The Chinese yuan fell again this morning after the Chinese central bank (PBoC) hit the dollar / yen set at 6.9996 close to the important 7 mark, The case under this brand was the reason for the significant price losses on the stock exchanges worldwide.
Meanwhile, the PBoC has issued an opinion after Washington called China a currency manipulator, The Chinese central bank said that the devaluation of the yuan was largely due to a change in the market and that the allegations made by the US were pointless.
"What is more important is that the state television reported unusually long on the opinion of the PBoC," commented Commerzbank forex analyst Hao Zhou. This indicates that China is entering a harder pace in the negotiations. "After the risk of a renewed escalation remains elevated, the market must prepare itself against further turbulence".
The current glimmer of hope: The negotiations between China and the US should be continued in September.
How nervous the markets are is also shown by the volatility indices. They measure, derived from option prices, what fluctuations investors expect in the markets in the near future. High volatility indices are a sign of impending losses.
And the signs are clear: The vix for the US leading index S & P 500 in the US has roughly doubled, the VDax new on the German leading index has risen in recent days by up to 45 percent. These indices, also called "fear barometers", record at levels from the beginning of the year.
The increasing fluctuations and other "market-technical factors could accelerate a sell-off on the stock market," says Ulrich Stephan, chief investment strategist for private and corporate clients at Deutsche Bank. Funds with limits on maximum fluctuation margins had already started selling last week,
The flight to the supposedly "safe harbors" continues. The gold spot price on Wednesday increased by one percent to around $ 1490, the highest level in more than six years. The price of gold as a futures contract even rose above the $ 1500 mark.
German government bonds are also in demand, which reduces the yield. The value of German government bonds fell to a new record low of minus 0.556 percent today. Presumably, this negative value is not the end of the flagpole. The British bank HSBC has lowered its year-end forecast for the yield on ten-year government bonds from minus 0.20 to minus 0.80 percent.
Look at the individual values
Wirecard: In the first half of the year, the payment service provider Wirecard achieved an operating profit of 342 million euros – an increase of 36 percent. The second half of the year should be even better. But investors had already speculated in advance on an increase in the forecast and apparently take profits. That's why the stock drops around two percent at the opening, and was able to narrow the decline to 0.8 percent by now.
Commerzbank: The slump in interest rates and the economic slowdown added to the bank in the first half of the year. The profit in the first half of the year slumped by 27 percent to 391 million euros. That's why the paper lost 3.2 percent in the morning trade.
Munich Re: The reinsurer Munich Re has posted the highest quarterly profit in four years with 993 million euros in the period between April and June. The bulk of this was contributed by the core business of reinsurance. The outlook for the full year remains unchanged at 2.5 billion euros and at 2.8 billion euros for 2020. The paper is up 1.4 percent.
Eon: In the first half of the year, the energy company earned significantly less than a year ago, the profit has halved. Nevertheless, the stock initially gained one percent, but gave up the gains in the morning trading again. Earnings before interest and taxes (EBIT), adjusted for special effects, fell by twelve percent to 1.7 billion euros. Net debt increased by 3.6 billion euros to 20.2 billion euros. Eon confirms the forecast for the full year.
Continental: The auto parts supplier and tire manufacturer had to let go strong in the past second quarter due to the industry weakness. The profit attributable to shareholders slumped by 41 percent to 484.8 million euros. "For the second half of the year, we expect no headwinds," said CFO Wolfgang Schäfer. The stock is up 1.2 percent in the morning trading session. Probably because dhe does not exclude auto parts suppliers in tightening his austerity program staff cuts and relocations.
What the charting says
According to chart technology, there are two news. The good: The negative discount potential of over 400 pointsthat the technical analysts HSBC the Dax has granted, the index has worked within a few trading days.
But there can be no talk of relaxation, especially as the renewed weakness at the end of yesterday's trading session was particularly worrying for investors. The new low at 11,568 points from yesterday's Tuesday shows no stabilization.
The Frankfurt benchmark Dax has a lot to lose in the current situation. Because he struggles with the medium-term decisive 200-day line, which is currently at 11,640 points. Along with the June low of 11,621 counters is that's the crucial switch.
Watch the pros – and be warned about short selling
In order to stabilize the German leading index, the downward gap of last Monday must first be closed. Such downside gaps arise when the lowest price of the previous day is higher than the daily high of the subsequent trading day. So the daily low last Friday was 11,837 points, the daily high on Monday this week at 11,798 points. This gap is now considered resistance.
Here's the page with the Dax-course, here are the current tops & flops in the Dax. Current short selling by investors can be found in our database on short selling.
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