D.he record corona infection numbers from the Robert Koch Institute caused a bad mood on the German stock market on Thursday morning. The Dax share index lost more than 2.5 percent to less than 12,700 points, the lowest value in ten days. After two hours of trading, there were no price winners among the 30 DAX stocks, but all the more significant losers. And they came from one industry: the automotive sector.
That seems quite logical, because if the corona numbers continue to rise, there could be a second lockdown. Above all, however, the much-criticized bans on accommodation are unlikely to go away. This would mean that citizens would lose their freedom of mobility and, in the end, perhaps drive less or no car at all, which is probably the calculation of some stock exchange traders.
It is not entirely by chance that among the three DAX auto stocks Daimler, BMW and Volkswagen, the price losses of VW were the most significant at around 4 percent. Because in addition to the burden on the industry from Corona, Volkswagen also has an individual problem: The subsidiary Traton is currently not making progress with the planned takeover of the truck manufacturer Navistar.
VW still has its own problem
Traton recently increased its offer to $ 43 per Navistar share. This offer will only run until Friday 6 p.m. Central European time, announced the German group and thus tries to put the Navistar board of directors under pressure to approve. But investors are increasingly assuming that the transaction will fail. At least this is indicated by the violent reaction of the Navistar share, whose price lost 18 percent on Wednesday.
Aviation another loser
Even in the M-Dax, after two hours of trading on Thursday, there was no price winner among the 50 German small caps. But here, too, a connection can be made between the tightening of the corona and the biggest loser in the M-Dax – Airbus shares with around 2 percent. And this despite the fact that the aircraft manufacturer Airbus is setting up a joint venture with the supplier Elring-Klinger to develop fuel cells for aviation. That should be good news for the stock market. The Elring-Klinger share also rose strongly by 15 percent.
But for Airbus, investors apparently did not want to look too far into the future. They know that the corona numbers in almost all other countries are even higher than in Germany and suspect that at least in the near future, fewer flights will be flown and fewer aircraft will be ordered. This train of thought does not make the course losses of Airbus arbitrary, but even understandable.
This also fits the news that the American airline United Airlines lost 78 percent of its revenue from the quarter of 2019 in the third quarter of 2020. No wonder that there was a quarterly loss of 1.8 billion dollars (1.5 billion euros). On Wednesday evening in New York, however, investors reacted calmly to this not unexpected loss, with the price of United shares closing 1 percent higher. But with this serenity it was over at Europe’s stock exchanges on Thursday morning.