Frankfurt / Main (TEH) – At the beginning of the sixth week of the Corona crisis, investors in the German stock market have taken some courage again. After the leading German index Dax had started the day quite weakly, it worked its way into the profit range until the market closed and closed with a clear increase of 1.90 percent at 9,815.97 points.
In the previous week, the leading index had registered a profit for the first time since the start of the Corona crash on February 24th. Nevertheless, the minus has since totaled almost 30 percent.
The MDax of medium-sized stocks, on the other hand, barely made it into the green range on Monday, growing by 0.16 percent to 20,651.22 points.
In the past few days, the stock markets have developed an astonishing resilience to bad news, CMC market expert Jochen Stanzl wrote in a comment. However, one should not forget that “despite all the corona panic, we are currently in a seasonally very strong time in which stocks normally rise,” says Stanzl. Once this effect has subsided, the markets could fall into a hole in demand again.
US President Donald Trump recently prepared Americans for dramatic casualties from the pandemic.
The “economic modes” now consider a severe recession in Germany to be unavoidable due to the consequences of the Corona crisis. Exactly how bad it is is currently unclear due to great uncertainties, it said in the special report of the expert council to assess the overall economic development. Economists see the normalization of the economic situation over the summer as the most likely development at present, so that the bottom line is that gross domestic product (GDP) will shrink by 2.8 percent this year.
“In addition to the economic burdens surrounding the coronavirus, it is uncertain to what extent the central banks will provide further growth measures to ease growth,” commented market analyst Timo Emden from the analysis firm Emden Research. In addition, the fall in the oil price is viewed with concern. Investors should, therefore, be prepared for continued high volatility. “The current fluctuations in the market are not for the faint of heart,” said Emden.
The EuroStoxx 50 as the leading index of the euro zone rose by 1.35 percent. In Paris, the leading French index Cac 40 rose by 0.62 percent. The London FTSE 100 gained around one percent. In the USA, the leading index Dow Jones Industrial also presented itself firmly at the European stock market close, with an increase of 1.83 percent.
At the aircraft manufacturer Airbus and the engine manufacturer MTU Aero Engines, investors became more cautious again at the start of the week. With a loss of a good 8 percent, MTU shares were at the end of the Dax, and Airbus paper was the biggest loser in the MDax with a minus of 10.6 percent. Previously, both stocks had recovered somewhat from the crash low of March 18 with the entire market. By contrast, Deutsche Post titles were in high demand, increasing by almost 9 percent.
Bayer’s shares reacted with a price increase of just under 4 percent to very positive study data from the pharmaceutical company regarding the anticoagulant Xarelto.
Dragerwerk’s paper rose by 4.6 percent. In early trading, they had skyrocketed by more than 15 percent to 108.50 euros, the highest level since 2015. Behind this is the expectation on the market that the corona crisis should give the manufacturer of medical and security technology an order boost. Other industry representatives were also in demand on Monday, including Siemens Healthineers, Eckert & Ziegler and Carl Zeiss Meditec. The shares gained around 5 to 6 percent.
The frontrunners in the SDax were the shares of software provider SNP Schneider-Neureither, which rose by almost 14 percent. The Heidelberg company confirmed its preliminary figures published at the end of January.
Ceconomy’s shares slid 4 percent. Investors reacted to the news from the weekend that the electronics retailer is negotiating state aid.
The papers from Deutsche Euroshop had to leave significantly more feathers. They ended up at the SDax end with a minus of 12.7 percent. The store closures could also put a spanner in the works for real estate investors specializing in shopping centers, as there is a risk that retailers will no longer be able to pay their rent.
On the bond market, the current yield fell from minus 0.44 percent on Friday to minus 0.51 percent. The Rex index rose by 0.32 percent to 145.51 points. The Bund future gained 0.10 percent to 173.00 points.
The euro recently cost $ 1.1014. The European Central Bank (ECB) had set the reference rate at $ 1.1034.