Market report: DAX roller coaster ride continues

Market report

Status: 03.12.2021 07:49 a.m.

Even at the end of the week, the DAX should remain true to its pattern of the past few days: losses are followed by gains and vice versa. So today it should go uphill again. The only question is how long.

The DAX should start the last trading day of the week with a strong premium. Banks and brokers currently rate the 40 German standard values ​​0.9 percent higher at 15,398 points. The volatility on the German stock market thus remains high even at the end of the week.

The nervousness is likely to accompany the stock exchanges for some time until scientists have found out more about the dangers of the new Coronavirus variant Omikron, said Sam Stovall, chief investment strategist at the research company CFRA.

VDAX fear barometer as a warning signal

If you want to know how nervous investors really are, you should take a look at the VDAX. The VDAX measures the volatility, i.e. the expected range of fluctuation, of the DAX prices. It is therefore also called the “fear barometer” of the DAX.

Yesterday the VDAX soared again to 27 percent. This is evidence of an extremely turbulent market, which is particularly prone to sudden U-turns and price falls. The increased VDAX is therefore also a warning signal that it is better to be cautious about the currently emerging price gains.

Dow Jones recovers from collapse

Meanwhile, Wall Street has given positive guidance for DAX trading. After the recent price slide, investors in New York took the opportunity to re-enter yesterday. The US standard value index Dow Jones closed 1.8 percent higher to 34,639 points. The technology-heavy Nasdaq advanced 0.8 percent to 15,381 points. The broad S&P 500 gained 1.4 percent to 4577 points.

The price slide in response to the appearance of the newly discovered Omikron variant in the USA was exaggerated, said analyst David Madden of the brokerage firm Equiti Capital. “People will find that it’s not a big problem for the US economy to recover.”

Nikkei wins, Didi delisting unsettled

The optimistic investors also prevailed on the Asian stock exchanges in the morning. The Nikkei index, which comprises 225 values, was 1.0 percent higher at 28,029 points at the close of trading in Tokyo. The Shanghai stock exchange is currently gaining 0.9 percent.

However, the announcement by the Chinese transport service provider Didi that it intends to bid farewell to the New York Stock Exchange is causing uncertainty. This is fueling concerns about further tensions between the US and China and renewed regulation of the technology industry.

Oil prices continue to rise

Oil prices had also recently hit the ground running up and down. OPEC +, to which other producing countries such as Russia belong in addition to the members of the export cartel, surprised crude oil investors yesterday with a further increase in production volumes.

The US variety WTI then collapsed by almost five percent at times, but then turned into positive territory. In the morning, oil prices will continue to recover. Brent and WTI each rise in Asia by around 0.5 percent to 70.85 and 69.70 dollars per barrel (159 liters), respectively.

Gold with easy profits

The gold price can recover somewhat from its recent lows at the end of the week. In the morning, a troy ounce of the yellow precious metal pays 1,775 dollars, 0.3 percent more than the day before.

The euro fell slightly to $ 1.1298 in early forex trading. Investors are waiting for the US government’s November Labor Market Report to be released this afternoon.

Fitch lowers rating outlook for Turkey to “negative”

Meanwhile, the prospects for the Turkish lira continue to darken. The US rating agency Fitch has lowered the credit rating outlook for Turkey from “stable” to “negative”. Fitch cited the high inflation in the country as the reason for the move, which is expected to be 25 percent at the end of this year. Experts blame Turkish President Erdogan for this.

Allianz wants to increase dividends annually

Allianz is moving into focus among the individual stocks in the DAX. The insurer wants to pay its shareholders annually increasing dividends in the future. The distribution per share should be at least five percent above the previous year’s figure. This regulation should already apply to the dividend for the 2021 financial year.

US government sued against Nvidia purchase of arm

The US government wants to prevent a billion-dollar deal for the chip designer arm, whose technology is in practically all smartphones. The planned takeover of the British company by the graphics card specialist Nvidia could slow down innovations, the trade authority FTC justified its complaint. The $ 40 billion purchase would be the largest ever acquisition in the semiconductor industry.

Facebook is pushing for protective measures

Facebook wants to force accounts that are particularly targeted by hackers to take stronger protective measures. Two-factor authentication, which requires a freshly generated numerical code to log on to a device for the first time, should become mandatory for them. The measures should apply to accounts of human rights activists, government officials and journalists, for example.

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