In the morning, new inflation forecasts had already caused losses. The Ifo Institute expects inflation in Germany to be between 5.1 and 6.1 percent in 2022. That would be the highest rate since 1982. Statements by Russian President Vladimir Putin, according to which “enemy states” should pay for natural gas in rubles in future, also weighed on the mood.
The Dax was almost unchanged in early trading on Thursday at 14,280 points. Investors are paying particular attention to the deliberations on new aid for Ukraine, which will be held by NATO, the G7 and the EU on Thursday. It should also go to further measures against Russia.
Dax newcomer Daimler Truck is also presenting its annual figures for the first time. The commercial vehicle manufacturer is to become more profitable as an independent company. What is important today:
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1 – Markets in the United States
After the recent price gains, some US investors cash in on Wednesday. In addition, the rising oil price is depressing the mood on Wall Street, said Sam Stovall, chief investment strategist at research house CFRA. The US standard value index Dow Jones closed 1.3 percent lower at 34,358 points. The tech-heavy Nasdaq fell 1.3 percent to 13,922 points. The broad S&P 500 lost 1.2 percent to 4456 points.
In addition to the Ukraine war, the guesswork about the pace of the expected US interest rate hikes dominated the New York stock market.
2 – Trade in Asia
Asian stocks fell on Thursday due to recent developments in the Ukraine war and the rise in oil prices. The currency markets calmed down. However, the Japanese yen continued to suffer heavy losses.
It hit a six-year low of 121.41 on Wednesday as rising US yields and a deteriorating trade balance drew money out of Japan. The Tokyo stock exchange was initially weaker on Thursday. The Nikkei index, which comprises 225 values, was 1.1 percent lower at 27,728 points. The broader Topix index fell 1 percent to 1,959 points.
The Shanghai stock exchange was down 0.6 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.8 percent.
3 – NATO, EU and G7 discuss Ukraine war in Brussels
Three summits are taking place this Thursday in Brussels to discuss Russia’s war of aggression against Ukraine. The program includes a special NATO summit as well as summits of the European Union and the seven leading democratic economic powers (G7). Among other things, the top-level meetings will deal with further support for Ukraine and new measures against Russia. US President Joe Biden is also traveling to Brussels to attend the three summits. It is Biden’s third trip to Europe since taking office in January 2021.
According to the White House, further sanctions against Russia are to be announced in Brussels. The Ukrainian head of state, Volodymyr Zelenskiy, is to be connected from Kyiv at the NATO summit. A solidarity fund for Ukraine is expected to be decided at the EU summit in order to rebuild the country after the end of the war. Chancellor Olaf Scholz (SPD) had invited to the G7 summit meeting. Germany currently chairs the Group of Seven. Other members are the USA, France, Great Britain, Italy, Canada and Japan.
US stock market expert Koch: “News vacuum until the reporting season could end the recovery course”
Another topic is likely to be humanitarian aid for war refugees from Ukraine. According to the UN refugee agency, around 3.6 million people have left Ukraine since the war began. No other country has taken in as many Ukraine refugees as neighboring Poland.
Biden will continue to Warsaw on Friday. The US is also expected to give its European allies more energy support. The goal is to “improve Europe’s energy security and reduce Europe’s dependence on Russian gas,” said Biden’s national security adviser, Jake Sullivan.
4 – EU agreement on digital law in sight
Digital legislation in Europe could take a big step forward this Thursday. It is considered likely that negotiators from the EU states and the European Parliament will agree on a law on digital markets (Digital Markets Act, DMA).
The DMA aims to limit the market power of tech giants like Facebook, Google and Amazon. For companies, this should mean strict requirements, fairer competition for their competitors and more freedom of choice for consumers when it comes to online offers. The hearing begins at 3 p.m.
The DMA is part of a large digital package presented by the EU Commission in December 2020. The second part is the Digital Services Act (DSA), which Parliament and EU countries are still negotiating. The DSA deals with social aspects such as hate speech or counterfeit products.
5 – Daimler Truck takes stock
The truck and bus manufacturer Daimler Truck has been on its own two feet since December and will be presenting its annual figures for the first time on Thursday (9 a.m.). The commercial vehicle manufacturer has been listed in the leading German index Dax on the Frankfurt Stock Exchange since this week and wants to become more profitable as an independent company. CEO Martin Daum and CFO Jochen Goetz want to speak at the online conference.
Daimler Truck sold more vehicles in the past year. With 455,000 trucks and buses worldwide, the company sold around a fifth more than in the previous year. However, the lack of chips hit the group hard in the office.
From its own point of view, the manufacturer with more than 100,000 employees is the world’s largest manufacturer of trucks and buses. At the end of last year, he was spun off from what was then the Daimler Group. The prestigious business with passenger cars was bundled in the Mercedes-Benz Group. Due to the war in Ukraine, Daimler Truck had suspended all business activities in Russia for the time being.
6 – Agricultural trader BayWa presents figures
Russia has stopped grain and fertilizer exports. Some are therefore concerned about the global food supply. Therefore, not only the numbers should be the focus of the annual balance sheet of the agricultural trader Baywa. The group could give an outlook on what the shortage means for its own business, but also for security of supply in Europe.
Company appointments on March 24th
- 1:30 am, Japan: Jibun Bank PMI Services and Manufacturing 03/22 (1st release)
- 8:00 a.m., Europe: Acea, new commercial vehicle registrations 02/22
- 8:45 a.m., France: Business climate 03/22
- 8:45 a.m., France: Producer Confidence 03/22
- 9:15 am, France: PMI Services and Manufacturing 03/22 (1st release)
- 9:30 a.m., Germany: PMI services and manufacturing 03/22 (1st publication)
- 9:30 a.m., Switzerland: SNB, interest rate decision
- 10:00 Norway: Norges interest rate decision
- 10:00 am, Europe: PMI Services and Manufacturing 03/22 (1st release)
- 10:30 am UK: Services and Manufacturing PMI 03/22 (1st release)
- 1:30 p.m., US: Current Account Q4/21
- 1:30 p.m., US: Initial Jobless Claims (Week)
- 1:30 p.m., USA: Durable Goods Orders 02/22 (preliminary)
- 2:45 p.m. USA: Services and Manufacturing PMI 03/22 (1st release)
Other dates on March 24th
- 9:00 a.m., Germany: BGH negotiates in the VW diesel scandal on the statute of limitations for claims for damages, Karlsruhe
- 10:00 a.m., Europe: Special NATO summit on the Ukraine war
- Germany: Conference of Finance Ministers (FMK)
- Belgium: Summit of EU Heads of State and Government, Brussels
With agency material