market report
As of: 02/15/2022 4:13 p.m
Hopes of a de-escalation in the Ukraine conflict are increasing – and with them share prices across the board. But the whole thing is not done yet.
The DAX increased its gains in the afternoon and is currently up around 1.6 percent. The index has thus overcome the 15,300 point mark and is currently trading slightly below its daily high of 15,394 points. The index marked the daily low at the start of trading at 15,068 points, from which it quickly recovered.
The immediate further development stands and falls with the situation in the Ukraine conflict. At the moment there are at least signs of relaxation after Russia had sent out the first constructive signals. The Russian news agency Interfax had reported that parts of the Russian army in the south and west were returning to their barracks. “Although there is still a lot to do at the diplomatic level, most investors believe that the ongoing talks are on the right track,” said ActivTrades analyst Pierre Veyret.
“Any news of a potential de-escalation is welcome,” said Stuart Cole, chief economist at brokerage firm Equiti Capital. “But markets will want to see something more tangible before declaring the crisis over.” Meanwhile, Chancellor Olaf Scholz is closed Talks with Russian President Vladimir Putin in Moscow arrived.
Delivery Hero on the rise
There are also some significant price jumps among the individual stocks in the DAX. Above all at Delivery Hero, which is growing by more than eleven percent and is therefore at the top of the index. This after the food service supplier’s paper had recently dropped significantly. The reasons for this were primary weak business results. Since then, the papers have slipped by more than 40 percent at the top. With the exception of Henkel Vorzüge at the bottom, all other DAX stocks are also up.
Relief on Wall Street
In New York, too, prices are going up as a result of the current détente in Ukraine. All major indices are gaining under the leadership of the technology exchange Nasdaq. The leading index Dow Jones rose a good one percent. Recently, geostrategic concerns had pushed back the interest rate debate in the USA, which is usually the dominant topic on the stock exchange. The rate at which the Federal Reserve (Fed) will raise interest rates from March is still being discussed.
Billion takeover by Intel
Meanwhile, Tower Semiconductor, listed in New York on the Nasdaq, surged 42 percent to $47 after the American chip giant Intel agreed on a takeover with the Israeli semiconductor manufacturer. The deal is expected to total around $5.4 billion and values Tower at $53 a share. The Intel titles give way slightly.
The companies hope to close the deal within 12 months, pending approval from Towers shareholders and regulators. Intel intends to expand its manufacturing capacities with the takeover. The production capacities for electronic chips are scarce in many areas worldwide, also due to high demand. Chip manufacturers and contract manufacturers are therefore investing more in the expansion of their systems.
Euro is making up ground
The euro recovered noticeably on Tuesday from its significant losses against the US dollar at the start of the week. At midday, the common currency cost $1.1354, around 0.4 percent more. After the easing in Ukraine, the Russian ruble has risen even more sharply than the euro against the dollar.
ZEW index rises
Meanwhile, new survey results from Germany pointed to an economic recovery. The economic expectations of the Mannheim ZEW Institute brightened in February. “The economic outlook for Germany improved again in February, despite growing economic and political uncertainties,” commented ZEW President Achim Wambach. Thomas Gitzel, chief economist at VP Bank, explained: “The prospect of spring and a easing of the virus activity gives hope for an improved economic situation.”
The ZEW index rose by 2.6 to 54.3 points compared to the previous month. On average, analysts had expected a slightly stronger increase to 55.0 points. The assessment of the current economic situation also improved, albeit less than expected. The indicator rose by 2.1 points to minus 8.1 points.
Economy in the euro zone is growing
According to the statistics office Eurostat, the gross domestic product in the euro zone rose by 0.3 percent in the fourth quarter compared to the previous quarter. In the third quarter, however, the 19 countries with the common currency grew much more strongly by 2.3 percent. The growth of the member countries was very different. While Spain and Portugal grew strongly by 2.0 percent and 1.6 percent respectively, the German economy performed poorly. It shrank by 0.7 percent.
Oil prices fall back
Oil prices reacted to the reports from Russia and Ukraine with significant price losses. After all, Russia is an important oil producing country. In the event of an escalation, there would be a threat of far-reaching sanctions that could also affect the oil and gas sector. Speculations on delivery failures had pushed prices yesterday to their highest level since October 2014.
Audi is allowed to build electric cars in China
The sports car subsidiary of the VW Group can ramp up the production of electric cars in China in the next few years. Authorities have granted Audi and its state-owned Chinese partner FAW approval for a $3 billion factory in Changchun in the north-east of the country. Work on the facilities there is scheduled to begin in April, and the plant, with an annual capacity of more than 150,000 vehicles, is scheduled to start production at the end of 2024. Audi wants to assemble three all-electric models there, including an SUV.
Full order books for Airbus
The European aircraft manufacturer in the DAX has landed several major orders. The leasing company Aviation Capital ordered 20 short-haul aircraft of the type A220, as announced by Airbus at the air show in Singapore. Kuwaiti carrier Jazeera Airways converted an option for 28 A320neo aircraft into a firm order. At the same time, Airbus was optimistic about demand in the Far East. Over the next 20 years, more than 17,600 aircraft are expected to be sold in the Asia-Pacific region.
BHP Group in the raw materials boom
High demand for commodities has given Australian mining giant BHP a jump in profits. In the first six months of the 2021/2022 financial year, profit rose to $9.72 billion after $6.2 billion a year ago, significantly more than analysts had expected. The board announced a record interim dividend of $7.6 billion, or $1.50 per share. BHP competes with Rio Tinto and Vale for the position of the world’s largest mining company.