Market report: Caught in the bear market

Market report: Caught in the bear market

market report

Status: 06/22/2022 09:50

Inflation and economic fears are holding investors firmly back today. Yesterday’s gains were wiped out early in the session. The DAX is back at the 13,000 mark.

Shortly after trading opened, Germany’s flagship index slipped today. The DAX is currently posting losses of around 2%. Yesterday’s faint sense of optimism has already evaporated.

Wall Street up, Asia down

The American Dow Jones standard value index closed in the evening on Wall Street up 2.2% at 30,530 points. The tech-heavy Nasdaq gained 2.5% to 11,069 points. The S&P 500 gained 2.4% to 3,764 points. However, in US exchanges after hours, prices in New York were already falling again.

In Asia too, investors found it more difficult to redeem shares in the morning. The Japanese Nikkei index lost 0.4% to 26,150 points. The Shanghai Stock Exchange fell 0.4%. The index of the largest companies in Shanghai and Shenzhen lost 0.5%.

Federal Reserve Chairman Powell before the US Congress

Remarks by a member of the US Federal Reserve (Fed) also fueled fears about the economy. Thomas Barkin believes that a quick return to a stable US economy is out of the question. The United States has been going through a relatively volatile period for about two years, the Richmond Federal Reserve Bank’s monetary watchdog said.

Fed Chairman Jerome Powell is also scheduled to address the Senate Banking Committee tonight. It follows the largest U.S. interest rate hike since 1994, which was decided last week.

Euro slides below $1.05

The common European currency is once again in a difficult position against the US dollar: the euro fell below the 1.05 dollar mark in the morning and is currently trading well below at 1.0477 dollar.

Oil prices reflect economic fears

Worries about the economy are likely to be the main reason for the drop in oil prices. In the morning, the two most important varieties are each down about three percent compared to yesterday. A barrel of the American brand WTI currently costs 105 dollars, a barrel of Brent from the North Sea is quoted at 108 dollars. Gold, precious metal, is hardly changed in the morning at 1836 dollars.

The boss of BASF is pessimistic

In the DAX, investors initially focus on BASF and Bayer. BASF shares shed around 4% after CEO Martin Brudermüller prepared investors for tough times at a conference yesterday. In the second half of the year, BASF will no longer benefit from competitors’ previously strained supply chains, and energy costs will also be high, he said. “It looks very cautious and pessimistic, although no numbers were given,” said one trader.

Bayer under pressure after court ruling

The court defeat in the United States in the dispute over the weed killer glyphosate continues to pose problems for shares of Bayer, which is currently down about two percent. The Supreme Court of the United States had rejected the appeal of the pharmaceutical and agrochemical company. Had there been a hearing and Bayer had won, the Leverkusen team could have ended the costly legal dispute over the alleged cancer risks of weed killers containing glyphosate.

Daimler Truck before the first general meeting

The truck and bus manufacturer Daimler Truck invites you to its first public general meeting in Stuttgart. During the online meeting, CEO Martin Daum and Chairman of the Supervisory Board Joe Kaeser will provide information to shareholders. Last December, the former Daimler group, which now operates under the name Mercedes-Benz, sold its truck and bus business. The largest single shareholder of the Swabian truck manufacturer is sister company Mercedes-Benz with around 30%.

FMC remains calm after court ruling

Dialysis specialist Fresenius Medical Care (FMC) sees no impact on its business after the US Supreme Court ruling against competitor DaVita. The Supreme Court yesterday dismissed a lawsuit by DaVita, with which the company sought higher reimbursements for treatment by a US hospital’s private health insurance. FMC shares in the DAX still fall nearly 3%

The downgraded Salzgitter share

The steelmaker’s share certificates also fell significantly in the morning. JP Morgan analysts lowered the rating of the action from “Underweight” to “Neutral” and lowered the price target to 31.60 against 44 euros. Fear of a drop in demand for raw materials from the major Chinese customer due to corona restrictions had recently put pressure on the sector.

Novartis successfully approved

Swiss pharmaceutical company Novartis has received EU approval for its lung cancer drug Tabrecta. In the future, the drug may be used in patients suffering from a specific form of lung cancer with a special genetic modification. Tabrecta is therefore a targeted treatment option for previously treated patients. After the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) had already given a positive assessment in April, the actual approval is no surprise.

Moderna sets up production in the UK

US vaccine maker Moderna is building a new research and production center in Britain. The UK facility is expected to start producing vaccines against new variants of Covid-19 and other diseases in 2025. Other details such as the exact location or an estimated capacity of the factory were not known at the time. departure. The UK Department of Health welcomed the move. The pandemic has shown that mRNA technology is one of the fastest ways to develop new vaccines and can also be applied to other areas such as cancer, influenza, dementia and heart disease.

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