Yesterday’s trading was a so-called “pullback”, which can often be observed. As a sort of confirmation, the Dax fell back to the 13,500 point mark and then continued to rise again.
Today’s trading day was characterized by stabilization tendencies: the yield on government bonds fell again significantly, and the price of gold also rose this Friday after a week of heavy losses.
Even the volatile cryptocurrency Bitcoin climbed back above the $30,000 mark after a dramatic decline.
With the closing price above the 14,000 mark, the German stock exchange barometer stopped its five-week losing streak. Because the index ends the session above the closing level of Friday last week, which was 13,674 points.
On a weekly basis, the situation on the US markets looks different. The US indices will probably not end their loss streak in view of the previous week’s losses. According to Thomas Altmann from the investment house QC Partners, the “Nasdaq 100 and the S&P 500 will end the sixth week in a row in the red”.
An unusual situation. “There have only been three longer negative series in the 95-year history of the S&P 500, most recently in 2001,” explains the capital market expert. Experienced stockbrokers remember: In 2001 the technology bubble burst on stock exchanges worldwide.
Dax downtrend remains intact
Even if investors had prepared for a quiet, maybe even friendly day of trading on the German stock market: the downward trend in the Dax remains intact. Only sustainable prices above 14,078 points would end this trend, which has prevailed since the annual high of 16,285 points on January 5, 2022.
There are also other important hurdles to be found in this area. On the one hand, there is the 38-day line at 14,145 points, which shows the short-term trend. The 50-day line, which signals the medium-term trend, is also not far away at currently 14,031 points. If the Dax exceeds these marks in the coming trading days, the initial situation for the German stock market would relax significantly, according to technical analysis.
The above-average trading volume is currently striking. With 110 million traded pieces on Thursday and 107 million papers that changed hands on Wednesday, the highest values of the past four weeks were reached.
For the technical analyst Martin Utschneider from the private bank Donner & Reuschel, this fact rather underpins the downward trend in the chart. The appropriate rule for this is: “The volume goes with the trend – the trend goes with the volume.” And the last two trading days ended in the red.
Technical reaction in the bond market
Prices on the bond market rose even faster than share prices. Conversely, government bond yields fell significantly. At the beginning of the week, the yield on a ten-year government bond was 3.2 percent, this Friday this figure was 3.22 percent.
This development was similar for federal bonds with the same term. The value fell from 1.18 percent to 0.941 percent away. This is more than just stabilization.
For the capital market expert Altmann, there are technical reasons for this, which can be seen in the Bund Future. This futures contract relates to a fictitious ten-year federal bond with a coupon of six percent and thus enables trading on bonds. The price of the futures runs inversely to the interest rate development.
The Bund Future rose above its 30-day moving average for the first time since February. “For technically oriented investors, this is an important and positive signal,” explains Altmann. Three months ago, the futures contract then climbed further up, and the yields on Bunds continued to slide accordingly.
Bitcoin back above $30.00
Investors stocked up on bitcoin again after the recent sell-off. The cyber currency increased in price by almost five percent to $30,501. Yesterday, Thursday, there were courses below $ 27,000. In the past, however, all counter-movements did not last long and were regularly sold off again.
>> Read about this: The Terra crash calls many things into question – especially for the dazzling decentralized world of finance
Punished SDax values back on course for recovery
On the stock exchange, there were major recovery movements for stocks from the SDax that had recently been heavily penalized. Those of the real estate company Instone recovered by 19.1 percent after a slump the day before because annual targets were withdrawn.
With a recovery of ten percent, the titles of the shop pharmacy have compensated for a price slide on Tuesday. Here, the introduction of the e-prescription remains the controversial issue.
In addition, shares in biofuel manufacturer Verbio continued their recovery with a price jump of 8.6 percent, although Federal Environment Minister Steffi Lemke intends to make a proposal for a change in the law in the near future to limit the use of biofuel from cultivated plants.
With SMA, another SDax value rose by 13 percent after poor price development because of a buy recommendation. Something similar also inspired Evotec in the MDax: After a roller coaster ride over the course of the week, the price recovered here at the end of the week 10.8 Percent.
Look at the individual values
Economy: Europe’s largest electronics retail chains Media Markt and Saturn are leaving the consequences of the corona pandemic behind. The parent company of the two chains, Ceconomy, recorded a significant increase in sales in the second quarter of the 2021/22 financial year thanks to a recovery in the branch business. The Düsseldorf holding company confirmed its outlook for the current year. The stock rose 3.3 percent.
The share price has almost halved since June of last year, and the Ceconomy paper has been down more than 20 percent since the beginning of the year.
Vitesco: The auto parts supplier is making good progress collecting orders for its electric drive division. However, for the current second quarter, the company is assuming an even more difficult environment than at the beginning of the year. Nevertheless, the stock climbed 7.6 percent.
Freenet: After a good start to the year, the shares of the mobile phone provider are on investors’ buy lists. The papers listed in the MDax increased by 1.6 percent. The company from Büdelsdorf in northern Germany scored with improved profitability.
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