Market Report: Who’s Smart Sells?

market report

Status: 01/24/2022 08:05 a.m

The pros on Wall Street, the so-called “smart money,” are running away from stocks. After the recent sell-off at the beginning of the new week, the DAX is also threatened with price losses again.

The DAX is likely to start the new trading week at a discount. Banks and brokers rate the 40 German standard values ​​0.4 percent lower at 15,540 points. A sell-off driven by concerns about interest rates had already swept through the DAX on Friday; in the end there was a minus of 1.9 percent to 15,604 points on the chart.

DAX before sell signal?

In the DAX, the focus at the beginning of the new week is on the 200-day moving average, which is currently around 15,600 points. Should the DAX fall below this moving average of the past 200 trading days, it would send a strong sell signal. Then things would get very uncomfortable on the German stock market.

Price drop at Netflix

Negative guidelines for DAX trading come from Wall Street. A price drop at Netflix scared off many investors on Friday, and technology stocks in particular were under pressure. Netflix papers rushed down up to 25 percent and marked the lowest point in almost two years at $ 380.

Dow Jones and Nasdaq deep in the red

The Dow Jones index of standard values ​​closed 1.3 percent lower at 34,265 points. The tech-heavy Nasdaq fell 2.7 percent to 13,768 points. The broad S&P 500 lost 1.9 percent to 4397 points.

Particularly striking: Once again, the price losses fell, as on the day before, especially in the last two hours of trading – i.e. when a particularly large number of professionals and institutional investors (“smart money”) are on the move.

Tokyo stock market up slightly ahead of Fed meeting

The stock exchange in Tokyo was initially weaker at the beginning of the new week, but was then able to turn positive. In general, the market was cautious ahead of the eagerly awaited meeting of the US Federal Reserve. The 225 Nikkei Index closed 0.2 percent higher at 27,588 points.

Evergrande share increases in percentage terms in double digits

On the Hong Kong stock exchange, papers from the highly indebted Chinese housing group Evergrande are up almost twelve percent. The background is a media report on Friday, according to which the provincial government of Guangdong intends to present a restructuring plan by March.

Gold and Dollar in demand in early trade

The “safe haven” US dollar is in demand in Asian foreign exchange trading. In return, the euro loses 0.2 percent to $ 1.1322. Meanwhile, gold prices rose 0.2 percent to $1,839 a troy ounce. The yellow precious metal has been in an uptrend since December.

Infineon sees the end of the chip crisis in 2023

The semiconductor manufacturer Infineon expects the chip crisis in the automotive industry to end no later than next year. “I assume that we will be able to cover the demand well in 2023. We will still have a strong limit for microcontrollers that we have manufactured externally in 2022,” said Infineon’s automotive boss Peter Schiefer of “Automobilwoche”.

Lufthansa interested in Alitalia successor ITA?

According to a press report, Lufthansa could seek a 40 percent stake in Alitalia’s successor company ITA Airways. Both sides are close to an agreement, the Italian newspaper “Il Foglio” reported, citing unnamed sources. The plan, which could be announced in the coming days, is subject to approval by the European Union.

Polish loans burden Commerzbank

Due to the uncertainty surrounding foreign currency loans in Poland, Commerzbank is preparing for another burden: At the end of 2021, the Polish subsidiary mBank made additional provisions in the equivalent of around 436 million euros. Commerzbank’s operating result in the fourth quarter will also be affected by this amount.

TUI sees itself on course

TUI sees itself on course almost two years after the outbreak of the corona pandemic. Among other things, the “very positive development” in England encourages the company, which is supported by state aid worth billions, in its expectation of significantly improving sales and operating results in the current financial year, said CFO Sebastian Ebel of the “Börsen-Zeitung”.

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