China shares with the Chance of bottoming out - if the second infection is absent shaft

Yesterday was Tuesday: Again a day with high volatility in the stock markets. Due to the increasing discussion of fiscal assistance programs investors attacked

China shares with the Chance of bottoming out - if the second infection is absent shaft

Yesterday was Tuesday: Again a day with high volatility in the stock markets. Due to the increasing discussion of fiscal assistance programs investors attacked yesterday, with shares, Oil and the US Dollar to be courageous, and sold government bonds and Gold. US President, Donald Trump has proposed, according to Reports, the payroll-tax cut to zero percent. Of course, there is in the election year of resistance from the Democrats. That the Central banks will act, is on the market, however, as identified.

China is on course for recovery

yesterday's visit to the Chinese leaders Xi Jinping in the former epicenter of the epidemic – Wuhan – gives hope that in China the worst is over. The infection rates are falling and the economy slowly recovers. The middle Kingdom seems to be in order for the rest of the world about six weeks to be ahead of it. Although it came on Monday, the stock market in China is a setback, with a loss of four percent of this was but in an international comparison, quite benign. Tuesday to put Chinese stocks in a counter-movement of more than one percent, title of companies from the IT sector recorded an increase of almost three percent. Deutsche Bank MSCI China vs MSCI World

there is no second wave of Infection, could the share prices continue to recover. A decisive Signal for a progressive normalization of the termination of the National people's Congress would be. This should actually be 5 am. March to take place, was postponed because of the epidemic, however, for an indefinite period of time.

the Positive effects of the Oil price fall,

In the past few days has caused in addition to the Coronavirus, especially a massively fallen price of Oil resulted in a slump in the markets. Big concern that some Oil companies get because of the collapse under pressure and, subsequently, the credit losses could increase. A lower Oil price is not for all companies and countries. Countries such as China, which are highly dependent on commodity imports, should be more likely to benefit. I guess that the profits of Chinese industry to fail companies due to falling crude oil costs this year on two percent higher.

Low commodity prices are also for private households as well, spend around ten percent of their budget on fuels and heating oil. The Coronavirus should be abating epidemic in the coming weeks in China, is expected to recover to growth thanks to the oil price decline quickly.

price drop puts European Oil companies to

After crude oil prices crashed on Monday, they rose again yesterday. Oil grades Brent and WTI rose in price by about ten percent. Nevertheless, a barrel of crude oil currently costs just under 30 US dollars, or 42 percent less than the beginning of the year. This pass also goes to the European oil giant is not without a trace.

the level of the Brent price between 35 and 45 US dollars, would only be covered 70 percent of their announced dividends from free cash flow. And also the current stock repurchase programs were no longer in the same scope of Finance. In addition, the companies have hardly any other opportunities for savings – in recent years, the Oil companies have kept up with the large investments already strong back. Therefore, investors have punished the sector in the current year is particularly strong: Ölaktien have already fallen by over 30 percent, alone on Monday, there was 20 per cent down. Bargain hunters and optimists could take advantage of these prices with appropriate risk-a willingness to put on a counter-movement.

tank company hoarding cheap Oil

the epidemic is, Although the Oil sector from the effects of the price war between Saudi Arabia and Russia, as well as the Recession in the Wake of the Coronavirus, under pressure, could flourish in a corner of the industry: international Oil companies, the ships from your fleets and you can use for floating storage.

Because of the historic fall in Oil prices in the past few days makes it for dealers to be profitable, crude oil hoarding, either on Land or at sea, and later – when the prices recover to sell. While the MSCI World Energy Index declined since the start of the week, in Euro, about 20 percent, increased Rates for the Chartering of super tankers alone on Monday is already up to a third. The prices of oil Tanker shipping companies increased in the same period, between 17 and 23 percent. The Oil prices in the Wake of a global economic stabilization to recover, are likely to benefit the shipping companies, in turn, of increasing a Transport request.

the number of the day: 55.000

As Dan Cain from Twinsburg, Ohio, Recently, his local post office, attended, awaited him a Surprise: 55.000 letters, all addressed, all with the same content. The cause was a software error, the credit company, at the Cain's daughter, a student loan was included. Irony on the edge: The company had to pay not only costs $ 11,000 to Porto, but had been charged in Writing, the loan interest rates wrong. Now Cain is hoping that the correction reached only in a single copy.

I wish you a bug free day.


Ulrich Stephan

chief investment strategist for Private and corporate customers

With the stock recommendations of the Bernecker exchange-compass, you can get more out of your money! (Partner activity) 30 days free to try! Stock markets crash due to Coronavirus: Three mistakes may investors make now FOCUS Online stock markets plunge due to Coronavirus: Three errors may not make investors now

Date Of Update: 11 March 2020, 13:00