Dusseldorf The German stock market defends its recent gains in the last week of trading of the year. The leading index Dax was 0.1 percent up on Monday morning at 15,775 points. The mini-rally of the past few days is thus intact, the next resistance is the 15,800 mark.
Portfolio manager Thomas Altmann from QC Partners, however, is skeptical that this mark will fall on Monday: “Today the motto of the day is take a deep breath. After the price gains in the Christmas week, things are going sideways for now. “
In the week before Christmas, the Frankfurt stock market barometer had risen by 700 points. Against this background, a setback would not be surprising, but prices are expected to continue to rise in the long term, write the analysts at UBS.
The important thing is the 200-day line that the Dax regained last Wednesday. This line shows the moving average of the past 200 trading days and is mainly used by long-term investors. Prices above the 200-day line are considered an upward trend; the line currently runs at just over 15,500 points.
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Until the end of the year there are hardly any relevant economic data or company appointments, investors are therefore concentrating all the more on the development of the corona pandemic – and the numbers are increasing worldwide: For the first time in France there were more than 100,000 infections in one day, China reported at the weekend the highest daily increase in 21 months.
Most new infections are associated with the Omikron variant. As far as we know, this is less dangerous, but also more contagious than other virus variants. The fear is that the sheer volume of cases could overwhelm the hospitals as a result.
In the past week, some encouraging news about the effects of vaccinations against Omikron had ultimately tipped the scales in favor of a positive outcome. Accordingly, the current development is making investors more cautious again, after all, the corona pandemic is the greatest economic risk.
Top economist Marcel Fratzscher warns in the Handelsblatt that new economic upheavals will inevitably threaten if the 2022 pandemic cannot be finally brought under control worldwide. “That could be the case with global supply chains, for example, or with a view to consumer demand, since people prefer to put their money on the high edge in times of such uncertainty,” explains the President of the German Institute for Economic Research (DIW).
The trading days between Christmas and New Year are considered to be the period with the lowest trading volume, which can lead to larger price fluctuations. “Either the headlines will trigger ugly intraday movement due to the liquidity thinned out by the holidays, or the volatility will stay so flat that if it was an EKG, the doctors and nurses would scream ‘Code Blue’,” explains Jeffrey Halley, senior market analyst at brokerage firm Oanda.
Many institutional investors have already closed their books for the current year. This can lead to price jumps because professional investors fail as a corrective. “The investors who are still active will only then take up new positions. when they smell bargains, ”explains Altmann. “It is more likely that after the price gains before Christmas, profits will now be taken.”
Look at individual values
Lufthansa: The cancellation of 33,000 flights from mid-January due to lower demand is putting a strain on the airline’s shares. Lufthansa titles are slightly in the red.
Biontech: As long as the corona pandemic persists, vaccine manufacturers are doing good business. The US-listed Biontech share rose by around one percent on Xetra.
Wacker Chemie: The Munich specialty chemicals group plans to grow vigorously in the Biosolutions division this decade with the help of acquisitions. In 2030, the division is expected to bring in one billion euros in sales, four times as much as before. The operating return should rise to 25 percent from the last 15 percent, said Wacker CEO Christian Hartel of the “FAZ”. The share is 0.5 percent up.
Encavis: The Hamburg wind and solar park operator is completely separating from three wind farms in Austria. The regional supplier Wien Energie, which already a year ago had a 49 percent stake in the “Pongratzer Kogel” and “Herrenstein” wind farms in Styria and “Zagersdorf” in Burgenland, will now also take over the remaining 51 percent, said Encavis. Encavis titles are down 0.3 percent.
Here you go to the page with the Dax course, here you can find the current tops & flops in the Dax.