Lead index slips back - Vonovia shares up five percent

DusseldorfThe new escalation level in the trade dispute between the US and China remains the most important topic of discussion on Tuesday: the stock exchange had probably already priced in a positive outcome of the trade dispute, and consequently had to be priced out yesterday, at least temporarily.

The Dax listed in midday trading compared to the closing price of Monday 0.6 percent in minus 12,219 points. The daily high is 12,319 points, but this score was apparently too high for investors.

At first, there was a message that investors could take a deep breath. Despite the recent announcement by US President Donald Trump to impose new tariffs, China's Vice Premier Liu He is traveling to Washington for the new round of talks. This was confirmed by the Chinese Ministry of Commerce on Tuesday. The negotiator will be advised as planned on 9 and 10 May with US representatives.

A rejection of the negotiations on the part of the Chinese side would probably have allowed the prices to plummet further. Many investors would now be more courageous, said Milan Cutkovic, market analyst at broker AxiTrader. "They're counting on Trump just wanting to increase pressure on China and not following any further punitive tariffs in the coming weeks."

Trump had caused great uncertainty on the market with his words on Friday and Monday. He plans to raise tariffs on imports from China from 10 percent to 25 percent this coming Friday. The Dax Rally then came to an abrupt end.

In addition to the ongoing topic of trade dispute, the Dax heavyweight BMW moves into focus. The car maker has been in the red in the first quarter because of billions in provisions for imminent antitrust sanctions of the EU. In the core business, the loss before interest and taxes was 310 million euros. The share of the car maker loses in midday trading almost two percent to 72.60 euros.

In the foreign exchange market, the Turkish lira drew attention again with losses. It had fallen to its lowest level since October 2018 when compared to the US dollar, after the Turkish electoral authority announced it would repeat the mayoral election in Istanbul. One dollar cost 6.16 lira on Tuesday. In the opinion of the currency experts of the Commerz speaks much, the lira against the Green Bank will remain above the 6 mark.

For now is even less likely that effective measures to stabilize the troubled economy are expected in the foreseeable future. "For the Turkish Lira, it remains uncomfortable," is their conclusion. One euro now costs 6.90 lira, also the highest since October 2018.

Single values ​​in focus

Deutsche Annington Immobilien Gruppe: The real estate company is pleased about significantly more profit in the opening quarter. In the first three months of the year, the operating result increased by a fifth to 303.6 million euros year-on-year. Vonovia's securities were among the biggest winners, up 4.8 percent.

handle: In the consumer goods group, increasing investment and another weakening cosmetics business push the operating profit. Adjusted operating profit (EBIT) fell by 5.6 percent to 795 million euros in the first quarter. The Henkel share was by far the largest loser in the 30 top stocks, with losses of 4.3 percent in the meantime.

Varta: The high demand for small lithium-ion batteries, for example for wireless headphones, makes the Executive Board more confident in 2019. In 2019, Varta is aiming for an increase in sales of 14 to 16 percent instead of 12 to 14 percent. Group CEO Herbert Schein also announced that it was expanding its production capacity due to high demand. Among investors, the positive outlook was good: SDax's shares rose 7.6 percent to 42.20 euros.

Heidelberg printing: The Bundeskartellamt has prohibited the printing press manufacturer from taking over the planned takeover of the MBO Group. Heidelberger had announced the takeover in October. The goal was to expand the offering in digital finishing in the growth market of the pharmaceutical industry and customer-specific mailing systems. In response to the ban, the stock loses 2.2 percent.

Campari: The Italian spirits manufacturer Campari meets the tastes of customers and brings investors in party mood. Equities rose more than three percent on Tuesday and cost more than ever before. The group, which also produces aperol bitter liqueurs, skyy vodka and wild turkey whiskey, started the year with an increase in sales of almost ten percent to 370.1 million euros.

What the charting says

Since the high of the year with 12,436 points last Friday, the Dax is in short-term correction mode. The previous low is 12,135 points, which reached the leading index yesterday. Meanwhile, the index is listed but again more than 150 points higher. "The containment of the price losses can certainly be regarded as constructive", say the charter experts of the Düsseldorfer Bank HSBC.

From the point of view of the chart technology, the mark of 12,029 meters is an important support in addition to yesterday's correction low. This score was reached on 4 April, followed by the last correction, which turned out rather small with a minus of about 200 meters.

The next important resistance that could slow the German leading index in its upward trend is 12,344 points. After that, the previous year's high again comes into focus.

Analysts check: Credit Suisse keeps BASF on "outperform"

The Swiss bank Credit Suisse has left the classification for BASF according to numbers on "outperform" with a target price of 78 euros. He made only minor changes after the figures for the first quarter, analyst Chris Counihan wrote in a study submitted on Friday. The scope of the chemical company's balance sheet is expected to improve over the next 12 to 24 months as a result of the divestment of businesses and the generation of free cash.

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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