Dusseldorf First the weak numbers of the Facebook group Meta, then the speech by ECB President Christine Lagarde: Both factors weighed heavily on the Dax in Thursday trading. The stock market barometer ultimately closed 1.57 percent lower at 15,368 points. The index is again listed well below the 200-day line, which is important for many investors and is at 15,614 digits.
In view of the “current uncertainty”, a flexible monetary policy is more important than ever, said Lagarde – this was taken on the market as a concession that one is at least thinking about raising interest rates. As a result, the Dax slipped another 100 points.
In return, the yields on Bunds rose significantly. The value of a ten-year federal bond was up 0.141 percent in the evening from 0.054 percent previously. Before Lagarde’s remarks, two-year paper yielded minus 0.439 percent, later minus 0.341 percent – a new six-year high. The euro also recorded its strongest rise against the dollar in two years.
However, a decline in the stock market like on Thursday should not surprise investors: the Dax recently staged a small rally of around 800 points within a few trading days. Such breaks are common.
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The way towards 16,000 points should be difficult for the Dax. Because the correction trend since the beginning of the year is still intact. This falling trend line connects the respective high points since the yearly high of 16,285 points.
The meta numbers were the first major disappointment of the reporting season. So far, the annual reports of the tech giants have been the big mood lifter on the floor.
A mix of setbacks sent Meta stock down more than 25 percent on Wall Street. The paper also fell by a quarter on the German stock market. Mathematically, Meta lost 240 billion dollars in market value within a few minutes. That’s more than Deutsche Telekom and SAP are worth together on the stock markets.
In response, stocks of companies whose businesses are internet-based came under pressure on the German market: Losses by Zalando, Delivery Hero, Hellofresh, Auto1 and Shop Apotheke ranged from four to ten percent. The losses kept getting bigger until the close of trading.
Group of investment professionals successfully bet on short-term trends
Thursday trading has also shown that the Dax has been turbulent since the beginning of the year. This can be read from a total range of more than 1300 points, the equivalent of a little more than eight percent.
A small group of investment professionals seem to be benefiting well from this turbulence. This is the opinion of the behavioral economist Joachim Goldberg after evaluating the weekly survey by the Frankfurt Stock Exchange. He estimates the group of active traders to be around ten percent of those surveyed. They rely more on short-term transactions than on medium-term strategies.
This group bet on falling prices at the beginning of the year when the Dax was near the 16,000 point mark. Then, last week, the switch to the long side took place. This group of investors was rewarded again because the Dax climbed by almost 800 points at its peak.
“We will have a very rough stock market year with many fluctuations”
Now the reversal follows. 15 percent of institutional investors have sold shares, 12 percent have gone short. Goldberg suspects that the short sellers want to pocket their profits between 15,200 and 15,250 points. That should provide some support in this area.
On the upside, however, this sale has cleared some blockages. Because some of the sellers have not yet invested. If prices continue to rise, some “shorties” would also have to liquidate their positions quickly so that the losses don’t get out of hand.
Look at the individual values
Team viewer: After an increase of 16 percent the day before, profit-taking was the order of the day. The Teamviewer share temporarily lost more than four percent to 14.44 euros. At the end of trading, the minus was three percent, the share at 15.05 euros. A cautious analyst comment is also a burden: Deutsche Bank has increased its price target for the title from 15 to 16 euros after yesterday’s figures, but left the assessment on “Hold”.
Telecom: Titles of the Bonn group increased in price by 2.6 percent. They benefited from the strong business figures of the US mobile communications subsidiary T-Mobile, which at times gained almost twelve percent on Wall Street. In addition, the outlook for operating profit and customer growth is better than expected, praised the analysts at the bank JPMorgan. T-Mobile is therefore their favorite in the industry.
Infineon: The chip company increases the annual forecast and is becoming more and more profitable. Infineon is sticking to the investments of EUR 2.4 billion planned for the current fiscal year. The focus is on expanding the factories “in order to be able to continue to serve the expected growth in demand from our customers in the medium term”. All of this was also expected after the outstanding figures of the competitors. However, the paper came under pressure due to profit-taking. With a minus of five percent, Infineon was one of the weakest Dax values.
Siemens Healthineers: A quarterly result above expectations and a higher forecast temporarily pushed the paper to the top of the Dax. The business with rapid corona tests inspires the Erlangen-based medical technology group. During the course of the day, the paper turned negative and closed 2.4 percent lower.
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