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Dax and Bitcoin with price rally on the stock exchange, attempt to stabilize after price slide, cryptocurrency again over 20,000 US dollars

2022-09-27T07:35:56.595Z

After the Dax slipped to its lowest level in almost two years, it initially rose significantly on Tuesday – despite many uncertainties. Bitcoin bounces back above $20,000 mark.



Enlarge image

Tendency cloudy: Stock exchange in Frankfurt am Main

Photo: Frank Rumpenhorst / dpa

The Dax started with clear gains on Tuesday: Shortly after the start of trading, the leading German index climbed by 1.2 percent to 12,388 points.

At the start of the week, stabilization had failed after the stock market barometer had reached its lowest level in almost two years before the weekend.

The EuroStoxx 50, which had marked new lows the day before, was also expected to be firmer on Tuesday morning, the

MDax

rose by 1.1 percent to 22,695 points.

The fall of the British pound to a record low and the shift to the right in Italy had unsettled investors.

Stockbrokers are also still concerned about the rise in the dollar and higher interest rates.

Investors feared profit slumps at US multinationals not only because of rising costs, but now also because of negative currency effects, said Konstantin Oldenburger, an analyst at broker CMC Markets.

"The pound sterling is currently being hit the hardest. After Brexit and another change of government, it's almost reminiscent of an emerging market currency."

The British government's planned tax cuts combined with aid due to the sharp rise in energy prices caused the British currency to fall by up to 5 percent to a record low of 1.0327 dollars at the beginning of the week

In general, it is feared that the 12,000 mark for the Dax could become the next fixed point.

The day before, the leading index had held its lowest level on Friday.

It had come close to the two-year low of almost 12,181 points, but then stabilized.

This could create a new support line in this area.

Meanwhile, on the economic side, the focus on the new trading day will primarily be on data from the USA.

Hugo Boss under pressure

In the case of companies, investors have to process balance sheets from the back rows of the stock exchange: the seed manufacturer

KWS Saat

, for example, wants to increase its profitability in the new year with further increasing revenues.

In the past financial year, the company from the small-caps index SDax had achieved a declining margin despite an increase in sales.

Verbio

also has light and shadow

.

Thanks to the favorable environment, the biofuel manufacturer achieved record results in the past financial year and met its own – gradually raised – forecasts.

Even before the weekend, the board of directors had announced a drop in profits for the new fiscal year, which has been running since July, but the market has so far been expecting less.

In addition, some analyst studies could move.

Hugo Boss

, for example, came under pressure before the stock exchange because Deutsche Bank canceled its buy recommendation for the shares in the fashion group.

The experts at Goldman Sachs gave the sporting goods

manufacturer Adidas

a thumbs-up and withdrew their buy rating because of the deteriorating consumer environment.

US stock markets: Dow continues to slide

The

Dow Jones Industrial

extended its recent losses on Monday.

The leading US index only peeked into the profit zone briefly before the mood changed again.

The nervousness on the stock exchanges remained high.

New statements from central bankers fueled investors' fears of further significant rate hikes by the Fed in the fight against high inflation and the associated economic downturn.

The rise in yields held back on the bond market, which caused uncertainty accordingly.

The Dow fell 1.11 percent to 29,261 points.

The stock market barometer had meanwhile dropped to its lowest level since November 2020.

The market-wide

S&P 500

fell 1.03 percent to 3655 points.

The Nasdaq 100

technology index

fell by 0.51 percent to 11,254 points.

Asian exchanges mixed

In Asia, the major stock markets failed to find a unified direction on Tuesday.

While Tokyo and Shanghai rallied, the Hong Kong market fell.

The stock market in South Korea also fell.

Bitcoin back above $20,000

The world's best-known digital currency, Bitcoin, was last quoted at 20,160 US dollars on the Bitstamp trading platform.

In November last year, the crypto currency reached a record high of 69,000 US dollars.

Oil prices are rising again slightly

Oil prices rose on Tuesday.

In early trading, a barrel (159 liters) of North Sea Brent cost $84.70.

That was 64 cents more than on Monday.

The price of a barrel of West Texas Intermediate (WTI) rose 58 cents to $77.29.

On Monday, the prices of the two important varieties fell to their lowest level since January.

The background to this is the gloomy economic prospects and rising key interest rates.

Both weigh on the demand for crude oil and oil products such as petrol or diesel.


Relief came from the dollar on Tuesday, which was slightly less strong against many currencies.

The dollar plays a major role in the oil markets because its exchange rate determines the price for interested parties from other currency areas.

Commodities and oil are mostly traded in US currency.

If the dollar exchange rate rises, this increases the calculated price for many consumers and reduces their demand - and vice versa.

With news agencies

Source: spiegel

All news articles on 2022-09-27

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