^GDAXI - DAX PERFORMANCE-INDEX
| Previous close | 13,035.20 |
| Open | 13,132.04 |
| Volume | 0 |
| Day's range | 12,778.66 - 13,132.04 |
| 52-week range | 11,266.48 - 13,795.24 |
| Avg. volume | 80,802,231 |
Reuters VideosShares drop, gold surges as investors scurry for safety
Commuter traffic was gradually increasing in Beijing on Monday (February 24) as more residents returned to work after weeks of quarantine in their own homes. But the number of coronavirus cases in the city jumped. Meanwhile South Korea was put on high alert as the number of infections there jumped to 763. And the number of cases and deaths in Europe and the middle east rose. Analysts described the latest developments with the virus as 'game-changing'. Sending shockwaves around global markets, with investors fleeing for safe-haven gold, up over two percent in early trade. European shares took a beating, with Italy plunging more than 4% after the spike in cases left parts of the country's industrial north in virtual lockdown. That put Milan on course for its worst day since 2016. Arthur Brunner is a fixed income specialist at ICF bank: (SOUNDBITE) (German) DIRECTOR SPECIALIST FIXED INCOME AT ICF BANK, ARTHUR BRUNNER, SAYING: "The DAX had a very weak start into the new week. The coronavirus and especially its spread to Europe put the markets into a state of shock. Markets across the globe are clearly taking hits. The DAX is currently down 3.3% and in Asia too, losses were similar. There is a fear that the coronavirus will lead to a permanent weakening of the world economy." The European STOXX 600 wiped off all its 2020 gains. And London-listed stocks saw $50 billion knocked off companies' market value. Travel, tourism and luxury stocks continue to be among the worst hit from the health crisis. As well as sectors that rely on China for their supply chains.
- FX Empire
European Equities: Futures Point to a Positive Open as Bargain Hunters Return
The majors are set for a positive start to the day off the back of Monday’s slide. Stats will need to support, however…
- FX Empire
EUR/USD Daily Forecast – Euro Little Changed As Equities Plunge
While the global markets are seeing an extreme level of volatility to start the new week, EUR/USD is confined in a relatively tight range, holding close to a nearly 3 year low.
- FX Empire
European Equities: Futures Point to a Tough Day Ahead for the Bulls
The majors are set up for a slide at the open, with coronavirus news weighing heavily on risk appetite. Stats will play second fiddle today.
- FX Empire
The Week Ahead – Economic Data and COVID-19 Updates to Drive the Majors
It’s another busy week ahead. The continued spread of the coronavirus and last week’s dire PMI numbers out of the U.S could get things off to a bad start…
- FX Empire
European Equities: A Week in Review – 22/02/20
Coronavirus news updates from South Korea and beyond sunk the majors, with better than expected stats unable to shift risk sentiment.
- FX Empire
Equities In Retreat, GDP Growth In Danger, Fed Downplays Rate-Cut Outlook
Equities retreat following a surprise pullback in U.S. markets on Thursday. The risk of a coronavirus-driven market correction grow daily.
- FX Empire
European Equities: Private Sector PMIs to Hit the Majors as Risk Aversion sinks the Futures
The European majors are set to open in the red ahead of prelim February private sector PMI numbers that aren’t likely to support…
- FX Empire
European Equities: Consumer Confidence Figures Could Limit any Upside Later Today
While the futures markets point northwards, consumer confidence figures could change the mood later today…
- FX Empire
Gold On The Rise. Stronger Stocks and USD Are Not Stopping The Bullish Party.
Gold is climbing higher despite the strong American Dollar and relatively high demand for stocks.
- FX Empire
European Equities: Risk Pendulum Swings in Favor of the Bulls Ahead of the Open
Futures point to a bullish start to the day for the majors. Monetary policy support from the PBoC is expected, with no stats out of the Eurozone to spook the majors.
- FX Empire
European Equities: Risk Appetite and German Business Sentiment Figures to Test the Majors
The futures point to the red as the markets react to Apple’s profit warning. German business sentiment figures will be another test later today.
- FX Empire
EUR/USD Daily Forecast – Euro Consolidates Near 33-Month Low
The euro showed broad-based weakness last week but the momentum has slowed and EUR/USD is seen falling into a consolidation near lows not seen since 2017.
- FX Empire
European Equities: COVID-19 Updates and Sentiment towards the Economic Outlook to Influence
It could be a testy day ahead. While COVID-19 numbers reflect a slowdown in the number of new cases, the economic outlook looks bleak.
- FX Empire
The Week Ahead – Economic Data, COVID-19 Updates and Geopolitics in Focus
It’s a busy week ahead, with private sector PMI numbers likely to reflect the impact of COVID-19 on economies. Falling cases should soften the blow, however.
- FX Empire
European Equities: A Week in Review – 15/02/20
It was another bullish week for the majors, in spite of 3 consecutive days in the red. Economic data and COVID-19 remain negatives, however.
- FX Empire
European Equities: The Economic Calendar and COVID-19 Updates to Influence
Economic data and COVID-19 updates will influence. Weak numbers out of Germany and negative sentiment towards growth is a bad combination.
- FX Empire
Equity Futures Plunge, Coronavirus Spread Accelerates, Earnings Still In Focus
Equity markets plunge after China upped the number of coronavirus cases and deaths, this outbreak is far more impactful than investors realize.
- Bloomberg
Germany’s Record Share Advance May Face GDP Test
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany’s DAX Index racked up another record high on Wednesday as virus fears faded and China pledged to meet its economic targets. Despite some profit warnings, German stocks are far removed from the drama of last year, while domestic political wobbles have been brushed aside so far. But tomorrow’s GDP numbers may give an indication on the recent health of Europe’s biggest economy, while the impact of the coronavirus still lies down the road.So far, the earnings season hasn’t been great for the nation’s stocks. After about 20% of companies from the broader HDAX reported for the quarter, Bloomberg data show that earnings missed to the downside by an average of 5.9%. On a more positive note, the profit warning story count is much quieter than during the three previous periods.But as a total-return index, the DAX includes dividends, which can be vulnerable -- as luxury-car maker Daimler AG illustrated this week. The recent records for the benchmark look far less impressive when you strip out such payouts. Indeed, the DAX Price Index (DAXK) is still 5% below its 2018 record high and has failed multiple times in recent years to durably overcome its 2000 peak.What’s more, recession risks are rising. Germany’s economy is expected to have grown 0.1% in the fourth quarter, but some economists see a contraction. Given the surprise drop of France and Italy’s GDP at the end of 2019, the low expectations suggest there’s a limited buffer against the prospects of a downturn.For Germany the following applies: incoming factory orders are still descending and the indicator for further industrial production planning determined by the OECD is pointing downwards, says VP Bank AG Chief Economist Thomas Gitzel. Both indicators are part of his euro-area recession indicator, which continues to climb.Then there’s the virus. The DAX members generate 20% to 25% of their revenue from emerging markets, according to Barclays Plc strategist Emmanuel Cau, with a large majority from China. The viral outbreak increases downside risks for activity and earnings, with Europe not immune as it is “highly exposed to Chinese demand, supply chains and tourism,” he saysWhile consensus puts earnings growth for the DAX at 13% this year and 12% next year, the bigger problem might be that “companies will again have to revise their outlook repeatedly in 2020,” DZ Bank AG strategist Christian Kahler writes in a note.Within the German gauge, Adidas AG, Infineon Technologies AG and BMW AG are among stocks with the biggest revenue exposure to China. Adidas could be a stock to watch as its supply chain is also heavily exposed, with 27% of factories located in China, while the country accounts for 22% of the group’s sales, Mainfirst estimates. Citi cut its forecasts this week, while the shares have barely recovered from their 10% drop since the virus crisis escalated in mid-January.As a consequence, index earnings forecasts could fall, leading to a further rise in valuation, which is already trading above the 15-year average. “Buying shares just because of a perceived lack of alternatives is not recommended,” Kahler adds.As for the impact on GDP, Deutsche Bank AG economists even forecast a 0.2 percentage point impact on German growth from the coronavirus. Given the current low growth path, it makes a technical recession “absolutely possible,” they say.To contact the reporters on this story: Michael Msika in London at mmsika4@bloomberg.net;Jan-Patrick Barnert in Frankfurt at jbarnert3@bloomberg.netTo contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon MenonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
