Disappointing sentiment data from the economy in Europe caused the profits in the Dax to crumble on Monday. The leading index, which briefly tested the hurdle of 15,900 points in the morning, rose by 0.19 percent to 15,837.43 points by the afternoon. The MDax rose by 0.60 percent to 35,876.62 points. The leading Eurozone index EuroStoxx 50 gained 0.55 percent.
Business sentiment in the eurozone clouded over from a high level in August, somewhat more than analysts had expected. The mood in Great Britain plummeted even more clearly. The German economy, too, unexpectedly lost significant momentum in August due to industry suffering from bottlenecks. The purchasing managers’ index for the private sector fell by 1.8 to 60.6 points, as the IHS Markit institute announced on Monday for its monthly survey of hundreds of companies from the industrial and service sectors.
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Auto values are recovering
On the corporate side, auto stocks have recovered somewhat from their, in some cases, significant losses since mid-August. In the Dax, Daimler and VW each gained 0.9 percent. The BMW shares gained 0.2 percent in line with the market. The favorite in the afternoon was the share of the online food delivery service Delivery Hero with plus 2.0 percent, followed by Adidas with plus 1.6 percent.
Biontech shortly before full approval in the USA
The share of Biontech increased with very high turnover in the Stuttgart stock exchange trading by around 6.5%. This means that the share will initially jump the € 300 mark again. Only at the beginning of the month did the BioNTech share mark a new all-time high at around 400 euros. According to a report in the “New York Times”, the US FDA plans to fully approve the Biontech / Pfizer vaccine from Monday. None of the three vaccines approved in the US have received full FDA approval to date.
Bitcoin rises above $ 50,000
The digital currency Bitcoin rose above the round mark of 50,000 US dollars for the first time in three months on Monday. At its peak, the oldest and best-known crypto system on the Bitstamp trading platform cost around $ 50,560. Other currencies such as Ether, the second largest internet currency after Bitcoin, also rose at the beginning of the week. The market value of all around 11,360 cryptocurrencies rose to $ 2.16 trillion, according to the Coinmarketcap website.
Bitcoin price has risen by about $ 20,000 since mid-July. However, the original cryptocurrency is still a long way from its record high of just under $ 65,000, which was reached in mid-April. The number two digital currency by market value, ether, also gained at the beginning of the week and cost around $ 3,360. The record here is well over $ 4,000. According to the Coinmarketcap website, the total value of all cryptocurrencies is now back over two trillion dollars.
Price gains in Asia
After the previous week, which was dominated by losses, investors grabbed Asian stocks on Monday. At the beginning of the new week, the Chinese leadership announced that it would tighten supervision of the accounting firms. At the same time, however, the corona worries decreased. In particular, the tough measures taken by the Chinese authorities, even with only a few new infections, have repeatedly stoked fears of the impact on the world’s second largest economy and the global industrial supply chains.
The CSI-300 index with the shares of the 300 most important companies in mainland China rebounded 1.34 percent on Monday to 4833 points. The Hong Kong Special Administrative Region’s Hang Seng Index rose 1.10 percent to 25,123 points in late trading. In Tokyo, the Japanese leading index Nikkei 225 closed with an increase of 1.78 percent to 27,494 points. The Australian ASX 200 rose 0.39 percent to 7489 points.
Oil prices are recovering
Oil prices rose significantly at the beginning of the week. A barrel (159 liters) of the North Sea variety cost on Monday lunchtime Brent $ 66.65. That was $ 1.90 more than on Friday. The price of a barrel of the American West Texas Intermediate (WTI) rose by $ 1.77 to $ 63.91.
At times, oil prices rose even more sharply by a good two dollars. Oil prices have thus recovered somewhat from their recently marked three-month lows. The weaker dollar provided relief. If the dollar rate falls, this usually leads to higher demand from countries outside the dollar area. Crude oil is traded internationally in US currency.
The good mood on the financial markets also boosted prices on the oil market. Oil is considered a riskier asset class that often benefits from a good mood on the stock markets, for example.
In the past few weeks, however, the mood has been significantly affected by the spread of the delta variant of the coronavirus. This is accompanied by economic worries, as new restrictions on public life are threatened or have already been taken in some countries. Measures to contain the pandemic mostly weigh on economic activity and thus on oil demand.