D.he New York stock market started trading with a plus on Wednesday after the slump the day before. The traditional Dow Jones Industrial stock market index was ahead by 0.8 percent to 27,734 points. The Nasdaq technology exchange index, the Nasdaq 100, rose even more significantly by 1.9 percent to 11,289 points. Technology stocks in particular suffered from a sell-off on Wednesday, especially Tesla, with an unprecedented drop of 21 percent.
After the three-day price slide on Wall Street, there are signs of a slight recovery overall. Around an hour before the start of trading, the broker broker IG had assessed the Dow Jones Industrial with 0.92 percent up at 27,756 meters. The positive start was also expected on the technology-heavy Nasdaq stock exchange, which is the starting point of the price quarrels.
On Wednesday, the American stock exchanges continued their price slide unchecked after the long weekend. In three trading days, the Nasdaq 100 was down more than eleven percent from its record set last week. The correction was quick and inevitable in view of the previously exceptional stock market year, wrote Craig Erlam from broker Oanda.
Above all, stocks from the social media, internet, software and semiconductor sectors had risen steadily in the past few weeks. Investors had counted on a quick recovery from the corona crash, but most recently investors had taken profits. For example, the shares of the electric car manufacturer Tesla, which were fueled by the stock market hype, were hit particularly hard.
Stockbrokers are now wondering whether the market has already bottomed out or whether the correction will continue. According to Erlam, investors are faced with a problem: “The world will never be the same as it was in February, but it will also not go on as it was before. The distance between the two realities is wide, which makes it harder than ever to measure the value of companies. “
One of the main drivers of the courses in the past few weeks was the hope for a quick vaccine against the novel corona virus. News from the British pharmaceutical company Astrazeneca, which is temporarily stopping its vaccine tests due to health problems of a test person, caused a brief mood dampener in Europe on Wednesday. However, analysts spoke of a routine case that should not be overstated until one knows more about it.
Meanwhile, shares in industry colleague Pfizer were priced a good one and a half percent higher. The pharmaceutical company and its German partner Biontech announced negotiations with the EU Commission about a supply contract for their corona vaccine. Corresponding exploratory talks have already been held. The plan is to deliver 200 million cans with an option for a further 100 million cans. The first delivery of the preparation, which at the moment still has to prove itself in clinical tests, is planned for the end of 2020.
Investors should also keep an eye on the shares of the Tiffany jewelry chain, as the takeover by the French luxury group LVMH threatens to burst. Before the trading day, Tiffany shares were down by almost a fifth at times, most recently the minus was just under nine percent. According to its own statements, LVMH sees itself “from today’s perspective not in a position to carry out the acquisition as planned”. Tiffany now wants to enforce the takeover by lawsuit. With an agreed $ 16.2 billion, the acquisition would be the most expensive deal in LVMH’s history.
The Dax, on the other hand, was stable. Even a setback in vaccine development against Covid 19 did not prevent the leading index from rising again well above the 13,000 point mark on Wednesday. In the afternoon, the leading German index gained 1.19 percent to 13,123 points.
Slightly less than the Dax, the M-Dax of the medium-sized values increased by 0.6 percent to 27,373 points. The leading Eurozone index EuroStoxx posted an increase of one percent.
The pharmaceutical company Astrazeneca stopped a clinical trial for its corona vaccine as a precautionary measure after one of the participants developed health problems. But there was also positive news on the Corona issue, from Qiagen. The biotech and genetic diagnostics company plans to introduce a Covid-19 rapid test in the fourth quarter. The test should deliver results within 15 minutes. The Qiagen papers gained 2.5 percent.
In the Dax, Munich Re remained at the top in the afternoon with a plus of 3.8 percent. There were positive analysts here. In contrast, papers from the aviation sector, which was badly hit by the Corona crisis, tended to be very weak. Lufthansa, Fraport, Airbus and MTU lost up to 2.8 percent in some cases. Commerzbank wrote to Lufthansa that although the cargo business was still going strong, the airline lacked long-haul flights in particular.