markets.
With the food deliverer Delivery Hero At the start of the new year, the top value of the previous year was again number one in the Dax with a record high and an increase of 7.5 percent. The group has been benefiting from the corona crisis for months: restaurants are closed due to the lockdowns, and where they are open, many people no longer dare to go into restaurants for fear of corona infection. This trend is fueling the business of the company, which only moved up into the top German stock exchange league in August for the payment processor Wirecard, which went bankrupt after a balance sheet scandal.
Top values in MDax and SDax
With a premium of almost 9 percent, shares at the top of the MDax benefited from K + S from an optimistic study by the US bank Citigroup on the fertilizer market. The papers of United Internet recovered further from the price slump in September and gained 4.5 percent. In a study, analyst Jonas Blum from Warburg Research said he was positive about the offer from Morgan Stanley Infrastructure Partners for United's investment in Tele Columbus. Blum believes in a value-adding effect.
With a jump to a record high, the papers of Encavis the investors. The operator of solar parks and wind turbines is seen as benefiting from the climate change. The shares secured first place in the index with an increase of a good nine percent.
Also the EuroStoxx 50 had to give up in late trading and only moved 0.33 percent to 3564 points in the end. The French Cac 40 won 0.68 percent and the British FTSE 100 gained 1.72 percent in view of strong raw material values.
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