Dax panel
Also on Ash Wednesday bank stocks remain under surveillance.
FrankfurtAt Ash Wednesday, equity investors are starting to take a slow approach at the Frankfurt Stock Exchange: the German leading index starts slightly lower at 11,593 points. On Tuesday evening had the Dax closed at 11,621 points and a slight gain of 0.2 percent, the highest level in four and a half months.
Investors are taking a break for good reasons: Firstly, there is no tailwind from the USA. On Wall Street, investors took profits on Tuesday. The Dow Jones Index of Defaults dropped 0.1 percent to 25,806 points.
The hopes for a successful negotiated settlement in the trade dispute between the US and China by the end of March also got a damper on Tuesday. China’s Trade Minister was quoted as saying that there was still a great deal to do, and that the negotiations had been “difficult and exhausting” during the visit to China by chief negotiator Liu He.
For investors, it therefore remains to wait: The markets should only get a real boost, if it comes to the repeal of punitive duties. Any signal for relaxation in an unfriendly economic environment should be immediately cheered by the markets.
Current club events
As far as tariffs are concerned, EU Trade Commissioner Cecilia Malmström is also on the road this Wednesday. She wants to avert an expansion of the trade dispute between the EU and the United States in talks with the US government. Stock investors in Germany, Europe and Wall Street are likely to watch the meeting with excitement.
Meanwhile, equity investors are hardly threatened by the major central banks: from the point of view of the Bank for International Settlements (BIS), central banks will not continue to tighten their monetary policy for the time being. This year, investors are not expecting interest rate increases either in the US or in the Eurozone.
Speaking of central banks: On Thursday, the Council of the European Central Bank (ECB) will meet and leading market representatives have raised high expectations in advance. Both chief economist Peter Praet as well Board member Benoît Coeuré signaled that the Council could soon deal with other long-term loans for banks.
Observers expect the ECB could announce further so-called TLTROs in April, in order to avoid an unwanted deterioration of financing conditions and to give new impetus to the economy. Had several times ECBRepresentatives worry about a possible economic slowdown in the euro area.
On the third working day of March of each year, the German Stock Exchange The composition of MDax and TecDax is planned. So also on yesterday’s Tuesday. Movers in the MDax are expected Brake specialist Knorr Bremse and the chip manufacturer Dialog Semiconductor. The inclusion on March 18 in the MDax hoisted the stock price of AppleSupplier already in early trading by almost two percent upwards. And that, even though he recorded a minus in sales and operating profit in the final quarter.
Look at the individual values
Monetary policy: Hawks and pigeons – Along these lines, the ECB is splitting
Automotive Values: The According to Handelsblatt information, the European competition authority wants formal complaints this spring on Audi, BMW, Daimler and VW for illegal agreements on diesel engines. This is unlikely to lead to any fines. All car values are clearly more than one percent down at the start of trading. Daimler leads the loser list and yields by 1.8 percent.
Deutsche Bank: Already on Tuesday were the Shares of numerous European banks according to media reports on an international money laundering network to get under pressure. On Wednesday, the unconfirmed message is added that dThe Federal Reserve has imposed restrictions on foreign banks could aggravate. That would also affect the German bank, On Wednesday morning, the price of the paper is 0.3 percent lower than at the close on Tuesday evening.
Schaeffler: The automotive and industrial supplier is not only descending from the stock market segment of medium-sized companies MDax, He also has to bury his 2020 goals, Investors react shocked: The shares fell on Wednesday morning by more than nine percent.
Theme: Market Reports
What the charting says
The Dax continues to show signs of strength: Since the multi-year low of 10,279 points at the end of December 2018, the index has gained more than 1,500 points. And without major corrections. Currently, the Frankfurt benchmark is battling the 200-day moving average, which currently stands at 11,660. This resistance is noted by many long-term investors. That this line has not been overcome, should not be surprising in view of the rapid increase.
Should the index continue to hold above 11,546 points, this would be another signal from a technical point of view. All courses over 11,347 points are clearly bullish.
Analyst check: DZ Bank recommends Deutsche Annington Immobilien Gruppe for sale
Analysts of the top cooperative institute have the Dax listed largest German housing group Deutsche Annington Immobilien Gruppe promoted from Hold to Buy. In addition, they raised the fair value of the share from € 45.50 to € 50.00. The residential real estate segment in Germany should continue to boom in 2019 and profit from low interest rates and population growth in cities and metropolitan areas with still low construction activity, analyst Karsten Oblinger wrote in his industry study. His current “Top Picks” are Vonovia and Adler Real Estate, For Vonovia speak the convincing long-term growth strategy.
With his buy recommendation, Oblinger follows the majority opinion of its colleagues. Of the 26 experts in the Handelsblatt analyst check, 21 recommend the stock for sale, four recommend it and only one recommends it for sale. However, the price target set by the DZ-Bank analyst remains below the weighted price forecast of EUR 50.81, with current recommendations being given a higher weighting than previous ones. Currently, the Vonovia share is trading at just over 43 euros.
Here it goes to the side with the Dax Course, here are the current tops & flops in Dax, current short sales Investors can be found in our Database on short sales.
Watch the pros – and be warned about short selling
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