Dusseldorf First the weak numbers of the Facebook group Meta weighed down and then the press conference by ECB President Christine Lagarde increased the minus. This is how today’s trading day can be summarized.
Lagarde’s statement that a flexible monetary policy is more important than ever in view of the “current uncertainty” is seen on the market as a concession that one is at least considering raising interest rates. Given this possibility, the Dax slipped a further 100 points and is currently at 15,442 points, a drop of 1.1 percent. The index is again below the 200-day line, which is important for many investors and is at 15,614 points.
In return, the yields on Bunds rose significantly during Lagarde’s appearance. The value of a ten-year federal bond is suddenly plus 0.12 percent from the previous 0.054 percent. For a two-year, the previous minus 0.439 is now minus 0.360 percent, a new five-year high. The euro also rose by 0.8 percent to $ 1.138.
However, such a decline in the stock market should not surprise investors: with yesterday’s daily high of 15,736 points, the leading index had staged a small rally of around 800 points within a few trading days. Such breaks are common. The Frankfurt benchmark ended yesterday’s trading day practically unchanged at 15,613 points.
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In any case, the path 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 Facebook numbers were the first big disappointment of the reporting season. So far, the annual reports of the tech giants have been the big mood lifter on the floor. But the number of the Facebook parent company Meta has become a mood killer.
A mix of setbacks led to a post-hours slump in Meta shares of more than 20 percent on the US stock exchanges. The paper is also down 20.2 percent on the German stock market. Arithmetically, Facebook lost around 200 billion dollars in market value within a few minutes. That’s more than Deutsche Telekom and Daimler 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 two to four percent.
Group of investment professionals successfully bet on short-term trends
The Dax has been turbulent since the beginning of the year, which can be read from a 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 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.
“We will have a very rough stock market year with many fluctuations”
This group bet on falling prices earlier in the year when the Dax was trading near the 16,000 mark and switched back to the long side last week. These traders were rewarded again because the Dax climbed almost 800 points at its peak.
The current survey result shows: Now the game is going the other way around. 15 percent of institutional investors have sold shares, 12 percent have gone short. Goldberg suspects that the short sellers want to recoup their profits in the range between 15,200 and 15,250 points. That provides some support in that 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 is the order of the day. Teamviewer shares are down 4.5 percent and are trading at EUR 14.80. 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”.
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. Profit-taking now ensures that the share falls by more than four percent and leads the Dax list of losers.
Siemens Healthineers: A quarterly result above expectations and a higher forecast push the paper at times to the top of the Dax. The shares climb at the top by 3.4 percent to 61.44 euros. In the meantime, however, the plus is only 0.3 percent. The business with rapid corona tests inspires the Erlangen-based medical technology group.
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