DAX fights for 14,000: Wall Street is solid


market report

Status: 04/13/2022 16:09

The war, the economy, interest rates – these themes also dominate mid-week stock market activity. In New York, however, stock markets opened slightly higher.

Wall Street opened strong despite two recent successes. The leading Dow Jones index posted a 0.3 percent gain a half hour after the start of trading. Nasdaq technology shares are up about half a percent. Producer prices rose even more sharply than expected in March. The 11.2 percent rise was the strongest price increase since the survey began in 2010.

JPMorgan kicks off US earnings season

Meanwhile, US financial giant JPMorgan has kicked off the US reporting season with sobering numbers. According to the money house, the Ukraine war caused balance sheet charges of about $500 million in the first quarter. Net profit fell 42 percent to about $8.3 billion, according to the largest US bank in New York.

DAX fights for 14,000

Meanwhile, the DAX has successfully countered another drop below the 14,000 mark, but threatens to drop below it again. Tomorrow’s ECB meeting promises more clarity on how monetary policy will react to wild price moves. Until then, many investors are reluctant to invest.

Economists lower economic forecast

There is currently little reason for economic optimism in Germany: all five major economic research institutes have significantly lowered their economic forecast for this year. They now only expect 2.7 percent growth instead of the 4.8 percent forecast in the fall. They estimate that inflation will be 6.1 percent this year. “Apart from the war in Ukraine, the unfavorable course of the pandemic in the past half-winter year is decisive for the review,” according to the institutes. For next year, they expect gross domestic product (GDP) to grow 3.1 percent.

Update economy as of 04/13/2022

Stefan Wolff, Human Resources, tagesschau24 9:05 am, April 13, 2022

Euro slightly under pressure

The common European currency is trading at $1.0820 in the early afternoon. In this way, players are also reacting to the interest rate differential between the US and the Eurozone, which is likely to widen further in the near future.

Oil prices continue to rise

Oil prices continue their upward movement. A barrel of Brent from the North Sea currently costs US$106.80. Yesterday, oil prices were also buoyed by the easing of coronavirus measures in the Chinese financial metropolis of Shanghai. In addition to the prospect of renewed demand for crude, supply shortage concerns are also supporting prices in light of the war in Ukraine.

Twitter shareholders sue Elon Musk

Tesla CEO Elon Musk may have broken the law in his rise to become Twitter’s largest shareholder. The lawsuit in New York federal court alleges that Musk violated a statutory deadline to reveal that he had acquired at least a 5 percent stake in Twitter. Instead, he did not disclose his investment until he acquired a more than 9 percent stake. A class action lawsuit is being sought to represent Twitter shareholders who sold shares between March 24 and April 4.

Telekom increases stake in US subsidiary

Deutsche Telekom has further increased its stake in the T-Mobile US subsidiary to 48.4 percent of the capital. The group is acquiring an additional 21.2 million shares of T-Mobile US from SoftBank Group for $2.4 billion. That corresponds to an average price per share of $113. To finance the purchase, Telekom is also using part of the approximately four billion euros it received from the sale of T-Mobile Netherlands.

E.ON qualified

After a downgrade by investment house Stifel, E.ON shares have lost as much as three percent. Stifel expert Martin Tessier dropped his buy recommendation and lowered the price target to EUR11.20. There is a lot of uncertainty in E.ON’s sales business and high energy prices continue to weigh on the grid area. Meanwhile, the debt reduction is increasingly dependent on external factors, which means that the increase in dividends is likely to be smaller than it had previously calculated.

Fraport praised based on traffic figures

US investment bank Goldman Sachs left Fraport’s buy recommendation with a price target of 64 euros. European infrastructure stocks belonged to an attractively valued asset class. In March, the airport operator carried 2.94 million passengers at its most important location in Frankfurt. That was 217 percent more than the previous year, but still 47 percent less than before the corona pandemic in March 2019. In the cargo sector, business fell by 13.3 percent to 177 million tons.

K+S raises forecast

The strongest stock on the MDAX is K+S. The high prices of potassium fertilizers make the company more optimistic for the current year. Group boss Burkhard Lohr expects an increase in operating profit (Ebitda) from 2.3 to 2.6 billion euros. There was between €1.6bn and €1.9bn in the plan so far, after just under €1bn last year. The company intends to present a full annual outlook when it presents first-quarter figures on May 11.

Auto1 stock remains under pressure

Shares of online car dealer Auto1 are currently losing more than six percent. With a minus of more than 40 percent, it is one of SDAX’s biggest losers of the current year. JPMorgan analyst Marcus Diebel testified that the company’s first-quarter sales figures were slightly better than expected. Sales in the first quarter rose 30 percent to 169,600 units.

LVMH revels in luxury

After positive analyst reactions to Q1 trading figures, LVMH stock is in demand in the morning. UBS experts also see LVMH’s strong start to the year as a positive sign for other luxury goods groups and brand manufacturers. At the analyst conference, management gave a “confident and calm impression,” according to UBS analyst Zuzanne Pusz. Compared to the same period a year earlier, which was affected by the pandemic, sales in the first quarter rose 29 percent to €18 billion, mainly thanks to the fashion and leather goods business. This was significantly more than analysts expected on average. In comparable terms and adjusted for exchange effects, growth was 23 percent.

hypoporto is doing well

Financial services provider Hypoport started the new year with strong growth. In the first quarter, the volume of transactions on the internal credit platform Europace increased by 26 percent year-on-year. Business volumes also increased in the rest of the divisions by double-digit percentages. Stocks listed on the MDAX are rising slightly.

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