Dax stagnates – ifo index versus virus worries

Dax stagnates - ifo index versus virus worries

A somewhat better-than-expected ifo business climate index had a disturbing effect: sentiment among german companies brightened for the third month in a row in july. Overall, however, market concerns about a new wave of corona are becoming more pronounced again.

In view of the pandemic, which is not under control in many parts of the world, the road to economic recovery is likely to be rocky, wrote analyst jochen stanzl of the trading house CMC markets. Although investors had recently jumped on the stock bandwagon, they had at the same time hedged their positions. This is primarily due to the record price of gold, but also to the weakness of the US dollar.

At the beginning of the week, europe’s largest software manufacturer SAP was in the headlines on the german market, not only with its quarterly figures, but also with its plans to list the u.S. Cloud company qualtrics, which it acquired at the beginning of last year, on the stock exchange in new york. SAP shares gained 2.7 percent among the dax favorites. The day’s winners were the very volatile shares of wirecard, which gained 15.5 percent. The preliminary insolvency administrator of the payment service provider involved in a multi-billion dollar fraud scandal had reported progress in the search for investors.

By contrast, prices in the aviation sector came under considerable pressure throughout europe. In germany, shares in lufthansa and fraport fell by around five and more than four percent respectively on the mdax. At the bottom of the dax, shares in engine manufacturer MTU lost just under three percent. Analyst david perry of U.S. Bank jpmorgan pointed to the recent rise in the number of people infected by the corona virus in several european countries, as well as the uk’s decision to send vacation returnees from spain back to a quarantane.

In contrast to the crisis losers from the aviation sector, the pandemic winners were in demand again on monday: hellofresh, teamviewer and delivery hero rose by between two and more than five percent on the mdax.

Although the rheinmetall group and automotive supplier recorded declines in sales and operating profit in the second quarter, according to its own statements it performed better than analysts had expected. The company’s announcement that it is examining strategic options for its automotive supply business also appears to have fallen on fertile ground. Share certificates gained around four percent.

The eurostoxx 50, the leading index of the euro zone, fell by 0.24 percent to 3302.84 points. The paris cac 40 and the london FTSE 100 also exited trading slightly lower. In new york, on the other hand, the dow jones industrial gained slightly at the european close of trading.

On the bond market, the current yield rose from minus 0.49 percent on friday to minus 0.48 percent. The rex pension index fell by 0.05 percent to 145.23 points. The bund future gained 0.37 percent to 176.84 points.

The euro reached its highest rate since september 2018 and last cost 1.1749 U.S. Dollars. Among other things, the persistently high number of new infections in the u.S. With the corona virus put pressure on the dollar in many important currencies and thus also drove up the euro exchange rate. The european central bank set the reference rate at 1.1760 (friday: 1.1608) us dollars. The dollar thus cost 0.8503 (0.8615) euros.

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