9:15 p.m. – The banking crisis brings Dow Jones around one percent minus
It’s not over yet: The banking turbulence has put the financial world under pressure again: Despite a multi-billion dollar support package, the ailing major Swiss bank Credit Suisse went down again on the stock market – in the end by around 10 percent. Other major banks are said to be avoiding Credit Suisse in their transactions. In the USA, too, the situation remains tense after a rescue operation by large financial institutions for the smaller rival First Republic, but the share still closed more than 30 percent lower. Large bank stocks were also pulled down – in the Dow Jones, for example, JP Morgan Chase by 4 percent at the end. The Dow lost a good one percent overall. In the weekly balance, however, there is only a minimal discount.
8:25 p.m. – US investors flee to bonds and gold
The mood on Wall Street remains extremely tense. Another sell-off in the US banking sector due to fears of a new financial crisis is pulling prices further down. The Dow Jones is currently losing almost one and a half percent. The Nasdaq Index falls 1 percent.
Shares in regional banks have again been particularly hard hit, most notably the ailing First Republic Bank. Here the course is about to collapse by a third.
US investors are now fleeing to government bonds, which are considered safe, where prices are rising, while yields are falling in return.
The crisis currency gold is also in demand. The price jumped more than 3 percent to $1,986 a troy ounce — the highest it has been in about a year.
How did the week go for Bavarian companies on the stock exchange?
On the stock exchange, four Bavarian stock corporations recorded a plus and 31 companies from Bavaria made losses this week. The overview of the status as of Friday 5:50 p.m.:
At the end of this week, Nemetschek posted the highest price gain among listed Bavarian companies on the DAX, MDAX and SDAX. The share price rose by 4.1 percent. The papers from Rational (+0.7 percent) and Siemens Healthineers (+0.5 percent) can also increase.
Knorr- Bremse recorded the highest price losses this week at -8.9 percent, Allianz at -8.7 percent and Schaeffler at -8.3 percent.
💡 We obtain the price data of the companies listed in the DAX, MDAX and SDAX with headquarters in Bavaria from the Munich Stock Exchange (gettex), which we use with the help of automated data processing convert to text. The current prices from today, Friday, March 17th at 5:50 p.m. are compared with the values from Friday, March 10th at around the same time.
5.50 p.m. – Stock market up-to-date: companies in the DAX
A look at the 40 German companies in the DAX: Today, the stock exchange sees four public limited companies with price gains and 35 companies with losses. For one company, the price is largely at the level of the last trading day. Below is the status as of today (5:50 p.m.):
Covestro has posted the highest price gain of all listed DAX companies to date. The share rose by 2 percent. The papers from Infineon (+1.7 percent) and Deutsche Post (+1 percent) also increased.
Previous tail lights are Siemens Energy with -4 percent, Commerzbank with -3.6 percent and Munich Re with -2.9 percent price losses.
💡 We obtain price data from the Munich Stock Exchange (gettex), which we use with the help of automated data processing convert to text. Last status of the data is 5.50 p.m., the development is calculated since shortly before 6 p.m. of the last trading day. For the accuracy of the information we take no responsibility.
5.35 p.m. – Banking and real estate shares are slowing down the DAX and M-DAX
The German stock markets went down significantly again today. The DAX came out of trading with a discount of almost one and a half percent, final value: 14,768. In the end, the M-DAX was down more than 2 percent. Real estate stocks were once again the big brakes on second-line stocks. It’s been going down almost constantly here lately, today again by 5 percent at the end at TAG Immobilien and Aroundtown. At LEG Immobilien there was a minus of more than 3 percent on the boards.
Otherwise, the turbulence in the banking sector weighed on the German stock market again. The Swiss crisis bank Credit Suisse went down again by around 10 percent. And in the US, regional bank First Republic and other bank stocks have been hit again. And so in this country, Commerzbank was again one of the biggest losers in the DAX with a minus of 3.5 percent. Deutsche Bank titles fell one and a half percent.
3:56 p.m. – Cryptocurrency Bitcoin rises significantly
The crypto market has continued to grow despite the tense mood on the stock exchange. Bitcoin, the largest digital currency by market value, rises to a good 26,000 US dollars. Other crypto assets such as ether are also gaining at the end of a turbulent week. Bitcoin and Co are supported by the significantly lower capital market interest rates. “The prospect of a more cautious monetary policy by the central banks in the future is what tips the scales,” says one trader. Due to the problems in the banking sector, interest rate expectations of central banks have fallen significantly, which is depressing market interest rates. In the USA, there has even been speculation that the US central bank could start cutting interest rates later in the year. This would make money for speculating with cryptocurrencies cheaper and secure investments such as government bonds would yield less interest.
3:26 p.m. – Bargain portal Groupon under pressure
The slide into the red triggers a sell-off at Groupon. The shares of the bargain portal fall on Wall Street by 20 percent and are cheaper than ever. The company made a loss of $0.38 per share in the fourth quarter of 2022 – in the same period last year it had made a profit of $0.18. Sales fell by a third to $148 million. As a result, Groupon is withdrawing its previous guidance for free cash flow and adjusted operating margin.
3.09pm – Uncertainty at First Republic Bank drags Dow Jones lower
Investors don’t seem happy with the size of the First Republic bailout package. Investors are unsure whether the $30 billion in aid is enough to save the First Republic, it said on the trading floor. In addition, investors are probably questioning the profitability of the bank. The papers of the ailing California bank First Republic collapse by 16 percent.
The Dow Jones is down 0.7 percent.
1:22 p.m. – Ex-DWS boss with severance pay worth millions
Former DWS boss Asoka Wöhrmann receives severance pay despite investigations against DWS employees on suspicion of capital market fraud. After his resignation at the beginning of June, Wöhrmann received a settlement of 8.15 million euros from the fund subsidiary of Deutsche Bank, as can be seen from the published DWS annual report. In addition to the severance payment, Wöhrmann received an annual salary of 5.5 million euros, including a bonus of 3.1 million euros – 48 percent more than in the previous year. The former head of sustainability at the fund house had accused DWS of having engaged in greenwashing, i.e. fraudulent labeling of the information on environmental protection and sustainability aspects of investments. Due to the suspicion of capital investment fraud, German and US authorities are investigating employees and managers of the company.
1.02pm – Special meeting of the ECB Banking Supervision
According to an insider, banking supervisors at the European Central Bank do not see the stability of the sector in the euro zone being affected after the recent turbulence. Deposits at the institutions have remained stable, a person familiar with the matter told Reuters news agency after a special meeting of the ECB Banking Supervision Supervisory Board. At the special meeting, the inspectors did not see any contagion of financial institutions in the euro zone from the recent stock market turbulence. In addition, the supervisors were informed that the banks’ exposure to Credit Suisse was immaterial.
12:22 p.m. – OECD with new inflation and economic forecasts
The Organization for Economic Cooperation and Development (OECD) is raising its forecasts for the German economy and now expects gross domestic product to increase by 0.3 percent in 2023. However, only Great Britain is likely to do worse this year. The euro zone as a whole is expected to grow by 0.8 percent, the USA by 1.5 percent and Japan by 1.4 percent. But the OECD also says: “For 2024 we expect higher growth in Germany than in the other countries”. According to the OECD, the upswing is due to a high order backlog in the export business, a revival in investment and the easing of the Covid measures in China. This reduces bottlenecks in the supply chains and increases demand for German exports. The OECD is not giving the all-clear on inflation. The inflation rate is expected to be 6.7 percent this year and will only drop significantly to 3.1 percent in 2024.
11:00 a.m. – Annual inflation in euro zone at 8.5 percent
Annual inflation in the euro zone is finally up 8.5 percent in February. The change from January is 0.8 percent. The bottom line is that inflation at the beginning of the year improved only minimally.
10.15 a.m. – ECB Banking Supervision meets
The ECB not only determines monetary policy, it also has the ultimate supervision of the largest banks in the euro zone. The responsible supervisory body meets ad hoc today to exchange views and to inform all members about the latest developments in the banking sector. Apparently there was a meeting at the beginning of the week – shortly after the bankruptcy of the Silicon Valley Bank. ECB President Lagarde stressed yesterday that the euro banks are stable. They are therefore not comparable with the ailing banks in the USA and Switzerland. But if the worst comes to the worst, you have the necessary tools to provide support
The DAX recovered by 0.7 percent to 15,075.
9.15 a.m. – DAX rises above 15,000 points again
Europe’s stock markets are recovering. One reason is certainly the multi-billion dollar rescue operation by 11 American banks for the California financial institution First Republic. Deutsche Bank and Commerzbank are up to three percent more expensive. In the wake of the Silicon Valley bankruptcy, they had lost up to a fifth of their value.
The DAX has risen above the 15,000 mark again. He gains 136 to 15,104 points. His weekly balance will still remain negative.
6:15 am – Support action for First Republic
A total of 11 major banks in the USA support the Californian regional bank First Republic. All major Wall Street banks are involved in the relief effort. Bank of America, JP Morgan and Co. provide around 30 billion dollars.
The First Republic had already stumbled in the past few days, and its share price had fallen dramatically. On Wall Street, investors are reacting positively to this action. It is a sign that the industry is also willing to help each other. The Dow Jones closed 1.2 percent higher at 32,237 points.
In Asia, a turbulent week is slowly coming to an end. The Nikkei index recovered 1.2 percent in Tokyo.