Status: 23/06/2022 10:06
Alarmed by the surprisingly negative economic data, today investors are separating themselves from equities again. The DAX continues its descent and collapses below an important mark in the technical ranking.
At the start of trading, the DAX was down around 1.4% to 12,980 points. “If the index sustainably crosses the 13,000-point mark, a test of the year’s low of 12,438 points should be unavoidable,” market watchers from Helaba predict. Yesterday, Germany’s leading index lost 1.1% to 13,144 points after three friendly trading days.
The main theme of the market is once again the impending recession. US Federal Reserve chief Jerome Powell “didn’t exactly help calm things down” with his statements yesterday, Commerzbank analyst You-Na Park-Heger commented.
Fed chairman Powell said nothing surprising: on the one hand, he described the US economy as “very strong” and able to cope with interest rate hikes. On the other hand, he admitted that a recession due to rising interest rates is “certainly a possibility”.
As for Germany, this is also indicated by the first estimate of the purchasing managers indices in June: both the purchasing managers index for services and the industry index were weaker than expected. The DAX therefore increased its losses after an already weak start.
Recession concerns weigh on Wall Street
The specs of US stock exchanges are weak, partly due to fears of a recession. The Dow Jones closed 0.2% lower at 30,483 points. The heavily tech-heavy Nasdaq fell 0.2% to 11,053 points. The S&P 500 lost 0.1% to 3759 points.
Nikkei up, Topix down
There was no clear direction on Asian exchanges: the Nikkei closed 0.1 percent higher at 26,171 points, the Topix index weakened 0.1 percent. In China, investors are counting on further economic stimulus packages from the government. The Shanghai Stock Exchange grew by 1.3%. The values of the cars in particular were in demand. State media, citing a cabinet meeting, reported that Beijing wants to help the sector and increase demand.
Concerns about the recession also weigh on oil prices
Oil prices fell again in early trading today. In the morning, a barrel (159 liters) of North Sea Brent cost $ 110.14. It was $ 1.60 less than the day before. West Texas Intermediate (WTI) barrel prices fell $ 1.79 to $ 104.40. Prices are hovering near the lowest levels in just over a month.
Oil prices are increasingly weighed down by fears of an economic recession. In the background are the consequences of the war in Ukraine and the struggle of many central banks against high inflation. The warnings of an impending recession are being heard more and more often in the financial markets.
The Monte Paschi crisis bank plans a capital increase
The nationalized Italian crisis bank Monte dei Paschi di Siena (MPS) is planning a capital increase of around € 2.5 billion to finance a new strategy. With this, net income is expected to triple over the next three years, the bank announced. As part of the new business plan, MPS aims to reduce the cost share of revenues from 71% last year to 60% in 2024. The plan provides for the closure of 11% of branches and the voluntary exit of approximately 4,000 employees .
Musk: Tesla factories in Grünheide and Texas are losing billions
According to CEO Elon Musk, the new Tesla factories in Grünheide and Texas are currently losing billions. The reason is the lack of batteries and supply chain problems due to the situation in Chinese ports. In Texas, at the moment, only a handful of cars would roll off the assembly line.
EU: fewer commercial vehicles allowed
The demand for commercial vehicles in the EU continues to weaken. In May, with 136,410 units, almost 18 percent fewer commercial vehicles were registered than in the same month last year, according to the trade association Acea. Since the beginning of the year, the minus has amounted to almost a fifth to 673,095 vehicles. At least the demand for heavy trucks and buses is picking up. The overall decline is due to the decline in registrations of light commercial vehicles up to 3.5 tonnes, which account for the majority of registrations.
Microsoft: Ukraine’s allies targeted by Russian hackers
According to Microsoft, Russian hackers are attacking Ukraine’s Western allies on a large scale. The software group warned that they were specifically targeting government computers in NATO countries. Target number one is the United States, but overall, Microsoft experts have identified attacks by Russian hackers on 128 organizations in 42 countries outside Ukraine.
Shortage of parts: VW cuts working hours and wages in Brazil
Volkswagen is reducing working hours and wages at its plant in Brazil due to supply bottlenecks. The union accepted the German carmaker’s proposal to cut working hours by 24% and wages by 12% since July to avoid closures, union representative Wellington Damasceno said. The agreement will enter into force indefinitely from July 7, when workers are expected to return from a 10-day detention. The measure will be reviewed monthly and the end will depend on the normalization of the supply of auto parts.
Netflix Coming With Announcements Soon
Shares of streaming provider Netflix rose yesterday in US trading. Retailers attribute this to a report in the “Wall Street Journal” that Comcast, NBCUniversal or Google could partner Netflix with a new ad-supported subscription option at a reduced price. Netflix announced a loss of 200,000 subscribers for the first quarter. The group had expected 2.5 million new customers.