indices in this article
In the past eleven trading days, the leading index had climbed some 19 percent to 12,913 points without a major stop, supported by optimism about the easing measures from the Corona crisis and numerous aid programs by central banks and governments.
“Everyone who is still getting started now needs to know how high the risk of setbacks are,” warned Thomas Altmann from the asset manager QC Partners.
German exports continue to plummet
Headwind for the German stock exchanges comes on Tuesday from the current figures on German foreign trade. The slump in German exports due to the Corona crisis accelerated further in April. The Federal Statistical Office said in Wiesbaden on Tuesday that exports had dropped by 24.0 percent in a monthly comparison. This is the largest monthly decline since the survey began in August 1990. Economists had feared a sharp drop on average, but had only anticipated a drop of 15.6 percent.
Focus on the Fed meeting
In addition, the US Federal Reserve is advising the further monetary policy stance until Wednesday. In order to cushion the consequences of the severe recession, like other central banks, it has opened the money gates wide. Most recently, she eased the terms of her loan program for small and medium-sized businesses on Monday. According to many experts, this has helped to alleviate the economic crash somewhat. “The real test of the economy comes when government aid programs are scaled back in the coming months,” said Rupert Thompson, chief investor at Kingswood’s wealth management. “It is far from clear whether all new unemployed will find jobs again.”
ProSiebenSat.1 in the focus of investors after the increase in shares
After increasing the stake in ProSiebenSat.1 by the Czech billionaire and investor Daniel Kretinsky, the papers of the media group are particularly in focus today. Now investors are eagerly awaiting the annual general meeting and the strategy of the major shareholders Mediaset and Kretinsky, said a trader. Cooperation between the two is conceivable to put pressure on the management of the MDAX group, it said.
Editing finanzen.net, Reuters and dpa-AFX
Image sources: Julian Mezger for Finanz Verlag
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