The markets are breathing a sigh of relief today, and in Germany there is an attempt at a market recovery. Commerzbank is also benefiting from this. Tomorrow the bank will present figures for the past quarter. In the coming months, monetary policy is likely to be the focus for financial stocks.
On Tuesday, the markets turned slightly positive again after a sharp sell-off on global stock markets yesterday. Commerzbank shares had slipped below the 100-day line at 14.11 euros, triggering a sell signal. Now the price is turning upwards, moving away from the 200-day line at 12.34 euros.
In the short term, investors at the bank are now looking at the figures that are expected tomorrow, Wednesday. With revenues of 2.60 billion euros, a net profit of 539 million euros is expected. This would be slightly less than the previous year.
Investors will of course be paying particular attention to the forecast for the current year. There could be adjustments there. In addition, it has long been expected that management will announce a second share buyback program. The only disagreement among analysts is about the amount of the buybacks.
However, the monetary policy of the Fed and the ECB will also play a significant role for the rest of the year. Fear of an economic slowdown in the USA was one of the reasons for the market sell-off in recent days. More and more experts are now expecting stronger and faster key interest rate cuts than a week ago. An out-of-sequence Fed interest rate cut is also an issue.
Commerzbank (WKN: CBK100)
Since bank stocks are strongly correlated with the general interest rate level, this would be rather bad news. Investors should therefore also prepare for higher volatility in financial stocks from the banking sector. Investors should take into account the stop at 12.00 euros.
Reference to conflicts of interest
The Chairman of the Board of Management and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly taken positions in the following financial instruments mentioned in the publication or derivatives related to them, which can benefit from any price development resulting from the publication: Commerzbank.
The board member of the publisher Börsenmedien AG, Mr. Leon Müller, has directly and indirectly taken positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price development resulting from the publication: Commerzbank
