German Manager Magazin: Stock market: Falling oil prices support Dax001815

A drop in oil prices supported the German stock market on Thursday despite ongoing concerns about inflation and the economy. Of the dax

rose 0.46 percent to 14,407.04 points in the first few minutes of trading. Of the MDax

of medium-sized companies increased by 0.43 percent to 29,879.28 points. The leading eurozone index Euro Stoxx 50

gained around 0.5 percent.

On Monday, at 14,589 points, the Dax approached the interim high of April with just a few points. According to stockbrokers, however, there has been a lack of follow-up purchases since then. Due to the fear of a massive economic slowdown, there is very little interest in buying at the current price level, observed analyst Thomas Altmann from QC Partners: “And positive news that could trigger a real wave of buying is still in short supply.”

The experts of CreditSuisse described market sentiment as fragile. Although current economic data speak for a slower pace in the US interest rate turnaround, this has not really helped the shares, it said. In the Dow Jones and Nasdaq 100 there were new multi-week highs immediately after the start of trading on Wednesday, but they did not last. In Asia, Hong Kong’s Hang Seng Index also paid tribute to the recent recovery on Thursday.

According to Altmann, concerns about interest rates and inflation remain huge. Investors are now watching the US jobs reports, which will be released on Thursday and Friday, spellbound and anxious. “Because if the US job market defies the difficult economic environment,” Altmann explained, there would be no reason for the US Federal Reserve to put the brakes on interest rates.

Wall Street with losses

Wall Street was weighed down on Wednesday by the renewed fear of the Fed raising interest rates more quickly. The Dow Jones closed 0.5 percent lower at 32,813 points. The tech-heavy Nasdaq fell 0.7 percent to 11,994 jobs. The broad S&P 500 lost 0.7 percent to 4101 points.

Interest rate speculation was fueled by the surprising rise in the barometer for the mood of US manufacturing purchasing managers. “Interest rates will continue to rise,” predicted Paul Kim, head of asset manager Simplify ETFs. Since the Fed will probably also reduce its securities holdings, the era of ultra-loose monetary policy is coming to an end after more than a decade. Therefore, further price losses of risky investments such as shares must be expected.

Oil prices under pressure ahead of OPEC meeting

However, a drop in the oil prices worries. Before a regular meeting of the Opec+ funding association, press reports caused a lot of speculation. The business daily Financial Times reported that the oil giant Saudi Arabia has signaled to western countries that it will expand its production if Russian production falls significantly. Since high energy prices in particular are driving inflation, this could give investors some hope.

In the morning, a barrel (159 liters) of the North Sea variety cost Brent

$114.46. That was $1.83 less than the day before. West Texas Intermediate (WTI) barrel prices fell $1.96 to $113.30.

BMW share in focus

Among the individual values ​​​​could be the shares of bmw be in focus. The Munich public prosecutor’s office searched business premises at the BMW headquarters and in Steyr, as became known on Wednesday afternoon. The reason was a request for legal assistance from the South Korean authorities in 2020, which involved dozens of engine fires in BMW cars in South Korea in 2018. The public prosecutor’s office in Seoul recently filed charges against BMW Korea and employees there on suspicion of concealing technical defects and starting recalls too late, said a company spokesman. The BMW papers appeared before the market on the Tradegate trading platform compared to the Xetra conclusion.

The shares of Aixtron, Wacker Chemie and Telefonica Deutschland could benefit from being included in the Stoxx Europe 600 selection index on Thursday. As the index subsidiary Qontigo announced to Deutsche Börse the previous evening, the ascent will take effect on June 17 after the stock exchange closes. In addition, it could have a positive effect that the Adidas-Aktie, which had been named as a potential candidate for decline from the Stoxx Europe 50, now remains in the leading index.

Bitcoin falls below $30,000

The world’s most famous digital currency Bitcoin listed on the trading platform bit stamp

most recently at 29,824 US dollars and thus around 600 dollars lower than last night. After the price rally of the past few days, there is another setback of more than 5 percent compared to the previous day. Bitcoin hit a record high of $69,000 in November last year.

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