With new record highs in the Dow Jones and five winning weeks for the S&P 500, stocks remain in demand. But the upward momentum is slowing somewhat. The reporting season remains a positive support. Tech stocks and financials are on the buy lists. The adopted infrastructure program of the U.S. contributes to the positive mood. This is not dampened by weak data from China at present.
9 November 2021. Frankfurt (Börse Frankfurt).
Following the rally of the previous week, prices on the stock markets continue to rise, albeit less dynamically. The news situation is predominantly good. Regions such as the US market and sectors such as technology, finance and sustainability are the new old favorites
Carsten Schröder of Société Générale reports good sentiment. "The market-friendly comments and decisions of the FED in the U.S., seasonal effects and the infrastructure program of the U.S., which was passed after long negotiations, predominantly good corporate figures continue to the reporting season provide a positive overall market," reports Schröder. Investor:inside present themselves wait-and-see towards China's real estate sector, where another real estate developer admitted liquidity bottlenecks. However, the overall market is seeing rising inflows despite rising risk premiums in China IG Dollar Bonds. At the same time, weak economic data came out of China, with China's imports from the eurozone negative in October for the first time since the middle of last year. "Investors' focus is increasingly on China," Schröder reports.
"We see a steady rise in quotes along the lines of 'climbing the wall of fear,'" says Jan Duisberg of ICF Bank. "There is no euphoria, but there is also no serious disruptive fire from the economy." With equities hitting new all-time highs, he says market participants are now thinking more about being in.
Duisberg
US equities very much in demand - Europe sold off
In view of the positive situation, Schröder says it is understandable that on the equity side, global products in particular have been bought, closely followed by the US. Schröder sees inflows in both the MSCI World and the S&P 500, with the classic iShares Core MSCI World UCITS ETF USD (Acc) (IE00B4L5Y983) high on the buy lists, as well as the iShares Core S&P 500 UCITS ETF USD (Acc) (< IE00B5BMR087>), according to Schröder.
Europe, on the other hand, was less in demand. Returns in the Euro STOXX 50 were most evident in the Lyxor EURO STOXX 50 (DR) UCITS ETF - Acc (FR0007054358), flanked by less interest in the DAX, so on the sell side was the iShares Core DAX UCITS ETF (DE) ISIN DE0005933931.
"Volume is very high and rising steadily," said Andreas Schröer of Lang & Schwarz, summarizing the trade. He, too, sees particularly high demand in the MSCI World. Regionally, however, two regions stood out at Lang & Schwarz: India and Russia. "We see comparatively high volumes here. However, the numbers are not comparable to products on the MSCI World." Schröer made purchases in the iShares MSCI India UCITS ETF USD (IE00BZCQB185) and the iShares MSCI Russia ADR/GDR UCITS ETF (<IE00B5V87390>).
Despite rising oil prices, buying and selling balanced out in the oil sector. On the sell side, Schröder saw the Lyxor STOXX Europe 600 Oil & Gas UE (LU1834988278), while on the buy side he saw the iShares STOXX Europe 600 Oil & Gas UCITS ETF (DE000A0H08M3). At Schröer, too, buying and selling in the oil sector balanced each other out in recent days. "In contrast, products on natural gas were less in demand," he said.
Duisberg sees strong demand in inflation hedges such as a gold mining ETF from VanEck (IE00BQQP9G91) and an ETP from WisdomTree on silver (<DE000A0N62F2>). With the numerous crypto news, precious metals were less in the news focus, but turnover was high, he said.
Tech rally - Alphabet worth $2 trillion.
With interest rate hopes rising, the FED meeting market expectations and positive corporate data such as from Deutsche Bank and Commerzbank, Schröder reported inflows in the banking sector. The SPDR MSCI World Financials UCITS ETF (<IE00BYTRR970>) is up just over 4 percent over the week, he said.
Shares of Google parent Alphabet have risen so much that the company is valued at more than $2 trillion on the stock market. Schröder said the strength of the technology sector is also reflected in purchases in an information technology ETF, namely the Xtrackers MSCI World Information Technology UCITS ETF (IE00BM67HT60).
Future themes remain a topic
Future issues remain a topic on the stock market, as does sustainability. Schröer highlighted the iShares Global Clean Energy (IE00B1XNHC34) here, Schröder the iShares MSCI World SRI UCITS ETF EUR (Acc) (IE00BYX2JD69). A price gain of 10 percent is on the price sheet here over the month.
According to Schröder, the infrastructure program passed in the U.S. has not yet had a strong impact on individual stocks or sectors, but has contributed to the positive overall mood. The Senate had already voted in favor of the package in August, and now the House of Representatives has also approved it. This means that within ten years, $550 billion will be invested in new infrastructure projects. Together with the funds already approved, the program has a volume of 1.2 trillion US dollars. The largest share is to flow into the transportation sector
Invesco's Global Blockchain UCITS ETF (IE00BGBN6P67) is also among the most sought-after future investments in the ETF sector, Schröer reports. Duisberg notes high demand in a semiconductor ETF: VanEck Vectors Semiconductor UCITS ETF (IE00BMC38736).
Cryptos: New all-time highs in Bitcoin and Ethereum drive buying, especially in the second tier
With Bitcoin and Ethereum hitting new record highs once again, the crypto market remained in demand. "Cryptos, cryptos, cryptos" is how Duisberg sums up the sector's mood. Even if Bitcoin and Ethereum made the headlines with record highs, Polkadot and Solana would be bought above all. The corresponding ETPs then also recorded high turnover such as the 21SHARES POLKADOT (CH0593331561) and 21Shares Solana (CH1114873776). The basket ETP from 21Shares (CH0445689208), with a crypto basket is also in high demand, he said.
"We are currently dominated by second-tier cryptos such as Solana or Cardano," Schröer also reported. Accordingly, the ETNs of 21shares: (CH1114873776) and (CH1102728750) were running strong. For Bitcoin and Ethereum ETNs, demand was "stably high."
In the bond market, European corporate stocks were on both buy and sell sides. Schröder registered buy orders for maturities up to three years in the Amundi Euro Corporate Sri 0-3 Y UCITS ETF (LU2037748774) and sells across all maturities, such as in the Amundi Index Euro Corporate SRI UCITS ETF (LU1437018168).
Shares | |
USA | Buys |
World | Buys |
Europe | Sales |
Industries | |
Banks | Buys |
Technology | Buys |
Sustainability | Buys |
Energy | Buys and Sales |
Gold/Silver | Buys |
Bonds | |
Corporate bonds Europe Lz to years | Buys |
Corporate bonds Europe all maturities | Sales |
by Antje Erhard, 9 November 2021, © Deutsche Börse AG