Market report: DAX before a new price slide

market report

Status: 01/21/2022 07:41 a.m

Interest rate worries and fears about Ukraine keep investors in suspense. The DAX is likely to start trading with significant losses. The brutal sell-off on Wall Street weighs heavily.

The German stock market is about to start trading dramatically. Banks and brokers rate the DAX at 15,703 points at the moment. That would equate to a price slump of 1.3 percent.

Does the DAX follow “smart money”?

The leading German index would consequently give up the important support at 15,800 points, which it was able to reconquer yesterday in the course of trading, and thus set a negative technical course.

The world’s leading stock exchange in New York comes with extremely negative specifications for DAX trading. In late trading, when many professionals and institutional investors are active, a veritable sell-off begins. The so-called “smart money” (smart money) withdrew from US stocks – also a clearly negative signal.

Price slide in the Dow and on the Nasdaq

The US standard value index Dow Jones ultimately went 0.9 percent lower to 34,715 points from trading. The tech-heavy Nasdaq fell 1.3 percent to 14,154 jobs. The broad S&P 500 lost 1.1 percent to 4482 points.

The ongoing tensions between Russia and Ukraine are worrying investors, as is future interest rate policy in the USA. According to the CME Group’s Fed Watch Tool, 88 percent of market participants now expect the key interest rate to be raised to between 0.25 and 0.5 percent at the Fed meeting in March.

Nikkei weaker towards the end of the week

Yesterday’s Wall Street setback is also weighing on Asian stock markets today. Yesterday’s sell-off in US stocks was brutal and will dominate Asia this morning,” said Rob Carnell, chief economist at ING in Singapore. The 225-stock Nikkei index just ended the weekend down 0.9 percent to 27,522 points The stock exchange in Shanghai is currently losing 0.7 percent.

Euro and gold with slight gains

The dollar is under some pressure in Asian forex trading. In return, the European common currency can make up ground. The euro rose 0.1 percent to $1.1325. A troy ounce of gold costs 1841 dollars, 0.1 percent more than the previous day.

Siemens Energy lowers forecast

After disappointing quarterly figures from its wind power subsidiary Siemens Gamesa, the DAX group Siemens Energy has also lowered its expectations for the current year. The company announced that the sales development compared to the previous year, adjusted for currency translation and portfolio effects, will be between minus two and plus three percent in 2022. So far, Siemens Energy had assumed minus one to plus three percent.

Zalando starts major share buyback

The online fashion retailer Zalando wants to buy back up to 2.2 million of its own shares. Up to 200 million euros are to be spent on this, as the DAX company announced. The papers are to be used for Zalando’s stock option program for employees and board members.

Netflix stock plummets after disappointing outlook

The streaming service Netflix caused disillusionment among investors with its subscriber numbers in the past quarter. For the first quarter of 2022, the company also expected a disappointing increase of only 2.5 million subscribers. The shares of the Californian entertainment group lost around 20 percent in after-hours trading.

BionTech vaccine gets special approval in Japan

As announced by the pharmaceutical company Pfizer, the vaccine against the corona virus developed by Pfizer and BioNTech for children aged five to eleven years has received special approval in Japan. The two companies’ mRNA vaccine is the most commonly used vaccine to date in Japan to protect against the coronavirus.

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