Dax continues to climb and remains on the up

Frankfurt The loosening of the corona restrictions and the hope of a relaxation in the customs dispute between the USA and China gave the Dax a boost on Friday and increased it by 1.4 percent to 10,911 points by the close of trading. The very weak US job market report also had little impact on the week-end prices.

The MDax and the leading Eurozone leading index EuroStoxx 50 also went up strongly. Both rose by around one percent to 23,982 and 2909 points.

Stock marketers rated high-level phone call between the US and China positive, in which both sides agreed on closer cooperation in the implementation of the agreed trade agreement. This should end the smoldering dispute over tariffs and market access since US President Trump took office.

Chinese exports rose unexpectedly by 3.5 percent in April. Analysts had expected a slump of almost 16 percent. “Since expectations are so low, any positive news is welcome,” said financial market expert Rick Meckler from asset manager Cherry Lane. “Negative messages, on the other hand, are pushed aside to a certain extent.”

The main focus was however on the official US employee numbers. In the afternoon of German time, they suggested a gloomy view of further economic development.

According to this, the unemployment rate in the US rose to 14.7 percent in April as a result of the coronavirus pandemic. This is the highest level since World War II records began, the U.S. government said on Friday. Before the crisis began in February, the unemployment rate was 3.5 percent, and in March it rose to 4.4 percent.

The data from the US labor market are devastating, but at first glance it is not quite as bad as feared, the market said. The main thing now was to wait for the effects of the measures taken by the government. “A recovery in the economy is not expected until the second half of the year,” wrote Helaba analyst Patrick Boldt.

Economist Thomas Gitzel from VP Bank in Liechtenstein also added: The increase in the unemployment rate from March to April may be even higher than currently stated, because the US employment agencies are currently overwhelmed to process the entire application.

Qiagen continues to soar

Experts predict that 22 million jobs will be lost in the corona pandemic after the figures from the private employment agency ADP on Wednesday signaled the loss of around 20 million jobs. The previous negative record from 2009 is 800,000 job cuts.

Qiagen shares continued to soar on individual stocks. They rose by one percent and, at € 39.29, were as expensive as they were last 19 years ago. The German-Dutch laboratory supplier is one of the clear beneficiaries of the virus pandemic.

A stockbroker referred to media reports that the US company Thermo Fisher could improve its takeover offer for the group. Given the surge in sales of coronavirus test kits, a premium would certainly be appropriate, he said.

In addition, the Dax heavyweight Siemens was one of the favorites on the German stock market. On Friday there was a course increase of 4.8 percent. The industrial group’s sales, profits and order intake declined. The bank’s quarterly figures were better than expected, praised analyst Simon Toenessen from investment bank Jefferies. Strong business in some branches of the industrial group, a better-than-expected outlook and an announced outsourcing of business areas gave a boost.

In the middle of the largest restructuring in the company’s history and the corona crisis, the technology group presented its balance sheet for the second quarter of the 2019/20 financial year on Friday. CEO Joe Kaeser had already warned that the pandemic had hit demand in key regions and industries.

Nevertheless, Siemens, which also has many long-running large orders on its books, should come through the uncertain times comparatively robustly. For the second quarter, analysts had previously expected an average of a good 20 billion euros in sales and an operating margin of 8.5 percent. Siemens plans to launch the energy division on the stock exchange in the fall, which represents 40 percent of group sales.

Look at further individual values

Wirecard: For the recently badly battered payment service provider, things went up again on Friday. The price initially rose by more than five percent to over 88 euros. The previous day it had dropped below the resistance level of 85 euros. After the announcement that the financial supervisory authority Bafin was taking a close look at the group’s communication regarding the recently published KPMG special report, the share price fell just short of the closing of the stock exchange. In the evening, it was also announced that Wirecard was reacting to the criticism of the management by restructuring the board.

Zalando: The fashion retailer’s stock is currently zigzagging on the stock exchange. After the figures for the first quarter of 2020 were announced, they had risen to a new all-time high on Thursday. On Friday, however, she buckled slightly. The analysts at Hauck & Aufhäuser had previously devalued Zalando from “buy” to “hold”. However, the private bank raised the Zalando price target from 48 to 52 euros.

The online fashion retailer’s final figures were slightly better than the preliminary figures, according to Friday’s interpretation. The outlook for 2020 is also encouraging. However, the stock is now valued appropriately, the analysts justified their new vote. The Zalando share had rallied since the end of March and had risen by more than 80 percent with the new all-time high.

Lufthansa: The airline papers were one of the weakest DAX values ​​with minus one percent. The interim status of the ongoing rescue negotiations with the federal government was not well received by the Bernstein analysis house, among others.

Bechtle, Rheinmetall and K + S opened their books in the second stock market league: The shares of the IT service provider Bechtle jumped by 4.2 percent and also benefited from positive statements by the analysts about a “strong first quarter”. The armaments company and automotive supplier Rheinmetall’s paper, on the other hand, fluctuated between profits and losses and recently increased by 0.5 percent. Investors were torn between a good armaments business and a weak outlook for the auto division.

The fertilizer group K + S became more cautious for the full year in the first quarter after being burdened by weak business with de-icing salts and low fertilizer prices. He also cut the dividend. The share initially rose by one percent in line with the index of medium-sized stocks, but fell 1.4 percent by the close of trading.

Look at other asset classes

For the first time in two and a half months, the Bitcoin temporarily rose above the $ 10,000 mark again on Friday. If he permanently jumps over the psychologically important yardstick, observers expect another upward course.

“The euphoria about the upcoming halving inspires,” said analyst Timo Emden from Emden Research. This is how experts describe the automatic halving of the amount of Bitcoin that the producers of the decentralized currency, the so-called “miners”, receive for their maintenance of the database within a certain period of time. The upcoming reduction in their remuneration is anchored in the Bitcoin algorithm and is intended to prevent inflation. On Tuesday, May 12th, it should be ready.

“In 2020 we will see continued volatility in the markets”

Dominik Poiger, portfolio manager at US investment firm Van Eck, said that the result of the “halving” would further reduce the inflation rate of the cryptocurrency, at a time when central banks were flooding the markets with money on an unprecedented scale. “With an inflation rate that should drop from around 3.6 percent to about 1.7 percent after the halving, the cryptocurrency Bitcoin is below the two percent targets that many central banks have defined as an inflation target,” said Poiger.

In the bond market, the current yield fell from minus 0.49 percent the previous day to minus 0.55 percent. The Rex index rose by 0.04 percent to 145.34 points. The Bund future fell 0.15 percent to 173.71 points.

The euro rose slightly and cost $ 1.0849 in the evening. The European Central Bank set the reference rate at $ 1.0783 on Thursday.

With agency material.

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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