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Monday, December 28, 2020
“It could hardly be better”
Dax rises to new heights
Investors are pushing the German stock market to new heights shortly before the end of the year. The reason is the prospect of overcoming the economic weakness. Optimism is fed mainly from three sources.
At the beginning of the last trading week of the year, several good news lifted the leading German Dax index to a new high. The agreement on an EU-UK trade deal, the signing of a new US economic stimulus package by President Donald Trump, and the launch of corona vaccines in the EU created a buying mood. “The news and mood in the stock market could hardly be better at the end of a turbulent year in the stock market,” summed up market analyst Jochen Stanz of brokerage CMC Markets.
Shortly after the opening bell, the stock barometer rose to new heights and only stopped at 13,819 points. The German benchmark passed the trading day at this level and ended up closing 1.5 percent stronger at 13,790 points. the MDax it gained 0.8 percent to 30,656 positions. the TecDax increased 0.9 percent to 3,212 points. The leading index of the euro zone Eurostoxx 50 goes up by one percent.
In March, the Dax had settled at 8,255 points. Before long, it was overwhelmed by crown concerns and crashed by more than 40 percent. It had hit a record in February. But recently the mood has fundamentally changed. Investors now have a strong economic rebound. Furthermore, the billions from the central bank continue to flow around the world, money that must be invested somewhere.
On the Dax, almost all stocks hit the mark with a profit. They were undisputed at the top Delivery hero, which earned 10.8 percent. The food-delivery company with no business in Germany received approval for the high-growth joint venture with South Korea’s Woowa, on the condition that Korean subsidiary Yogiyo be sold. German postal service go up 2.6 percent. Here, CEO Frank Appel had promised new record volumes of packages shipped this year and, at the same time, a record profit. Heidelberg printing machines closed a 4.6 percent tighter. Shortly before the end of the year, the company sold a piece of land for an average amount of double digits in million euros. This could strengthen equity, he said on the exchange. Auto stocks posted comparatively meager premiums. In the end they paid alone MTU one that was down 1.3 percent.
In the second row they were classified with Lufthansa and Fraport Two companies particularly affected by the Corona crisis topped the winners. Here, the prospect of a rebound in tourism attracts investors. In addition, the airline cut costs in the Corona crisis much faster than planned, CEO Carsten Spohr told “Welt am Sonntag.” While it was up 5.2 percent for the airline, Fraport was up 2.1 percent.
Feathers left at the bottom among others Aareal Bank. This could be related to the fact that even after the Brussels-London agreement, uncertainties persist for the financial services sector. as well Commerzbank stepped on the place. The bank announced that it would hire another 610 million euros for job cuts, which will weigh on net profits in the last quarter.
Put the TecDax Nordex his ascent continued. For the wind turbine maker, this is another 4.4 percent. In the current year, the price of paper has already risen almost 80 percent.
