Thursday, March 12, 2:48 p.m.: The aid package of ECB Against the economic consequences of the corona virus pandemic, investors on the German stock market did not calm down on Thursday. On the contrary, they reacted to them by continuing to sell out. The Dax fell by up to 10.2 percent. “Black Monday” and “Black Thursday” will probably become a “Black Week” for the leading German index. Overall, the Dax loses almost 20 percent and is heading for the second largest weekly loss in its history. It was only in October 2008, during the financial crisis, that the decline was even stronger at just under 22 percent. dpa / Reuters
After a price drop of over 7 percent, trading on Wall Street was temporarily interrupted on Thursday shortly after the start. Fears of a major kink in the global economy due to the coronavirus epidemic continue to weigh on prices. The entry ban imposed by the United States for most Europeans also worried investors. The leading US index Dow Jones Industrial slipped 7.20 percent to 21,856.91 points before the interruption. The market-wide S&P 500 declined 7.02 percent to 2549.05 points. According to the rules of the US stock exchange, trading is lost when the S&P interrupted by 7 and 13 percent. With a minus of 20 percent, trading for the day ends. dpa
Thursday, March 12, 9 a.m.: After US President Donald Trump announced a 30-day entry ban for Europeans from the Schengen area, the global financial markets reacted. At the start of trading the broke Dax again massive, the leading index fell below 10,000 points for the first time in almost four years. That meant losses of more than five percent at times. The Oil prices also declined after the announcements: The price of a barrel (159 liters) of the North Sea type Brent has meanwhile dropped to $ 34.37. That was $ 1.43 less than the previous day. The price of a barrel of the US grade WTI fell by $ 1.39 to $ 31.59 at times. dpa
Wednesday, March 11, 6:17 p.m .: After the panic sales on Monday and a pronounced ascent and descent on Tuesday, he tries Dax mid-week recovery again. The intervention of the first central banks in Europe brightened the mood somewhat. The British Federal Reserve was the US Federal Reserve Fed in the fight against the consequences of the coronavirus epidemic followed by an interest rate cut by half a percentage point and above all wants to give banks more support. Now many expect that the ECB moves on Thursday. However, caution still applies. For the Dax it went up by 0.8 percent on Wednesday to afternoon to 10 566 points – the German benchmark index gave up some of the profits from the morning. At the beginning of the week, the German stock market barometer had suffered the largest loss since the terrorist attacks on September 11, 2001, at just under eight percent.
The British central bank’s injection of money primarily helped shares in banks. The European banking index initially recorded the largest daily profit since April 2017, at six percent, but was only 2.6 percent higher afterwards. in the Dax the shares of Deutsche Bank improved by two percent and those of Commerzbank in the M-Dax by almost five percent.
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The outbreak of the corona virus makes the sporting goods companies Adidas and puma a dash through the bill. Adidas expects a drop in sales in China in view of the long-standing retail trade, Puma has given up hope that the situation around the virus outbreak will quickly normalize again. Adidas’ shares declined by eleven percent, Puma lost 2.6 percent in value. The badly battered car values set a course of recovery: Daimler, Volkswagen and BMW gained between 2.4 and 2.9 percent. The exit of K + S from the American salt business drove the shares up. The titles of the salt and fertilizer manufacturer in the M-Dax increase by 15.3 percent.
Investors in New York were unsettled, as US President Donald Trump has so far failed to provide details on measures to support the economy. The leading index Dow Jones lost 3.3 percent to 24,199 points at the opening on Wednesday.
Wednesday, March 11, 6:13 p.m .: The corona virus crisis once again caused price fluctuations in the currency markets. After significant losses from the previous day, the Euro noticeably too. The single European currency rose to $ 1.1322 by afternoon, having fallen below $ 1.13 at night. The euro benefited from the nervousness on the stock markets, as it was increasingly in demand as a safe alternative. In addition to the euro, other safe currencies such as the Swiss franc and the Japanese yen were also sought.
The pound dropped significantly at times after the Bank of England’s surprising rate cut. The British currency reacted to the decision of the central bank with a slide of more than one euro cent to 1.1312 euros. Then things went up a little. Most recently, the pound sterling was quoted at EUR 1.1440, roughly on the previous day’s level. He’s first confirmed coronavirus case in Turkey added to the country’s currency. In return, the euro rose by one percent to 7.0149 lira.
Crude oil prices declined somewhat. On the instructions of the Saudi Arabian Ministry of Energy, oil producer Saudi Aramco will increase its production volumes in the price war with Russia even faster and more strongly than originally intended. A North Sea barrel of Brent fell 2.8 percent to $ 36.20. Saudi Aramco should increase its production capacity from twelve to 13 million barrels a day, said the head of the state-owned company, Amin Nasser. Do everything you can to implement them as quickly as possible. There was no agreement with Russia at the meeting of the Opec countries last week, and the oil price then fell by up to a third. On Tuesday, Russia signaled readiness for further negotiations, which had temporarily led to a small recovery in the oil market.
Wednesday, March 11, 2:13 p.m.: The rate cut by the British central bank cannot reassure investors. The price gains at Dax and EuroStoxx50 collapsed in the wake of a weaker Wall Street. In the afternoon, both indices were hardly changed at 10,469 and 2912 points.
The British central bank had followed the Fed in the fight against the consequences of the coronavirus epidemic with an unscheduled interest rate cut of half a percentage point. Many now expect the ECB to follow suit on Thursday. Investors in New York were unsettled, as US President Donald Trump has so far failed to provide details on measures to support the economy.
On the foreign exchange market, investors once again fled to currencies considered to be crisis-proof, such as the Swiss franc and the yen. Also gold remained in demand. The troy ounce of the precious metal rose 1.2 percent to $ 1,667. Reuters
Dax begins trading with price recovery
Wednesday, March 11th, 9:30 a.m.: The Saudi oil company Aramco will ramp up its production to 13 million barrels (159 liters each) a day. With the announcement, Aramco is leaving in the face of the continued decline of the Oil price another step in the oil dispute. The state-owned company had already announced on Tuesday that production would increase to a record 12.3 million barrels per day from April 1. It was not said when the increase would continue. The Ministry of Energy ordered the start-up of production.
The Organization of Petroleum Exporting States (Opec) had not been able to agree with Russia on the weekend to cut production. As a result, oil prices fell 25 percent on Monday, the highest since the Gulf War in 1991. AP, Reuters
Wednesday, March 11, 9:26 a.m.: After the panic on Monday and a violent up and down on Tuesday, the Dax started a recovery attempt on Wednesday. The actions of the first central banks in Europe brightened the mood. Economists are also calling for economic stimulus, for example from the federal government.
However, caution still applies. The Dax rose shortly after the start of trading by 1.77 percent to 10,661 points. The M-Dax of medium-sized companies rose by 1.52 percent to 23,249 points. The leading Eurozone index EuroStoxx 50 gained 1.88 percent to 2965 points.
In the euro zone, market participants also hoped for steps from the European Central Bank (ECB), which has its regular interest rate decision on Thursday. The EU also wants to use € 25 billion to support the economy against the worst consequences of the coronavirus epidemic. dpa
Dax closes again with losses
Tuesday, March 10, 6:58 p.m .: After the biggest crash in European stock markets in years, investors sold shares again. The initial enthusiasm for planned economic stimulus programs from states and central banks quickly evaporated on Tuesday. The drastic restrictions on freedom of movement in Italy due to the coronavirus epidemic raise fears that other countries may also be forced to do so, wrote the experts from the fund provider La Financiere de l’Echiquier. “This would result in an abrupt blockade of the economy, which could lead the global economy into a recession.”
The Dax lost 1.4 percent and closed at 10,475 points, the lowest level in over a year after falling about eight percent on Monday. Thanks to an encouraging outlook, the Deutsche Post share was the top favorite in the DAX with a price increase of six percent. In the corona crisis, the first signs of a recovery in the Chinese business can be felt, the company said. The express business in the People’s Republic increased again in early March. Infineon’s shares gained a good one percent in value. The US licensing authority CFIUS approved the takeover of Cypress Semiconductor by the Munich-based chip company. In the S-Dax, Schaeffler shares rose by 2.9 percent. The chief executive of the industrial and automotive supplier, Klaus Rosenfeld, had announced on the figures that all Chinese factories are running again and the capacity utilization in China is 80 percent.
The hope of a government stimulus package worth billions lured investors back to Wall Street. That drove him Dow Jones up almost five percent. In the fight against the economic consequences of the corona virus, US $ 300 billion in wage tax cuts are under discussion. Republican Senator Marco Rubio named this number. Republicans in the Senate expressed confidence that they could agree on a stimulus package with the Democrats in the House of Representatives. The biggest winners were the oil companies that got under the wheel on Monday due to the oil price collapse. Chevron and Exxon shares rose up to 5.3 percent. amon, Reuters, dpa
Tuesday, March 10, 6:58 p.m.: The Oil prices started a countermovement on Tuesday after one of the most severe slumps in the history of the oil market. A North Sea barrel of Brent cost $ 37.87, 10 percent more than the previous day. The price of US crude oil of the WTI variety rose by more than 11 percent to $ 34.66. Oil prices benefited from a relaxation in the financial markets. Carsten Fritsch, an analyst at Commerzbank, also explained the recovery with the reaction of the US shale oil producers. Given the lower prices, these would have announced greater cuts in investment and lower oil production. Many fracking companies would already have enormous problems with high debts. In addition, the hope of aid packages for the oil market economy hit by the coronavirus epidemic provided some boost.
At the beginning of the week, oil prices had fallen more sharply than in nearly 30 years. Russia and Saudi Arabia had not agreed on an extension of funding restrictions within the Opec + on Friday. This had led to a drop in oil prices of 30 percent at times on Monday and caused turbulence on the financial markets. The countries of the Opec oil cartel and allied countries such as Russia are united in Opec +. A price war is now looming between Russia and Saudi Arabia.
By contrast, investors withdrew from “safe havens”. How the “crisis currency” became cheaper gold 1.8 percent to $ 1,648 a troy ounce after it temporarily cost $ 1702 on Monday.
After the recent significant price gains, the Euro again after. The European common currency was trading at $ 1.1308, the previous day the euro had temporarily increased to $ 1.1492. cikr, Reuters, dpa
Dax starts trading slightly recovered
Tuesday, March 10, 1:20 p.m.: A short flight of the Dax has already stopped again. In the meantime, the leading index exceeded the 11,000 point mark, but was unable to maintain the level and lost around 200 points again. In general, most of the leading indices in Europe showed a recovery – the stock exchanges in London, Paris and Rome were all up at lunchtime. The Hangseng in Hong Kong and the Japanese Nikkei index also closed in positive territory.
Tuesday, March 10, 9:08 a.m.: After a historic black Monday, the German stock index starts trading with a slight plus. In Frankfurt, the Dax opened at 10,724 points, increasing slightly more than one percent. The announcement made by US President Trump to provide relief measures to combat the corona crisis is also likely to ease the relaxation at the start of trading.
Black Monday causes horror on the stock exchanges worldwide
Monday, March 9, 6:17 p.m.: It is a historic Monday! Since the opening of the trade after September 11, 2001, the Dax no longer suffered such high losses in a single day. The leading German index lost 7.94% – in points it was even the highest loss on a single trading day in the index’s more than 30-year history.
The biggest loser was the German bankwhich lost over 13%. However, several carmakers and Lufthansa also suffered heavy losses.
At the Wall Street in New York, trading even had to be temporarily suspended due to the sharp drop in prices.