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The shortened last week of the year started with a lot of momentum. Like the stock indices in the United States, the DAX has now also set new all-time highs. There were good reasons for it.
By Robert Minde, tagesschau.de
The leading German DAX index has been waiting for a long time, today the time has finally come. The index beat its old February record by 13,795 points and set a new record at 13,818 points. In doing so, it followed the US markets, which had been rising strongly for weeks. The closing price was 13,790 points, which means that the index gained 1.5 percent. The second-row indices, MDAX and SDAX, also set new records, so the rally was widely supported. It was also the fourth day of consecutive victories.
Much good at the price
One reason for the rally was mostly investor relief that there had been a Brexit deal between the EU and Britain in the last few meters. This will initially prevent Britain from leaving the EU in an unregulated manner, with potentially serious harm to the economies of both trading partners. The 27 EU ambassadors have already agreed, so that the agreement can enter into force on January 1.
Corona vaccines begin
Furthermore, the coronavirus vaccines, which have now started in this country as well, put people in a good mood. Even if there is only a small vaccine available, the stock market sees more and more light at the end of the tunnel. Overcoming the crisis is now firmly anchored in prices, although the situation is likely to remain tense, at least immediately.
“The big problems were solved in the last second, and coming out of the corona pandemic, the economy and society have come a long way with the start of vaccines in Europe,” said online broker analyst Jochen Stanzl CMC Markets.
Delivery Hero haussieren
Among the DAX’s individual actions, the roles of the online food service Delivery Hero stood out in particular. The stock gained more than nine percent and was at the top of the index by a wide margin. At the same time, it also set a new all-time high.
Meanwhile, the Berlin company can take over its competitor Woowa in South Korea, but subject to certain conditions. The South Korean subsidiary Yogiyo must be sold on the instructions of the Cartel Office, which the company’s founder, Niklas Östberg, actually wanted to avoid. However, he spoke of “great news for both our companies and the entire industry.”
Wall Street celebrates the stimulus package
As is well known, investors on Wall Street have long been confident. In particular, the prospect of the government’s $ 900 billion stimulus package recently brought them to the stock market. Today, investors are relieved that President Donald Trump has signed the crown stimulus package that was approved by Congress with a bipartisan majority.
Dow Jones over 30,500 points
As a result, the main US stock indices set new all-time highs and continue their course of recent days. The leading Dow index has so far risen to a peak of 30,525 points, the S&P 500 index marks a new all-time high at 3738 points.
All-time highs are also set on the Nasdaq technology exchange. Tech stocks in particular, which are seen as Corona winners, have repeatedly pushed the US market. European markets cannot keep up. One particularly popular effect of the year-end rally is that institutional investors naturally like to present high prices to their clients in their annual reports at the end of the year. An effect that is repeated over and over again throughout the world.
Mood is clouded by a strong euro
The euro also gained today and had risen to almost $ 1.2250 at its peak. It is currently trading slightly lower at $ 1.2216. This is not good news for the export-oriented German economy, as domestic products are increasingly expensive for dollar residents. Perhaps it is the only imperfection today. The European Central Bank (ECB) set the benchmark rate at 1.2219 (Thursday: 1.2193) dollars.
“A strong euro generally indicates an emerging or stable world economy,” emphasizes market expert Robert Rethfeld of Wellenreiter-Invest. On the other hand, a too strong euro could put pressure on the German export industry.
Commodity markets barely moved
Investors in the oil market took it easy today. Meanwhile, they followed the general buying mood in financial markets, but meanwhile, “black gold” prices are barely moving. The “safe haven” of gold is also not in demand. In exchange for the rise in equity markets, the price of gold has fallen by almost half a percent.
Bitcoin targets the next brand
Meanwhile, the impressive rally of Bitcoin continues in crypto exchanges. The price of the most famous cryptocurrency rose to more than $ 27,000 at the beginning of the week. Over the weekend, Bitcoin hit a record high of $ 28,382. This means that the digital currency has made around $ 20,000 since the beginning of the year. During the first corona wave in the spring, the price had temporarily plunged below $ 4,000.
Brexit deal boosts automakers
After the trade agreement between the EU and Great Britain, the focus on the German stock market is particularly on car manufacturers; they are clearly the beneficiaries of the last minute Brexit deal. BMW, for example, had warned in advance that an exit without a trade deal would cost the company an amount in the triple-digit millions per year. The relief among investors is equally great; Shares of BMW, Daimler and VW are among the DAX’s biggest winners in early trading, but they couldn’t hold their highs.
Volkswagen said the deal between the EU and Britain created planning certainty for the group and its British brand Bentley Motors. This is particularly important for British customers.
BMW increases the number of electric cars
BMW wants to more than double its share of EV sales in the next three years, “from about eight percent this year to about 20 percent in 2023,” said Augsburger Allgemeine CEO Oliver Zipse. “Now we are significantly increasing the number of electric strikes again.” Between 2021 and 2023, BMW will also make a quarter of a million more electric cars than originally planned.
Head of Deutsche Post as course driver
The head of the position, Frank Appel, knows how to change course: “We are confident that we will finish 2020 with a record profit,” Appel told the “Frankfurter Allgemeine Sonntagszeitung”. That boosts Deutsche Post shares. Thanks to the e-commerce boom, the DAX company is one of the big winners of the crown crisis. In the current year, participation was able to gain about 20 percent.
