03/23/199023/03/2020012nd3rd4th-
–
—
Crude oil and fuel prices fell sharply this month as Saudi Arabia and Russia offer quantities like never before in the battle for market share. This puts the sector under further pressure after having to cope with the weak demand triggered by the antivirus measures. In the meantime, there seems to be hardly any storage capacity left for oil and related products, and space for the storage of aviation fuel is also becoming scarce. According to analysts, retail prices are likely to drop below $ 1.99 a gallon in the next three days and below $ 1.50 by mid-April. In normal times that would stimulate the economy, but they are not normal.
In Switzerland: taxes on a broad front
The Swiss stock market also got off to a weak start to the new week. The Swiss Market Index (SMI) fell 5.37% on Monday to 8161 points and the broad Swiss Performance Index (SPI) fell 5.11% to 9991 points.
The stocks of cyclical companies such as Adecco (-9.4%), Logitech (-6.8%), ABB (-6.7%), LafargeHolcim (-6.6%) or Clariant (-6 , 3%). A report from the Finnish competitor Kone also affected the lift builder Schindler (-5.4%). This has lowered its expectations for 2020 due to the Corona crisis. Most market observers now believe that a recession is inevitable, explained Börsianer with regard to the cyclical values. Companies that are more dependent on economic development are likely to suffer from this.
In the healthcare sector, Alcon also fell by 10.6% and Sonova by 7.3%, which is above average. The big bank stocks Credit Suisse (-4.7%) and UBS (-5.7%) closed again in deep red. Partners Group (-2.2%) and especially Julius Baer (minus 1.2%) performed significantly better. Analysts’ comments were received selectively from insurers Swiss Re (minus 0.9%) and Zurich (minus 4.7%). Various experts had recently written here that the high dividend yields should slowly but surely prove to be a price prop.
Defensive values do not support
The defensive values did not represent a downward support. The two pharmaceutical stocks Novartis (minus 5.4%) and Roche (minus 4.8%) fell significantly, as did Nestlé (minus 6.1%). If the index heavyweights are sold too strongly, this is a clear sign that a broad sell-off of stocks is in progress. Traders mentioned futures-related sales in this context. Roche had recently made a name for itself with its efforts to find cures in the fight against the virus. In addition, orders for a diagnostic device have skyrocketed. Swisscom shares closed 6.4% lower, which means that all SMI stocks again had a negative annual performance.
In the broad market, papers from Bobst (minus 3.7%), Autoneum (minus 6.6%) and Datacolor (minus 10.2%) attracted a lot of attention. Bobst had already announced on Friday that production at several locations would be reduced to a minimum. Autoneum and Datacolor, in turn, reported corona-related profit warnings. Like Kudelski’s titles, they dropped by a significant 14.3%. According to traders, the recent fall in prices made the two outstanding bonds uneasy, suggesting some financial stress. The technology group is in the middle of a realignment that is associated with high upfront investments. The two “travel stocks” on the Swiss stock market once again had a difficult time: Zurich Airport lost 11.3% and Dufry 7.6%. The mail order pharmacy Zur Rose remains a darling of investors, and its paper prices rose by a further 4.9%. These increased for the sixth day in a row.
The DAX also in the red
The German DAX index also suffered losses on Monday. After a roller coaster ride of the courses, the minus signs dominated at the end of the trading day. The index went to the finish with a loss of 2.10% at 8741 points. Since the onset of the coronavirus panic four weeks ago, he has now incurred an overall loss of 35%.
The courses were already submerged in Asia – with the exception of Japan. The Chinese Shanghai Composite Index lost 3.1%. The Hang Seng Index in Hong Kong was almost 5% lower than on Friday. On the stock exchange in Seoul, the leading index Kospi declined by 5.3%.
In Asia, only Japan is up
On the Seoul stock exchange, however, the downturn continued due to investors’ concerns about the economic consequences of the coronavirus pandemic. The leading index Kospi fell by 83.69 points or 5.3 percent to 1482.46 points.
–
Related