The stock markets continued to lose ground. Weak corporate results, the ongoing Brexit negotiations and the pending decision for or against another US economic stimulus program made investors act more defensively today. The DAX® lost around 1.3 percent to 12,570 points and the EuroStoxx®50 around 1.4 percent to 3,180 points. Numerous company results from Europe and, among other things, labor market data from the USA are expected tomorrow. However, the focus should primarily be on reports relating to a US economic stimulus program.
Most of the bonds on the bond market gave way today. The yield on 10-year Bunds rose by two points to -0.59 percent and the yield on comparable US bonds improved to 0.82 percent. The precious metals presented themselves more firmly today. The price of gold distanced itself from the mark of 1,900 US dollars and the price for one troy ounce of silver rose to over 25 US dollars. The oil price hovered around yesterday’s range today. So there was still no significant upward or downward movement. Meanwhile, the euro / US dollar broke above the 1.183 US dollar mark. The next hurdle is now at $ 1.195.
Company in focus
The share of Bilfinger was spurred on by takeover speculation. The flight above the EUR 8 mark stopped the share of the German Lufthansa not long. With a minus of 4.2 percent, the airline was at the bottom of the MDAX® today. Software AG today reported key data for the past quarter. Accordingly, sales and profits were weaker than expected by many market participants. The only bright spot was the incoming order. However, that was not enough for investors. The losses since the recent high have now totaled over 20 percent. Vivendi presented good results. Especially the music division Universal Music caused a good mood among investors today. Today the charging station provider left Compleo to the stock exchange. The issue price was EUR 49. At the close of trading, the share was quoted at EUR 47.00.
Netflix came under pressure in the first hours of trading today after weak quarterly results. Snap In contrast, surprisingly generated a profit in the third quarter. Today after close of trading Tesla Publish numbers.
From Europe report tomorrow among other things ADVA Optical, Kering, Kone, L’Oreal, Michelin, Pernod Ricard and Unilever Business figures for the past quarter. In the US stand among other things AT&T and Intel and their business figures in focus.
- Germany – Gfk consumer confidence index for November
- Europe – Eurozone Consumer Confidence, October
- France – Business Climate, October
- United States – Initial Jobless Claims for the Week Ending October 17
- USA Leading Indicators, September
Chart technical outlook
Resistance marks: 12670 / 12,800 points
Support marks: 12,360 / 12,510 / 12,560 points
The bears temporarily pushed the DAX® down to 12,560 points in the morning. In the further course, the index fluctuated between 12,560 and 12,680 points and closed at the lower end of the range. If the index falls below 12,560 points, the downward trend threatens to continue to 12,510 points. A recovery can be seen at the earliest above 12,670 points.
DAX® in points; Hourly chart (1 candle = 1 hour)
Observation period: 25.09.2020 – 21.10.2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
DAX® in points; Weekly chart (1 candle = 1 week)
Observation period: 10/22/2013 – 10/21/2020. Historical considerations are not reliable indicators for future developments. Source: tradingdesk.onemarkets.de
Inline warrants on the DAX®
|Underlying||WKN||Sales price in euros||Lower knock-out barrier in Point||Upper knock-out barrier in pt.||Final Valuation day|
|DAX®||HR03N7||5.08||12,000||15,100||December 17, 2020|
Source: HypoVereinsbank onemarkets; Status: October 21, 2020; 5:34 pm
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The daily outlook for October 22nd: DAX continues to decline. Tesla, Bilfinger and Compleo in focus! first appeared on onemarkets blog (HypoVereinsbank – UniCredit Bank AG).
Author: Richard Pfadenhauer