Dax closes more than one percent firmer – Wirecard in focus

Düsseldorf The leading German index is trading more firmly: it ends the trading day up 1.2 percent at 12,232 points. During the course of the day, the Dax initially oscillated between the profit and loss zones, but rose strongly in the late afternoon. It is still more than 40 percent above its March lows.

Thanks to the multi-billion dollar stimulus packages from central banks and governments, a sell-off is not expected, said Börsianer. The other reasons for the stable Dax close at the start of the week: news that the number of infections is declining in Germany is encouraging investors.

In the past 24 hours, as of Monday morning, 235 new infections were registered across Germany, according to Johns Hopkins University. This is the lowest value in 13 days. The number is therefore still significantly below the maximum values ​​at the end of March, when almost 7000 cases were reported on some days. For the first time in a week, no corona deaths were reported within one day.

In the United States, however, the number of infections continues to rise and slows down hope for a V-shaped recovery in the economy. “And if the V moves far away, the share prices have gone too far,” said portfolio manager Thomas Altmann from the investment advisor QC Partners.

“The pace of corona virus spread in the United States reminds many of the fact that the pandemic is far from over,” said analyst Jochen Stanzl of online broker CMC Markets. In California, the bars in several counties had to close again. Despite the infection numbers, the Dow Jones opens this Monday in positive.

The different courses of the corona pandemic are also reflected in the assessments of the asset manager Black Rock. The investment strategists upgraded European shares to “overweight”, as the Black Rock Investment Institute announced on Monday.

Europe’s economy will get going again after the expiry of corona restrictions, which will lead to a cyclical upward movement, according to the reasoning in BlackRock’s half-year outlook. The background to the development are determined measures by public health systems and a strengthening monetary policy.

The asset manager, however, downgraded US stocks to “neutral”. There, a longer course of the epidemic was to be feared, explained Blackrock. At the same time, the effectiveness of stimulus measures is dwindling. There were also new tensions between the United States and China.

Business climate brightens up

Corona concerns in Germany are also increasingly offset by economic data, which should make investors optimistic. The barometer for the business climate in the euro zone climbed 8.2 to 75.7 points in June, as the EU Commission announced on Monday.

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Industry managers and consumers were optimistic. But the mood also brightened among service providers, construction and especially in retail. However, economists surveyed by Reuters had expected a sharp increase to 80 points.

Other sentiment indicators had previously signaled a recovery in economic activity at a low level. The Ifo business climate index for Germany rose from 79.7 to 86.2 points in June.

The indicator has never seen a greater plus before. The monthly surveyed company heads saw with a large majority “light at the end of the tunnel,” said Ifo President Clemens Fuest. However, the index is still below 100 points. It is only from this value that the company bosses assess the business situation positively.

A signal from Berlin could also have eased the tension: the German Bundestag and the Bundesrat approved the reduction in value added tax from July 1st in special sessions on Monday afternoon. The grand coalition hopes that this will provide impetus for the unused economy due to the pandemic. There is once again an opportunity for growth in the second half of the year, said Federal Minister of Economics Peter Altmaier.

Critics are skeptical, however, whether the reduction in VAT from 19 to 16 percent and the reduced rate from seven to five percent will also reach consumers.

The Corona Tax Assistance Act also includes a bonus payment to families of EUR 300 per child. In addition, companies will be better able to offset losses against past profits in the future. Investments should be stimulated with better depreciation options. The German Chamber of Commerce and Industry praised the swift implementation. “Our companies now urgently need such impulses,” said DIHK President Eric Schweitzer.

Rumors about prospective buyers drive Wirecard stock

The tumbling Dax member Wirecard posted a historic price increase at the start of the week. The shares temporarily set a record of over 316 percent in the 30-year history of the leading German index. The previous leader was the Volkswagen share, which had risen by around 201 percent in connection with the failed takeover by Porsche on October 27, 2008.

In the early morning, however, the share gave way again, but held a 154 percent profit and stood at EUR 3.20 at the close of trading. Rumors of prospective buyers have probably led to the increase. According to information from the Handelsblatt, the interested parties include the French payment processor Worldline.

How serious the interest in Wirecard is, is still completely open. Furthermore, the Wirecard course allows you to slide down to the penny stick area. Bank of America has lowered its target price to one euro. Asset manager Markus Schön calculated a liquidation value of 65 million euros after the bankruptcy announcement, which corresponds to a share price of 55 cents.

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The short sellers have by no means given up their bets. Short sellers You speculate on falling prices by borrowing and selling shares in a company, for example in mutual funds. In order to return these shares after the deadline, you have to buy them again beforehand – if possible at a lower price, of course.

Short sellers had partly used the rapid price falls for buybacks, but their bets had by no means been resolved. Some hedge funds even increased their short selling rates last Thursday. The short sale rate at the end of last week was 11.36 percent. Almost 15 million papers still have to be bought back.

A look at other asset classes:

The strengthening of the good economic data and concerns about the further course of the coronavirus pandemic is also reflected in the raw materials markets. Oil prices benefited from the encouraging economic data from China and the euro zone.

The Brent variety from the North Sea and the US variety WTI rose by 0.7 and 1.3 percent respectively to $ 41.31 and 39.00 per barrel. However, impending setbacks for the economic recovery due to the resurrecting corona virus pandemic dampened the buying mood, says analyst Stephen Brennock from the brokerage firm PVM Oil Associates.

Looking at individual values:

RWE: The biggest loser at the start of the day is RWE, the shares went out 2.4 percent lower. The French wealth management company Amundi had previously criticized the group’s roadmap to phase out the coal.

Ströer: The provider of outdoor advertising fell by four percent until the market closed after the US investment bank Goldman Sachs downgraded Ströer shares from “buy” to “neutral” due to their recent above-average price performance.

Ado Properties: The German residential property group wants to take over the Berlin competitor Consus Real Estate completely. According to its own statements, Ado already has commitments from the shareholders to achieve a total stake of more than 80 percent. Ado shares lost 0.7 percent until the market closed.

Hornbach: A record quarterly result boosts Hornbach’s shares. The papers of the holding company and the hardware store subsidiary went up 6.3 percent and 3.9 percent respectively from trading. This makes them as expensive as they were more than two years ago. Hardware stores benefited from strong demand during the corona lockdown.

Here is the page with the Dax course, here are the current tops & flops in the Dax. Current short sales by investors can be found in our short sales database.

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