Dax and Euro Stoxx: The appointments of the day

Dusseldorf The Dax is struggling with losses at midweek. Following the highest closing price in two weeks on Tuesday, yesterday’s Wednesday was followed by the highest daily loss in two weeks. The leading German index closed 3.4 percent in the red and closed at 12,094 points from Frankfurt stock exchange trading.

On over-the-counter trading platforms the Dax is almost unchanged on Thursday morning at 12,100 points.

After Wirecard shares were the focus of the individual stocks on Wednesday, could on Thursday the Lufthansa shares cause movement in the markets. As of this week, however, the German airline is no longer listed in the first stock exchange league, but in the MDax, the index for medium-sized companies. The virtual action meeting will vote on the approval of the state rescue package for the airline from midday.

Trade stimulus could also give economic news. After the Ifo business climate index was surprisingly positive on Wednesday, GfK will publish its current study on consumer climate on Thursday. In the afternoon, two important benchmarks come from the United States: the gross domestic product in the third quarter and the currently well-received initial applications for unemployment benefits.

However, the Dax does not have to expect jump start from overseas. The US stock markets closed in the red. Infection numbers and fear of another lockdown are increasing in some U.S. states. The Tokyo stock exchange was initially weaker on Thursday.

1 – Requirements from the USA

The surge in new coronavirus infections in parts of the United States has put a temporary end to the Wall Street rally. The US standard value index Dow Jones closed 2.7 percent lower on Wednesday to 25,445 points. The technology-heavy Nasdaq dropped 2.2 percent to 9909 points. The broad S&P 500 lost 2.6 percent to 3050 points.

However, they were still well above their March lows. The Nasdaq even hit a record high on Tuesday and the S&P 500 is heading for its biggest quarterly gain since 1975.

“There is strong opposition to the reintroduction of the pandemic restrictions,” said Craig Erlam, market analyst at the Oanda brokerage firm. “But ultimately the government will probably have no choice. Some U.S. states have had record-breaking new infections in the past few days.

2 – Trade in Asia

The increasing number of coronavirus cases also increases investors’ fear of a second virus wave on the Asian stock markets. However, the trade tensions between China and the USA also shook the confidence of the markets in a rapid economic recovery. “The hard reality hits a bit,” said Damian Rooney of the stockbroker Argonaut in Perth. “I don’t think there was a particular drop that overflowed the barrel, but investors are a little bit restless – there are many reasons to be pretty careful.”

The markets in Hong Kong and mainland China are closed today due to a public holiday. The Nikkei index, comprising 225 values, was 1.4 percent lower at 22,230 points over the course of the day. The broader Topix index fell by one percent to 1,564 points. The MSCI index for Asian stocks outside Japan fell 0.1 percent.

3 – Decision on Lufthansa rescue package

At the former Dax group, the shareholders vote at an extraordinary general meeting (starting at 12 noon) as to whether or not they want the state to invest as a shareholder for around 300 million euros. This is closely linked to the nine billion euro rescue package that had been laboriously negotiated between Frankfurt, Berlin and Brussels in the weeks before.

If the state entry into the share capital fails, the rest of the rescue package consisting of a silent participation and a KfW loan will also lapse. On Wednesday evening, at least the largest single shareholder, Heinz Hermann Thiele, made it clear in an interview with the FAZ that he would vote for the package. So far, Thiele had criticized the measures. The markets will probably react to the news situation as soon as the stock market starts.

4 – Bayer settles with US plaintiffs in the glyphosate dispute

The chemical company from Leverkusen will pay up to around eleven billion dollars to settle thousands of lawsuits in the United States for Roundup, the weed killer containing glyphosate. The company announced this on Wednesday evening after the Frankfurt stock exchange closed. The company expects to pay a total of $ 10.1 to $ 10.9 billion to settle current glyphosate procedures and for possible future cases.

After the share price had already risen on Tuesday when the Handelsblatt reported on a possible settlement, it rose again in the USA on Wednesday evening.

6 – GfK consumer climate

The corona pandemic and the associated protective measures have hit consumer sentiment badly in recent months. The GfK study is based on around 2,000 consumer interviews in which the EU Commission has consumers surveyed every month.

7 – Metro closes the sale of its subsidiary Real

Almost two years after the first announcement, it is done: the last contracts are signed as planned and the SCP Group takes over the hypermarket chain Real. The seller Metro will still receive 300 million euros for the long-term loss-making daughter. Metro boss Olaf Koch has once again completely focused the group on its core business of wholesale.

The buyer will smash the Real department store chain: The digital business and 88 locations will be passed on to the competitor Kaufland. Other retailers have already announced their interest in the branches. Only around 50 stores will continue to operate under the Real name for two years.

6 – Nike presents years

For the first time, the new CEO John Donahoe presents the annual figures of the Adidas competitor on Thursday. The ex-boss of Ebay has only been leading the American sporting goods company Nike since January. Analysts and investors will look closely at how the brand performed in the corona crisis.

Because the past quarter includes the months of March to May, exactly the period in which most stores outside of China were at least temporarily closed.

8 – Results of the US stress test

The Federal Reserve will release the results of the bank stress tests this Thursday. They were added at the last minute. In order to take the effects of the corona crisis into account, the Fed expanded the stress test this year with a so-called sensitivity analysis.

The stress test will focus primarily on the results of Deutsche Bank. The Frankfurt financial institution had passed the test for the first time last year.

Company dates on June 25, 2020

  • 07:30 a.m., Austria: Zumtobel, annual figures
  • 9:00 a.m., Switzerland: V-Zug first listing on SIX
  • 10:00 a.m., Germany: Deutz, Annual General Meeting (online)
  • 10:00 a.m., Germany: Bauer AG, Annual General Meeting (online)
  • 10:00 a.m., Germany: Wüstenrot & Württembergische, Annual General Meeting (online)
  • 10:00 a.m., Germany: MLP, Annual General Meeting (online)
  • 10:30 a.m., Germany: Highlight Communications, Annual General Meeting (online)
  • 11:00 a.m., Switzerland: Swiss Re Media Day
  • 12:00 noon, Germany: Lufthansa, ao Annual General Meeting (online)
  • 12:00 noon, Germany: Zooplus, Annual General Meeting (online)
  • 2:00 p.m., Germany: DEAG Deutsche Entertainment, Annual General Meeting (online)
  • 8:30 p.m., USA: US bank stress / Part 1
  • 10:15 p.m., USA: Nike, Years

Dates for the economy on June 25, 2020

  • 6:30 a.m., Japan: All Industry Activity Index 04/20
  • 8 a.m., Germany: GfK consumer confidence 07/20
  • 8:00 a.m., Germany: Construction industry (incoming orders index) 04/20
  • 8:00 a.m., Germany: Residential property prices (house price index) Q1 / 20
  • 9:00 a.m., Austria: industrial production 04/20
  • 9:00 a.m., Spain: producer prices 05/20
  • 1:00 p.m., Turkey: Central Bank, interest rate decision
  • 1.30 p.m., Euro zone: ECB minutes of meetings 4.6.20
  • 2:30 p.m., USA: Inventories wholesale 05/20 (provisional)
  • 2:30 p.m., USA: Orders for durable goods 05/20 (provisional)
  • 2:30 p.m., USA: GDP Q1 / 20 (3rd release)
  • 2:30 p.m., USA: Private Consumption Q1 / 20 (3rd release)
  • 2:30 p.m., USA: Initial jobless claims

Here is the page with the Dax course, here are the current tops & flops in the Dax. Current short sales by investors can be found in our short sales database.

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