DAX at 13,000 points: caught in the bear market

market report

Status: 22/06/2022 09:50

Even today, fears of inflation and the economy have investors firmly in their grip. Yesterday’s gains were wiped out in early trading. The DAX is back at 13,000.

Shortly after the start of the stock exchange, the main German index slipped today. The DAX is currently posting losses of around two percent. Yesterday’s slight optimism has already faded.

Wall Street up, Asia down

The US standard value index Dow Jones closed in the evening on Wall Street a rise of 2.2% to 30,530 points. The high-tech Nasdaq gained 2.5% to 11,069 points. The S&P 500 gained 2.4% to 3764 points. However, in American after-hours trading, prices in New York were already dropping again.

In Asia, too, investors found it more difficult to buy back stocks in the morning. The Japanese Nikkei index lost 0.4% to 26,150 points. The Shanghai Stock Exchange fell 0.4%. The index of the most important companies in Shanghai and Shenzhen lost 0.5 percent.

Federal Reserve Chairman Powell before the United States Congress

Comments from a member of the US Federal Reserve (Fed) also fueled fears about the economy. Thomas Barkin believes that a quick return to a stable US economy is out of the question. The United States has been relatively unstable for about two years, the Federal Reserve Bank of Richmond monetary watchdog said.

Fed Chairman Jerome Powell will also be speaking to the Senate Banking Committee tonight. It follows the highest interest rate hike in the United States since 1994, decided last week.

The euro slides below $ 1.05

The European common currency is again in a difficult position against the US dollar: in the morning the euro slipped below the $ 1.05 threshold and is currently trading well below it at $ 1.0477.

The price of oil reflects economic fears

Concerns about the economy are likely to be the main reason for the drop in oil prices. In the morning, the two most important varieties each lose about three percent compared to yesterday. A barrel of the US WTI variety currently costs $ 105, a barrel of the North Sea Brent variety is priced at $ 108. The gold of the precious metal just changed in the morning at 1836 dollars.

The head of BASF is pessimistic

In the DAX, investors are initially focusing on BASF and Bayer. BASF shares are down about 4% after CEO Martin Brudermüller prepared investors for tough times at a conference yesterday. In the second half of the year, BASF will no longer benefit from its competitors’ previous supply chains and there will also be high energy costs, he said. “It sounds very cautious and pessimistic, even though no figures have been provided,” said a trader.

Bayer under pressure after court decision

The US legal defeat in the glyphosate herbicide dispute continues to cause problems for Bayer shares, which are currently losing around two percent. The US Supreme Court had dismissed the pharmaceutical and agrochemical company’s appeal. Had it come to a hearing and Bayer had won, the Leverkusen team could have ended the costly litigation over alleged cancer risks from glyphosate-containing herbicides.

Daimler Truck before the first AGM

Truck and bus manufacturer Daimler Truck invites you to its first public general meeting in Stuttgart. During the online meeting, CEO Martin Daum and Chairman of the Supervisory Board Joe Kaeser will provide information to shareholders. Last December, the former Daimler group, which now operates under the Mercedes-Benz name, spun off its truck and bus business. The largest single shareholder of the Swabian truck manufacturer is the Mercedes-Benz subsidiary with around 30 percent.

FMC remains calm after the court ruling

Dialysis specialist Fresenius Medical Care (FMC) sees no impact on its business after the US Supreme Court ruling against its competitor DaVita. Yesterday, the Supreme Court dismissed a lawsuit by DaVita, in which the company wanted to get more reimbursements for treatment from a US hospital’s private health insurance. FMC shares in the DAX continue to decline by nearly three percent

Salzgitter’s share has been downgraded

The steelmaker’s stock certificates also drop significantly in the morning. JP Morgan analysts downgraded the stock’s rating to “Underweight” from “Neutral” and downgraded the target price to 31.60 from € 44. Fears of lower commodity demand from the large customer China following the corona restrictions had recently put pressure on the sector.

Novartis with approval success

Swiss pharmaceutical company Novartis has received EU approval for its lung cancer drug Tabrecta. In the future, the drug may be used in patients with a specific form of lung cancer with a special genetic modification. Tabrecta is therefore a targeted therapeutic option for previously treated patients. After the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use (CHMP) had already given a positive assessment in April, the actual approval comes as no surprise.

Moderna starts production in the UK

US vaccine manufacturer Moderna is building a new research and manufacturing center in Great Britain. The UK facility is expected to start producing vaccines against new variants of Covid-19 and other diseases in 2025. Further details such as the exact location or estimated capacity of the facility were initially not known. The UK Department of Health welcomed the move. The pandemic has shown that mRNA technology is one of the fastest ways to develop new vaccines and can also be applied to other areas such as cancer, flu, dementia and heart disease.

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