Dusseldorf The developments in Eastern Europe dominate the stock market. During the night Russia attacked Ukraine – reports speak of several explosions in different cities. Ukrainian President Volodymyr Zelensky has declared a state of war across the country.
According to the indications on over-the-counter trading platforms, the leading index should start on Thursday at just under 14,050 points – and thus around three percent in the red with a loss of 425 points. The reports from the Ukraine that a war has started and the associated effects are likely to determine trading today.
The nervousness of investors can be seen from the strong price fluctuations. The German share index (Dax) was again unable to maintain its gains on Wednesday and closed 0.4 percent down at 14,631 points. The Dax failed in its attempt to break through the important mark of 14,800 points, which, according to technical analysis, determines the medium-term trend.
Not only the Dax, but also the US stock market index S&P 500 has lost more than ten percent since the record high at the beginning of January. The escalation of the Ukraine crisis by Russia is causing prices for raw materials and energy to skyrocket. Together with the effects of sanctions, this does not bode well for the economy – and thus for further development on the stock markets.
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In addition to the West’s confrontation with Russia, the usual events on the stock exchanges continue, i.e. the accounting season is in full swing. On Thursday, the numbers of the domestic heavyweights Deutsche Telekom and Mercedes Benz will be of particular interest to investors.
1 – Markets in the United States
Worries about a Russian invasion of Ukraine weighed on US stock markets until the close on Wednesday. While the extent of the West’s sanctions against Russia initially remained manageable, investors interpreted the latest reports from Kiev as a harbinger of an imminent military escalation.
The US indices gave back initial price gains. The Dow Jones index of standard values closed just above its daily low, 1.4 percent weaker at 33,131 points. The tech-heavy Nasdaq fell 2.6 percent to 13,037 jobs. The broad S&P 500 lost 1.8 percent to 4225 points.
The rally on the commodity exchanges continued, however. Traders anticipate restricted supplies as conflict escalates, pushing prices up again. The price of Brent crude oil from the North Sea was 0.4 percent higher at $97.18 per barrel. Gold, often used as a hedge, remained in demand. The precious metal rose 0.5 percent to $1,907 a troy ounce. Palladium also rose more than 5 percent, while silver and platinum rose up to 1.8 percent.
2 – Trade in Asia
Markets in Asia continued their sell-off on Thursday amid rising war fears in Ukraine. “A shortage of commodities and the need for the risk premium on equities to rise sharply because of geopolitical risks could mean that inflation will remain elevated for longer, threatening the rate hike cycle will have to steepen,” said Tapas Strickland, economics director at the National Australia Bank.
The Nikkei index, which comprises 225 values, was 1.1 percent lower at 26,161 points. The broader Topix index fell 0.7 percent to 1868 points. The Shanghai stock exchange was down 0.4 percent. The index of the most important companies in Shanghai and Shenzhen lost 0.6 percent.
3 – Deutsche Telekom relies on fiber optics and 5G
Against the background of the accelerated fiber optic expansion, Telekom boss Tim Höttges presented the annual balance sheet of the Bonn-based group for 2021 on Thursday. By the end of 2024, the company wants to lay fiber optics in ten million households in Germany, currently there are a good three million. Höttges is likely to confirm the already known expansion targets at an online press conference. With the fast fixed-line Internet, the group wants to secure its market position in the long term.
In addition to the fixed-network Internet, at the press conference on Thursday, Group CEO Höttges should also address the expansion of mobile communications in the 5G radio standard and dare a look across the Atlantic – at the American earnings pearl of the group, the mobile communications provider T-Mobile US.
4 – Mercedes Benz Group builds on luxury
Around three months after the spin-off of the truck business, CEO Ola Källenius will announce the business figures for Mercedes-Benz on Thursday. The business with cars and delivery vans of the former Daimler group is bundled in the new Mercedes-Benz Group.
At the online press conference, Källenius is likely to report on strong results from the operating business in the past year. The manager wants to profile Mercedes as a luxury brand and relies on the motto “class instead of mass.”
According to initial information, the group increased its earnings before interest and taxes (EBIT) adjusted for special effects to 14 billion euros – regardless of the effects of the chip crisis. The former Daimler division Mercedes-Benz Cars & Vans achieved 6.8 billion euros in the year before last. Mercedes-Benz sales fell by five percent to around 2.05 million cars in 2021, mainly because of the chip crisis.
5 – Aareal Bank can look back on a turbulent year
What’s next for Aareal Bank after the failed takeover by financial investors? The shareholders of the Wiesbaden-based real estate financier are not the only ones who expect answers to this question from CEO Jochen Klösges, who has only been in office since mid-September. This Thursday, the institute listed in the SDax will present its balance sheet for the past year.
The attempt by financial investors Advent and Centerbridge to secure at least 60 percent of Aareal Bank’s shares failed in early February. The Board of Management and the Supervisory Board had recommended that the shareholders accept the bid.
After the failed takeover, Klösges assured: “We will now push ahead with the implementation of our successful strategy on our own.” The management wants to concentrate even more on growth in real estate financing.
6 – Wintershall Dea
The gas and oil company Wintershall Dea will present its figures for the fourth quarter of 2021 and for the past year as a whole on Thursday. CEO Mario Mehren and CFO Paul Smith are likely to be confronted with questions about participation in the Nord Stream 2 Baltic Sea pipeline. After the federal government put the project on hold because of the Russian escalation of the Ukraine crisis, the USA are now imposing sanctions on the operating company.
Wintershall Dea and the European companies Engie, OMV, Shell and Uniper have each invested around ten percent or 950 million euros in the pipeline. If it doesn’t go live, that money, and the associated returns for companies, may be lost.
Wintershall Dea, based in Kassel and Hamburg, is considered the most important German partner of the Russian state-owned company Gazprom. The companies jointly produce natural gas in Russia.
Company appointments on February 24th
- 07:00 Germany: Knorr-Bremse, annual figures (9.00 Pk online)
- 7:00 a.m. Germany: Aareal Bank, annual figures and strategic plan, (9:00 p.m. Pk online)
- 7:00 a.m. Germany: Deutsche Telekom, annual figures (10:00 a.m. Online-Pk)
- 07:00 Germany: Adva, year numbers
- 7:00 a.m. Germany: HeidelbergCement, annual figures (detailed) (10:00 a.m. online balance sheet, 2:00 p.m. analyst call)
- 07:00 Germany: clock, year numbers
- 07:00 Belgium: Anheuser-Busch InBev, annual figures
- 07:00 Belgium: UCB, year numbers
- 07:00 France: Axa, annual figures
- 07:00 France: Saffron, dates
- 7:30 a.m. Germany: Mercedes-Benz Group, annual figures (detailed) (9:00 a.m. annual pk online, 10:15 a.m. analyst call, 11:30 a.m. press call)
- 07:30 Germany: Befesa, dates
- 07:30 Germany: Aixtron, annual figures
- 7:30 a.m. Germany: Dürr AG, annual figures (10:00 a.m. online Pk, 3:00 p.m. analyst call)
- 07:30 Germany: Krones, annual figures
- 07:30 Spain: Telefonica, annual figures
- 07:30 France: Scor, annual figures
- 07:30 France: Bouygues, annual figures
- 07:30 France: Accor, annual figures
- 07:30 Germany: Fielmann, provisional annual figures
- 08:00 Germany: Wintershall Dea, annual figures (12:00 h annual Pk)
- 08:00 UK: BAE Systems, year figures
- 08:00 Great Britain: Centrica, dates
- 08:00 Great Britain: Anglo American, years
- 08:00 UK: Lloyds Banking Group, annual figures
- 08:00 Great Britain: Rolls-Royce, annual figures
- 08:00 Germany: New Work, annual figures
- 10:00 Germany: Siemens Energy, Annual General Meeting (online)
- 11:00 Germany: Frosta, annual Pk (online)
- 11:00 Germany: Rolls-Royce Power Systems division, annual Pk (online)
- 12:20 China: Alibaba, Q3 figures
- 17:50 France: Saint-Gobain, annual figures
- 18:00 France: Vallourec, annual figures
- 22:00 US: Coinbase Global Q4 numbers
- Germany: Freenet, probably provisional annual figures
- Switzerland: Adecco, dates
- France: Ferrovial, dates
- US: Moderna, Q4 numbers
- US: Intuit, Q4 figures
- US: Dell Q4 numbers
Economic dates on February 24th
- 08:00 Germany: Sales development in the commercial economy (experimental early indicator) 01/22
- 08:00 Germany: Foreign trade in passenger cars and sales in the automotive industry, year 2021
- 08:00 Germany: Federal Statistical Office on German-Russian relations, including foreign trade and foreign-controlled companies, years 1992 – 2021
- 08:00 Germany: Cultivation and harvesting of vegetables in 2021
- 08:00 Euro zone: Acea, new commercial vehicle registrations 01/22
- 08:45 France: Consumer Confidence 02/22
- 10:00 Austria: PMI Manufacturing 02/22
- 14:30 USA: CFNA Index 01/22
- 14:30 US: Initial Jobless Claims (Week)
- 14:30 US: BIP Q4/21 (2nd release)
- 14:30 USA: Private consumption Q4/21 (2nd release)
- 16:00 USA: New Home Sales 01/22
- 17:00 USA: EIA Oil Report (Week)
Other dates on February 24th
- Further developments in the conflict between Russia and Ukraine – special EU summit in Brussels
- + 11.00 Berlin: Special session of the Defense Committee of the Bundestag with a questioning of Defense Minister Christine Lambrecht
- + 3:00 p.m. Virtual G7 summit: Ukraine crisis in focus: Headed by Chancellor Scholz, the heads of state and government of the leading democratic economic powers discuss, among other things, the Ukraine crisis.
- + 16.30 Pk Chancellor Scholz in Berlin following his participation in the G7 Leaders session
- + 20.00 EU special summit in Brussels
- + Pakistani Prime Minister Imran Khan is visiting Moscow and is expected to meet President Putin as well
- Belgium: Meeting of the EU Council of Ministers for Competitiveness, Brussels
- 09:00 Germany: Federal Court of Justice hears on the liability of Internet platforms for copyright infringement, Karlsruhe
- 09:30 Luxembourg: ECJ opinion on claims for damages due to cartel-related excessive prices, Luxembourg
- 09:30 Luxembourg: ECJ ruling on flight delays for connections with a stopover in the EU, Luxembourg
- USA: Conservative CPAC Conference with Ex-US President Trump, Orlando
With agency material.