Markets

Dax runs out of breath shortly before a record high

D.The Sentix sentix, based on surveys of investors on the German stock market, already indicated it at the weekend: “Now they are on the agenda, profit-taking!” wrote the two Sentix operators Manfred Huebner and Patrick Hussy. They had identified “harbingers of pending sales” among strategic stock buyers and at the same time identified an “upward trend” among short-term speculators. This created an “unfavorable starting position for shares in the next trading weeks”. “The 2020 Christmas rally should be over”, they concluded from the Sentix.

At least for the beginning of the week, the Sentix is ​​proving to be a good prognosis. The Dax was only a stone’s throw away from the Dax on Friday by 1.2 percent to surpass its all-time high of 13,795 points from February. But the Dax initially moved away from this record on Monday. After the German share index closed on Friday at 13,630 points, it temporarily lost more than 4 percent on Monday.

The Dax opened with 13,320 points, recovered briefly to 13,390 points, until another attack of weakness hit him. By noon, the Dax lost its top to 13,070 points. The food delivery company Delivery Hero was the only DAX stock with price gains. On the other hand, the shares of Munich Re and Deutsche Bank lost particularly significantly by more than 5 percent.

Lufthansa loses heavily

News from Great Britain provided investors with a reason to sell stocks. A dangerous mutation of the coronavirus has appeared there, which is said to be significantly more contagious than the previous variant. The travel restrictions imposed by the politicians, such as the widespread suspension of air, ship and rail traffic between the EU and Great Britain, worried investors because they are affecting economic performance. Unsurprisingly, the Deutsche Lufthansa share was the biggest loser in the M-Dax with price losses of more than 9 percent. The shares of the London Stock Exchange lost
British Airways parent IAG and Easyjet a good 20 and 18 percent respectively, the titles of the Eurotunnel operator Getlink and the airport operator ADP lost 7 and 6 percent respectively
a.

In addition, a Brexit trade pact between the EU and Great Britain is still not in sight. With a shrug, however, most investors take note of the new $ 900 billion stimulus package in the United States, which after long negotiations should finally find approval in the Senate and House of Representatives. Although further corona aid is good for the economy, it is said to be largely “priced in” on the stock market.

Nevertheless, the Dax all-time high remains within reach for the coming days. In the medium term, share prices are driving expansionary monetary and fiscal policy, which is reflected in the Corona crisis in even lower interest rates and government aid for closed businesses. In addition, many people who are not affected by short-time working and other restrictions have saved a lot in the past few months out of uncertainty.

Strong euro burdened

This money arouses the imagination among investors that the huge sum of 100 billion euros that has been put back by German households alone will flow into consumption again in the coming year. Sectors that suffered particularly during the corona pandemic, such as the travel industry, could benefit from this. The biggest pillar of the global economy is currently the strong recovery in Asia. Chinese exports, for example, grew by a significant 21 percent this November compared to November 2019.

On the other hand, the strong euro is slowing down German share prices. The European common currency rose last week to $ 1.227, the highest rate since summer 2018. This worsens the sales opportunities for European companies on the world markets. On Monday morning, one euro was $ 1.218.

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