Dusseldorf Russia’s attack on Ukraine is still the dominant topic in the world, including on the stock exchanges. Nevertheless, investors on the German stock market are relatively optimistic, and many are apparently counting on progress in the peace negotiations. The Dax jumped the hurdle of 14,000 points several times on Monday. Later, the profits crumbled off only a little.
The German leading index finally ended the day with a plus of 2.2 percent, it ended up at 13,929 points. Today, Tuesday, the course barometer is listed on off-exchange trading platforms around half a percent in the red. In the previous week, the Dax had temporarily dropped below the 12,500 point mark as a result of the war.
The fourth round of negotiations between Moscow and Ukraine, which took place via video link for the first time, has not yielded any results so far. It should continue on Tuesday. Above all, the war has also become a global energy problem.
Investors should therefore be looking forward to what the Ifo Institute has to say about the security of the electricity market in Germany. But also groups like RWE, Volkswagen and Fraport, which present their annual figures, are an indicator of the current level of crisis in the German economy.
Top jobs of the day
Find the best jobs now and
be notified by email.
1 – Markets in the United States
Investors on Wall Street remain cautious despite efforts to find a diplomatic solution to the Ukraine war. The Dow Jones index of standard values closed unchanged at 32,945 points on Monday. The tech-heavy Nasdaq fell two percent to 12,581 jobs. The broad S&P 500 lost 0.7 percent to 4173 points. Hopes of progress in talks between Russia and Ukraine prevented even larger losses.
2 – Trade in Asia
Geopolitical concerns weighed on Asian stock markets on Tuesday. Hong Kong’s Hang Seng index lost more than three percent in the course of trading, and China’s CSI 300 lost around two percent. The Japanese Nikkei, on the other hand, remained slightly positive, and the Topix index gained 0.9 percent.
3 – RWE confirms forecast
After growth in 2021, the energy group RWE has confirmed its forecast for 2022. RWE expects earnings of between 3.6 and 4.0 billion euros (adjusted Ebitda) and adjusted net earnings of between 1.3 and 1.7 billion euros at group level for the current year, the group announced on Tuesday.
Last year, the largest German electricity producer increased its adjusted Ebitda to 3.65 billion euros after previously 3.29 billion euros thanks to growth in the trading business and in the operation of coal and gas-fired power plants. The adjusted surplus climbed to 1.57 billion euros after 1.26 billion euros a year ago. As announced, shareholders are to receive a dividend of 90 cents per share for 2021 after the last 85 cents per share. For 2022, the utility wants to keep the dividend stable.
4 – VW is stable
Volkswagen shareholders, on the other hand, can look at the carmaker’s annual balance sheet presented today with more reassurance. The annual report and outlook of the largest European automobile manufacturer had given the sector, which had recently been badly hit by the Ukraine war, a boost throughout Europe.
VW itself rose by around four percent in the Dax yesterday. However, the group is concerned about possible expropriations in Russia. In addition, three plants in China are currently having to pause due to a corona outbreak.
5 – Fraport is recovering from the corona crisis
The airport operator Fraport was in the black last year thanks to savings, staff cuts and a recovery in air traffic from the slump in the corona pandemic. The group result was positive in 2021 at almost 92 million euros after a loss of 690 million in the previous year, as Fraport announced on Tuesday.
The turnover of the MDax group increased by 28 percent to 2.1 billion euros. The operator of the largest German airport and a number of airports abroad has adapted to the still significantly lower air traffic through strict cost management and staff reductions, explained Fraport boss Stefan Schulte. “Fraport is now leaner and more efficient than it was before the outbreak of the corona pandemic.” After cutting 4,300 jobs, up to 1,000 employees in the operational area are to be hired again in the current year.
6 – Wacker Chemie presents annual figures
Investors should be satisfied with the Munich specialty chemicals group. Wacker Chemie more than doubled its operating profit last year, significantly exceeding expectations. The company announced in January that earnings before interest, taxes, depreciation and amortization (Ebitda) for 2021 would be around EUR 1.5 billion (2020: EUR 666 million).
At the end of October, the group had promised Ebitda between 1.2 and 1.4 billion euros, analysts had recently expected an average of 1.37 billion. Sales also increased more than expected. Compared to the Corona year 2020, it jumped by almost a third to around 6.2 (4.7) billion euros; Wacker had recently expected six billion. Above all, the high demand for silicon for solar cells and the chip industry spurred on Wacker in the past year.
7 – Ifo Institute for security of electricity supply in Germany
Energy expert Dominik Möst from the Technical University of Dresden is presenting his analysis of the German electricity market today, which is also suffering from the Ukraine war. The EU Commission recently announced plans to cap electricity prices in Europe.
The considerations are part of a package of measures with which the Commission intends to cushion the effects of the energy crisis triggered by the Russian war of aggression and to lead Europe out of its dependence on Russian raw material imports in the medium term. Just yesterday, Federal Economics Minister Robert Habeck warned of the dramatic economic impact that Germany could expect if it immediately stopped using Russian oil and gas. According to Habeck, a five percent economic slump – if that were to happen – is more than the Covid pandemic.
8 – China’s Bureau of Statistics reports economic developments in January and February
The figures China will release today will not include one important event: the spread of the highly contagious omicron variant in the country. There were 1,337 new cases in mainland China as of Sunday, according to the Chinese National Health Commission. The authorities in mainland China have already reported more symptomatic Covid-19 cases this year than in all of 2021.
Corona outbreaks in major cities are increasingly paralyzing economic life. In Changchun, Toyota and Volkswagen suspended production at their joint ventures with China’s FAW Group. At Volkswagen, the lines should stand still until Wednesday. Experts fear serious consequences for the Chinese economy and effects on the already tense international supply chains. The corona situation in China has deteriorated at an “alarming” pace over the past week.
Company appointments on March 15th
- 6:30 a.m., Switzerland: Tecan, annual figures
- 7:00 a.m., Germany: TAG Immobilien, annual figures
- 7:00 a.m., Germany: Wacker Chemie, annual figures (detailed)
- 7:00 a.m., Germany: RWE, annual figures (detailed) (10:00 a.m. balance sheet Pk, 1:00 p.m. analyst call)
- 07:00 a.m., Germany: Fraport, annual figures (10:30 a.m. Balance Pk online)
- 7:30 a.m., Germany: Volkswagen Group, annual figures (detailed) (9:00 a.m. online Pk, 1:00 p.m. analyst call)
- 7:30 a.m., Germany: Pharma SGP, annual figures (detailed)
- 07:30, Finland: Multitude, year numbers
- 08:00, Sweden: Hennes & Mauritz, Q1 sales
- 8:15 a.m., Germany: Traton annual figures (detailed)
- 10:00 a.m., Denmark: AP Moller-Maersk, AGM
- 10:30 a.m., Switzerland: Roche, Annual General Meeting
- 11:00 a.m., Germany: NRW-Bank, annual Pk (online)
- Italy: Assicurazioni Generali, dates
Economic dates on March 15th
- 3:00 a.m., China: Industrial production 02/22
- 03:00, China: Retail Sales 02/22
- 08:00, UK: Unemployment figures 02/22
- 08:00 a.m., Germany: Destatis: Effects of sanctions against Russia on foreign trade, evaluation based on results from 2021 and January 2022
- 8:00 a.m., Germany: Destatis: On World Consumer Day (03/15/2022): Consumer spending of private households, year 2021
- 08:45, France: Consumer Prices 02/22 (final)
- 10:00 a.m., Poland: Consumer Prices 02/22
- 11:00 a.m., Germany: ZEW Indicator of Economic Sentiment 03/22
- 11:00 a.m., Europe: Industrial Production 01/22
- 1:30 p.m., USA: producer prices 02/22
- 1:30 p.m., USA: Empire State Index 03/22
- 9:30 p.m. USA: API Oil Report (Week)
Other dates on March 15th
- Germany: The Federal Environment Agency (UBA) publishes its full forecast of climate-damaging CO2 emissions for 2021, Dessau-Roßlau/Berlin
- Germany: 23rd Technical Congress of the Association of the Automotive Industry (VDA), including with Federal Minister of Economics Robert Habeck
- 11:00 a.m., Germany: Federal Fiscal Court presents fundamental decisions at annual Pk
- 11:30 a.m., Germany: Armed Forces Commissioner Högl presents the annual report for 2021
- 1:00 p.m., Germany: Presentation of the right-wing extremism action plan, with Federal Minister of the Interior Nancy Faeser, President of the Federal Office for the Protection of the Constitution, Thomas Haldenwang, BKA President Holger Münch and Thomas Krüger, President of the Federal Agency for Civic Education
- 5:30 p.m., Germany: Ifo Institute for Security of Power Supply in Germany, Dresden
- Belgium: Meeting of the EU Council of Ministers for Economy and Finance, Brussels
- Australia: Opec, Oil Market Monthly Report
With agency material.