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Market report: DAX on track for year low

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market report

Status: 01/07/2022 07:37

The first German index had the darkest month of June in its history. At the start of July, the DAX is now aiming for its low of the year, and an imminent test seems almost inevitable.

DAX price declines are expected to continue on the last trading day of the week. Broker IG estimates the 40 German standard values ​​lower by 0.8% at 12,674 points. Yesterday the low went down to 12,619 points. At the end of trading, there was a minus of 1.7% at 12,784 points.

The blackest month of June in the history of the DAX

The minus of the main German index since the beginning of the month totaled a good eleven percent. Never before had he lost so much in June. The DAX has recently seen a series of lower lows and is therefore in a downtrend.

Only a blink of an eye now separates the DAX from a test of its yearly low of 12,439 points. The German leading index slipped to this low level after the outbreak of the war in Ukraine.

Nikkei starts July with losses

Investors are worried about the global economic outlook. Many fear that central banks, in the fight against inflation, are stalling the economic engine, which is already stuttering due to strained supply chains, by raising interest rates too sharply and too quickly.

Asian equity markets got off to a rocky start to the second half today. The Nikkei index, which includes 225 stocks, was down 1.8% shortly before the close in Tokyo. The Shanghai Stock Exchange is down 0.4%.

The darkest semester on Wall Street in decades

Wall Street comes with negative guidelines for DAX trading. Major US indices also continued their price losses yesterday. The main US Dow Jones index lost 0.8% to 30,775 points. The tech-heavy Nasdaq fell 1.3% to 11,028 points and the broad-based S&P 500 fell 0.9% to 3,785 points.

This is on top of at least the S&P 500 over the past six months down 20.6% – the darkest six months since 1970. For the Dow, the last decline was in 1962 with a minus of 15.3% during this period. The Nasdaq, whose history does not go back as far as the other two indexes, is a record low of 29.5%.

Escape to the safe haven of the US dollar

Meanwhile, the flight from risky assets to safe havens has also affected currency markets. The US dollar has recently appreciated across the board. On the other hand, the European common currency is under pressure. In the morning, one euro costs $1.0455. The day before, only 1.0383 dollars had been paid for one euro at its lowest.

Gold just over $1800

Meanwhile, the rising dollar and the prospect of further significant rate hikes by the US Federal Reserve are keeping gold demand in check. A troy ounce of the yellow precious metal costs $1802 at the end of the week. Gold can only stay just above the important $1800 mark.

Siemens: depreciation of billions on the shares of Siemens Energy

Recent Siemens Energy price cuts have had a major impact on major shareholder Siemens. A special write-down will weigh around 2.8 billion euros on fiscal third-quarter after-tax profit by the end of June, Siemens surprisingly announced yesterday. The DAX group holds a 35% stake in Siemens Energy.

Round of negotiations for Lufthansa ground staff postponed

Amid major handling issues and staff shortages, collective bargaining for around 20,000 Lufthansa ground staff began yesterday. The Frankfurt am Main negotiations have not yet been successful, as the Verdi union announced in the evening. The second round of negotiations is scheduled for July 13, 2022 in Hamburg.

Jenoptik finally separates from its military technology division

East German technology group Jenoptik is parting with its entire military technology division with around 700 employees. The sale, which was announced in November 2021, was perfect, Jenoptik AG announced yesterday. The division belongs to a fund of the British financial investor Star Capital Partnership. Jenoptik wants to focus on its core business with optical components, lasers and industrial equipment.

FDA: BioNTech/Pfizer and Moderna to adapt vaccines

The US Food and Drug Administration (FDA) has asked corona vaccine manufacturers to also modify their Omicron-suitable vaccines with respect to the BA.4 and BA.5 sublines. It is hoped that these vaccines will then be ready to be used as a booster in the fall. A few days ago, the manufacturers presented positive clinical data on the modified vaccines from their point of view – which, however, are suitable for the Omicron BA.1 sub-line.

Source www.tagesschau.de

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