Germany’s DAX 30 Index: German stocks closes lower after R-rate rises above 2 – Wirecard shares crash again

• DAX closes slightly lower after R-rate rises above 2
• Wirecard shares crash again 
• German Housing replaces Lufthansa in the DAX

The German stock market closed the first trading day of the current week with slight losses. The DAX fell 0.70% to 12,242.95 points. Fears of a second wave of coronavirus continue to weigh on sentiment. 

The updated reproduction figure of the Robert Koch Institute is at 2.88 – previously it was at 1.79. Thus, the index is above the critical value of 1. The reason for the increase, however, are local corona outbreaks such as at the Tönnies slaughterhouse in North Rhine-Westphalia.   

At the same time, Bundesbank President Jens Weidmann warned that the economic recovery in Europe could be “painfully slow”. Uncertainties remain “exceptionally high”.

Wirecard shares crash again

The MDAX, which includes medium-sized German companies, closed 0.96% lower at 25,994 points. The TecDAX slipped 1.93% to 2,948.41 points. 

The reason for the drop in the German technology index was the slump in the price of Wirecard shares, which plunged by a further 46% on Monday after the German payment service provider announced in the night to Monday that the cash holdings placed in trustee accounts in the Philippines, which were reported in the balance sheet, “will most likely not exist”. 

Wirecard also announced that it is withdrawing its preliminary assessment of fiscal 2019. “Possible effects on the annual financial statements of previous fiscal years cannot be ruled out,” the statement continued. As a result, the rating agency Moody’s revoked the payment service provider’s credit rating completely. 

In the wake of the accounting scandal, the analyst firm Independent Research lowered the price target for Wirecard from 40 to 12 euros. The rating was left at “sell”. The analyst firm wrote that the only reason for hope was that bank loans with a volume of two billion euros had not been called in immediately.

Deutsche Wohnen replaces Lufthansa in the DAX

In the meantime, the airline Lufthansa has left the DAX, which comprises the thirtieth largest German shares. The share is now listed in the MDAX. Lufthansa is replaced by the real estate company Deutsche Wohnen. 

German DAX 30 key technical levels

The DAX chart is still constructive. The technical indicators such as RSI and MACD on a daily basis are encouraging. Resistances are at 12,365.70 (pivot), 12,493.66 (R2) and 12,540.17 (R3). Supports are at 12,152.97 (200-day moving average) and 11,922.62 (100-week moving average).