The leading German index has already reached several new record highs this year.
(Photo: Bloomberg Creative / Getty Images [M])
Dusseldorf The German stock market continues to improve: The Dax rose in the afternoon by 2.6 percent to 15,774 points, an increase of almost 400 points. Yesterday, Monday, was constructive when the German leading index went out of trading with a plus of 1.4 percent at 15,380 points.
With the current quotation, the Frankfurt benchmark has overcome the trading range of last week, which is 15,540 points on the top and 15,105 points on the bottom.
This could be the basis for a new weekly uptrend defined by rising highs and rising lows. The first point, a new high compared to the previous week, was already reached on Tuesday.
These two brands from the previous week are more relevant than usual because the Dax slipped 660 points on Friday, November 26th, due to the appearance of the Omikron variant in public, and the index was virtually new by investors the following week had to be assessed.
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The prevailing view at the moment is that Omikron will slow down the economy in the short term, but will hardly have any medium-term consequences. And since the future is being traded on the stock exchange, investors are buying shares again.
Thomas Altmann of the investment house QC Partners also believes that a breakout above the 15,540 mark would be a positive signal that could lead to further purchases.
From a technical point of view, the focus is initially on the 200-day line, which is currently quoted at 15,423 points and was already overcome at the start of trading. This average line is mainly taken into account by investors with a long-term perspective. The fact that the leading German index will probably be trading above this level at the end of trading is a positive signal.
In addition, the Dax has already started to close the large gap in the price of November 26th. This was between 15,865 points (lowest level on Thursday, November 25th) and 15,540 points, the highest level on the following Friday. That suggests investors are slowly ticking off the effects of the new variant of the virus.
Technology stocks were among the favorites in the stock market. The European industry index headed for the largest daily gain in a year and a half with a plus of 4.3 percent at times. The sector received additional tailwind from Intel’s plan to float subsidiary Mobileye. According to an insider, the driver assistance system provider could be valued at more than $ 50 billion.
Infineon were among the biggest DAX winners with a price increase of around four percent. Chip system manufacturer Aixtron was at the top of the MDax winners with a price increase of more than five percent.
Interestingly, in the Dax 40, the so-called corona winner papers are among the biggest winners on Friday, although the virus is becoming less important. The share of the grocery delivery service Delivery Hero is at the top of the Dax with a plus of 6.2 percent, followed by the online fashion retailer Zalando with an increase in value of a good five percent.
Look at further individual values
Volkswagen: The shares rise 1.4 percent. The market welcomes the end of the disputes over the person of the CEO Herbert Diess and the fact that he apparently remains in office. However, Diess has to give up power. The disputes had previously caused VW shares to slip over 15 percent in the past three months. Other auto titles such as Daimler and BMW rose during this period.
BASF: Investors cover themselves with the shares after an upgrade. The titles of the chemical company rise by almost two percent. JP Morgan put the share on “overweight” from previously “neutral”.
Merck / Palantir: A planned joint venture between the two companies is encouraging investors to get started. The shares of the pharmaceutical and specialty chemicals group rise 2.2 percent on the German stock exchange and those of the US data analysis firm on Wall Street by a good three percent. The aim of the joint venture is to solve the problems associated with supplying US chip manufacturers with raw materials.
Oil prices are rising again
The decreasing fear of the consequences of the corona variant Omikron allows investors to access crude oil. The Brent variety from the North Sea rose by 2.1 percent to $ 74.58 a barrel after the price rose by almost five percent at the beginning of the week. The fear of renewed restrictions because of the Omikron variant had added to oil prices last week.
Here you go to the page with the Dax course, here you can find the current tops & flops in the Dax.