Market report: hard DAX setback due to virus variant?

Market report

Status: 11/26/2021 7:54 a.m.

The reports about a new dangerous variant of the corona virus could push the DAX well below the 15,700 mark today. Experts anticipate heavy price losses before the start of trading.

Market observers from IG Markets expect the DAX to start trading today with a loss of around 1.7 percent at around 15,650 points. This would mean that the German benchmark index would swivel back into correction mode. Last week it had reached a record high of 16,290 points.

Should the DAX actually open Xetra trading at the level currently estimated by IG, it would be the lowest since the end of October. Above all, the aggravated corona situation in this country and economic worries are increasing the downward pressure. In addition, a new, possibly very dangerous, coronavirus variant has appeared in southern Africa.

Experts fear that variant B.1.1.529 is not only highly contagious because of its unusually large number of mutations, but that it could also penetrate the protective shield of the vaccines more easily.

Nikkei with heavy losses

On Thursday, the German benchmark index had gained 0.3 percent to 15,917.98 points after five weak trading days. Since Thanksgiving was celebrated in the USA yesterday, the stock exchanges had to do without the orientation of Wall Street with thin sales.

Today there is only a shortened trade in New York, so that correspondingly thinner trade sales in Europe can also be expected. However, this can lead to individual trading actions having a greater impact on prices.

In Asia, news of a new variant of the virus is also weighing on, fueling concerns about future growth and higher US interest rates. The Nikkei in Japan is currently around 2.5 percent in the red, the Topix has lost more than two percent.

Oil prices are falling sharply

The prices for a barrel (159 liters) of WTI or Brent oil are falling significantly. The economic worries, which are currently increasing again worldwide due to the worsening corona situation, could be reflected in the massive discounts.

All-clear at K + S

The fertilizer group K + S can breathe a sigh of relief at the doubts of the financial supervisory authority BaFin about the balance sheet for 2019 and the first half of 2020. The company announced that the final findings of the German Audit Office for Accounting (DPR) commissioned by the supervisors did not trigger any value adjustments.

The background is the suspicion of the BaFin that a billions in depreciation of the Hessians in autumn 2020 due to the fall in fertilizer prices may have been too low. In February, the supervisors commissioned the FREP to examine the relevant balance sheets. The final findings did not result in any need for adjustments to the valuations in the area of ​​potash and magnesium products, according to the announcement.

Will Software AG be sold?

According to some sources, Software AG could be sold. The company is considering strategic options, the Bloomberg news agency reported, citing people familiar with the matter. One possibility is the sale of the company. The company’s market value is currently 2.6 billion euros. In an initial reaction, Software AG’s share price jumped more than ten percent on the Tradegate trading platform.

The deliberations were at an early stage. There is also no guarantee that the company will decide to sell. At least the Software AG Foundation founded by company founder Peter Schnell in the 1990s would have to agree, it holds more than 30 percent of the company. A Software AG spokesman did not want to comment on the matter.

Tesla could invest in Shanghai

The US electric car maker plans to invest up to 1.2 billion yuan ($ 187.91 million) in expanding the production capacity of its Shanghai plant. This is reported by the state newspaper “Beijing Daily”. In the future, 4,000 more people are to be employed in the Tesla factory, so that the number of employees will rise to 19,000. The newspaper claims to have found the information on a Shanghai government platform for corporate environmental disclosure. Tesla has not yet responded to a Reuters request for comment.

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