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Frankfurt Stock Exchange:
The fall in the Dax continues
Photo: DANIEL ROLAND / AFP
The German stock market should continue to go down.
According to calculations by banks and brokerage houses, the Dax will start lower again on Tuesday.
The discussion about a ban on Russian gas and oil deliveries as a result of the war against Ukraine is still at the center of trading activities.
That had given a big boost to energy prices on Monday, fueling investors' inflation concerns.
The Dax had temporarily given way by 5 percent and most recently limited its losses to 2.1 percent at 12,834 points.
On Tuesday, the Dax is likely to fall below the 12,700 point mark again.
The leading index has thus lost more than 20 percent since its high at the beginning of the year and thus officially entered the "bear market".
Wall Street had also recorded significant losses.
Since the beginning of the year - on January 4, the Dax was still around 3000 points higher at 16,150 points - the Dax has lost more than 20 percent in value.
From a technical point of view, according to the Helaba experts, there is “hardly any hope left” for the leading German index.
There are also a number of factors that are currently weighing on the Dax, regardless of the war in Ukraine.
US ready for oil embargo
The government of US President Joe Biden is apparently prepared to impose an American embargo on Russian oil even if the European allies don't go along with it.
There could be a vote on this in Congress on Tuesday, an adviser to an MP told the Reuters news agency.
Then duties could also be levied on Russian products.
Uniper no longer invests in Russia
In terms of companies, more and more companies are withdrawing from business with Russia.
The energy group Uniper announced an investment freeze.
Schaeffler and Global Fashion Group will present figures on Tuesday.
The economic agenda includes data on German industrial production and the US trade balance.
Gold price above US$2000 an ounce
Gold, on the other hand, is in demand.
Measured in dollars, the price for a troy ounce (around 31.1 grams) rose to more than 2,000 dollars for the first time since the summer of 2020.
However, a little is still missing from the record high of just over $2075.
Measured in euros, gold is already more expensive than ever because of the simultaneous weakness of the common currency.
Nikkei keeps falling
The slide on the most important stock markets in Asia continued on Tuesday.
The war in Ukraine, sharply rising raw material and oil prices and the associated uncertainty continued to create a bad mood on the markets.
In Tokyo, the leading index Nikkei 225 closed 1.7 percent lower.
The Hang Seng Index in Hong Kong recently lost 0.2 percent.
The CSI 300 index of mainland China's top 300 companies fell 0.5 percent.
The markets had already given way significantly at the start of the week.
Price losses on the US stock exchanges
In view of the ongoing war in Ukraine and rising energy prices, stock prices in the USA came under renewed pressure at the beginning of the week.
The leading index
Dow
Jones
Industrial fell on Monday by 2.37 percent to 32,817.38 points.
That got the
Dow
back on track to the low it hit in late February, when the index hit its lowest level in almost a year.
After their third round of negotiations, Russia and Ukraine reaffirmed their intention to create humanitarian corridors in the contested areas.
There are small positive steps in improving logistics for humanitarian corridors, said Ukrainian Presidential Advisor Mykhailo Podoliak.
Russian negotiator Vladimir Medinsky said there should be a new attempt this Tuesday to get people to safety via the corridors.
Overall, however, he was disappointed with the meeting.
The market-wide S&P 500 lost 2.95 percent to 4201.09 points.
The technology-heavy selection index Nasdaq 100 went even further down by 3.75 percent to 13,319.38 points.
Arms companies also wanted in the USA
In view of the ongoing tensions between Russia and the West, manufacturers of armaments and defense technology were once again sought after.
Lockheed Martin shares rose 1.8 percent to a record high.
General Dynamics also reported a record high, gaining 0.8 percent.
Raytheon Technologies, on the other hand, lost 1.4 percent.
In contrast, stocks from the financial sector in particular came under pressure.
American Express lost eight percent and Visa 4.8 percent.
In view of the sharp rise in energy prices, consumers could reduce consumer spending, it said in the trade.
That would burden the major credit card operators.
In addition, consumer loans in January were well below expectations.
Banks such as JPMorgan, Wells Fargo and Bank of America also came under pressure.
Shares in the travel industry also felt the effects of the prospect of sluggish consumers as a result of rising oil and gas prices.
Titles like Trip.com and Booking had to lose feathers.
Shares in ride-hailing service provider Uber were also unable to escape this trend, falling by 4.2 percent despite a higher profit forecast for the current quarter.
The oil and gas oil companies and their suppliers and service providers once again benefited from the rising oil and gas prices.
Exxonmobil shares rose 3.6 percent and Chevron rose 2.1 percent.
Halliburton even won 6.2 percent.
Oil price continues to rise
The topic of the energy crisis is still driving investors on the commodity markets.
In view of a possible ban on Russian energy imports, the price of Brent oil from the North Sea is 3.5 percent higher at $127.50 a barrel.
On Monday it had temporarily hit a 13-1/2-year high of $139.13 a barrel and then retreated somewhat.
"If the war doesn't stop, Brent prices could go up to $156-$185 a barrel," said Kedia Commodities analyst Ajay Kedia.
Bitcoin keeps falling
Cryptocurrencies are going down again after the recent price rally: Bitcoin last fell to 38,750 US dollars on the Bitstamp trading platform on Monday.
Since the beginning of the war, however, cryptocurrencies have gained almost 20 percent, as cryptocurrency is considered a safe haven for Russian billionaires.
Stockbrokers blamed increased interest on the part of Russian investors.
A week ago, Bitcoin was still trading at $44,000.
However, Bitcoin has since fallen back into double digits in line with stock markets.
With news agencies
