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Dusseldorf The German stock market is based on the rebound from the previous day: the Dax is up 1.5 percent to 10,822 points in mid-day trade. Yesterday, the index closed trading at 10,660 points, an increase of 3.1 percent.
The auditors found no “incriminating evidence” for the balance-sheet tampering allegations and there were no “substantial findings” that would have required a correction in the 2016-2018 annual financial statements, the company said. However, KPMG was unable to fully assess all of the data in the final report released Tuesday, and thus was unable to remove all allegations of balance sheet tampering.
In response, the share price fell more than 20 percent to around 105 euros, but meanwhile the paper rose again to 115 euros. Turnover is extremely high: around 1 p.m., trading volume was around ten million pieces. Yesterday, just Monday, 3.3 million shares were traded throughout the day.
The price had already dropped to 110 euros before the exchange. The stock briefly fell on Monday afternoon by around twelve percent to 135 euros, but then rebounded again.
That all creates an interesting situation for the Wirecard share. Last Friday, hedge funds announced that they had increased their speculation about falling prices.
This share is now 4.31 percent of all freely tradable shares, that is, 5.325 million shares (as of April 24). The day before, this rate was 4.1 percent; the difference is around 260,000 shares.
Now hedge funds face the decision: should they make a profit buying the shares? Because such a short sale, speculation about falling prices, follows the following principle: Hedge funds have so far borrowed and sold 45.27 million shares of Wirecard shareholders, such as the funds. investment. But to return these shares, you must buy them again in advance. Of course, if possible at a lower rate.
With an average trading volume of around 1.7 million shares per day in the past four weeks, this 5.325 million buyback is not easy to implement. Wirecard’s share has increased by more than 32 percent in the past four weeks, and by almost 23 percent since the start of the year. The high trading volume is an indication that the hedge funds have already been activated. The wide trading range of € 120 at the top and € 102.50 at the bottom suggests that some hedge funds have already started to buy back shares. It is not until next Thursday that hedge funds will have to publish their short selling rate starting on Tuesday.
The hot period of the US reporting season. USA Start today: Google’s parent company is the first of the “Big Five” technology groups to present figures. It is followed by Apple, Microsoft, Amazon and Facebook.
Why are these five companies so important? According to Bank of America calculations, they now represent more than 20 percent of the total market capitalization of the US stock barometer. USA S&P 500.
This massive market concentration even surpassed the peak of the Internet bubble peak in the early 2000s when giants Microsoft, General Electric, Cisco, Intel and Walmart accounted for about 18 percent of the S&P 500.
Look at the individual values
Lufthansa: Meanwhile, with an increase of eleven percent, the documents of the German airline have exceeded the German leading index. Meanwhile, however, the paper is back up 0.3 percent. A buying mood sparked a report that the battered airline and the government had agreed to a rescue package of nine billion euros. According to experts, the negotiations are still ongoing.
The federal government is contributing some nine billion euros to the corporation, which has been hit hard by the crown crisis, Business Insider reported Tuesday, citing corporate circles. For this, the state received a blocking minority and one or two terms of office from the supervisory board.
Lufthansa is also examining self-administered bankruptcy instead of direct entry into the state. The Condor vacation pilot has already undergone such a protection procedure. In this case, the company is placed under the supervision of an administrator and could undertake the reorganization under the previous administration. According to the UFO union, Lufthansa chief Carsten Spohr is said to have stated internally that he would rather drive the company into insolvency in the form of a protective shield procedure than allow himself to be convinced by politicians.
Continental: The auto supplier’s figures for the first quarter of 2020 are better than expected. Income and earnings decrease less than previously expected in early April. Participation increases by 0.5 percent.
Drägerwerk: The company will be included in the TecDax technology index on April 30. The medical technology maker, which was heavily used due to the crown pandemic, gained 5.3 percent on yesterday’s trading day and is now 0.6 percent less than Tuesday. The paper has increased by almost 50 percent since the beginning of the year.
Drägerwerk replaces the RIB software at TecDax, whose free float has dropped below the decisive ten percent after the acquisition by Schneider Electric. In SDax, RIB is replaced by Stratec, which has a 0.1 percent increase.
Comdirect: The turmoil in the financial markets caused by the corona crisis filled the cash registers of the Commerzbank subsidiary and caused the participation to increase 1.1 percent. “Our clients traded more in the first quarter of 2020 than ever before,” said CEO Frauke Hegemann. The online bank was able to enjoy a sharp increase in fee income and raised its forecast.
Kion With a negative sign of nearly eight percent, the forklift and warehouse technology provider’s shares are on the MDax end. Consolidated earnings fell in the first quarter. The board had already met its annual targets in late March after the effects of the crown pandemic became noticeable in the month.
Look at other asset classes
Oil prices continued to drop on Tuesday after the price drop earlier in the week. As a result, the price of US oil temporarily fell below the $ 11 mark in Asian trade. A week ago, the price of US oil USA To change the contracts he had temporarily fallen into negative territory.
In the midday trade, a barrel (159 liters) of the Brent variety from the North Sea costs $ 20.30, an increase of about 1.6 percent. The price of the American WTI variety fell about 8.5 percent to $ 11.70 a barrel.
The situation in the crude oil market remains critical. Furthermore, large oil funds are increasingly pulling out of oil futures contracts that are due in the near future. This increases pressure on prices in the oil market and decreases potential returns for investors in the future. Because the forward prices for contracts with longer terms are sometimes significantly higher.
At $ 22 a barrel, August’s future for US WTI oil is almost double that of June’s future. “This means that additional losses for many private investors appear to be inevitable, especially since the fundamental surplus situation should not change anytime soon,” says Commerzbank commodity analyst Eugen Weinberg.
The situation in the bond market has calmed down. The fact that Italy’s rating has not been downgraded also means that credit risk is in the background. The ten-year yield spread between Italian and German government bonds has now fallen to 2.20 percentage points. A few days ago, this was still at 2.48 percentage points. Ten-year Italian government bonds yield 1.73 percent, German government bonds comparable to minus 0.452 percent.
What the graph technique says
A little normality is returning to the German stock market.: The Dax has been lying on its side since early April. The key area at the bottom should be noted at around 10,300 points. The Dax was able to break away from this mark again in the last few days of trading.
The next upside resistances are 10,757 and 10,820, the most recent highs of the upward move. Or rather, because the leading index has already surpassed these marks today. If the Frankfurt benchmark is above the 10,820 mark at the close of trading, this sideways move would dissolve. Based on graphics technology, the Dax would be ready for significantly higher prices.
Also positive: the VDax, the stock market’s so-called nerve barometer, has slipped below a value of 40 for a long time and is currently at 34 meters. This index reflects the expectations of investment professionals regarding the volatility of DAX transactions in the coming days and weeks. The higher the VDax, the greater the expected fluctuations.
Here is the page with the Dax course, here are the current tops and flops on the Dax. Investors’ current short sales can be found in our short sales database.
