Morning Brief: SAP pushes DAX higher as CAC 40, FTSE 100 and USD sink

Stocks around the world show a mixed picture today as traders respond to rapidly rising tensions between the U.S. and China. In Asia, the Hang Seng index as well as the Nikkei 225 dropped by 0.40% and 0.20%, respectively. Meanwhile, the Shanghai composite was up by 0.26% and the ASX rose by 0.35%.

In Europe, most indices are in the red, with the only exception being the DAX, up by about 0.10%. The CAC 40 and FTSE 100 are both down, namely by 0.40% and 0.35%, respectively. Over in the US, futures tied to the Dow Jones, S&P 500 and Nasdaq have jumped by 0.30%, 0.32% and 0.50%.

Gold, silver and Bitcoin prices, meanwhile, are up while the U.S. dollar index is down against key currencies.

DAX index rises as SAP kicks off Qualtrics IPO

The DAX index is up slightly, mostly because of SAP, the German technology giant. The index is trading at €12,832, which is slightly higher than Friday’s close. In a statement issued yesterday, SAP confirmed it plans to kick off the IPO of Qualtrics, the analytics company it acquired for $8 billion a few years ago. Post-IPO, SAP will continue to be its biggest shareholder.

The public offering comes at a time when investors are salivating for such fintech companies. For example, shares in SurveyMonkey – which offers similar analytics products – have gained more than 45% in the past three months. Other SAAS companies like Alteryx and DocuSign have experienced a similar jump.

Other top movers in the DAX index are Covestro, Linde, Infineon, E.ON and Deutsche Post. The worst-performers, on the other hand, are Bayer, Adidas and Continental.

Meanwhile, in France, CAC 40 dropped by 0.63% with Hermes, Dassault, Air Liquide and Worldline performing best. The main laggards are Accor, Airbus, Thales as well as Safran.

In the UK, the FTSE 100 is off by 0.30%, with top performers being Polymetal, Fresnillo, Antofagasta, Glencore, and BHP, largely benefiting from the rapidly rising gold, silver and copper prices. On the other hand, the top laggards are IAG, Rolls Royce, IHG and Melrose industries.

DAX Index, CAC 40, FTSE 100
DAX Index, CAC 40, FTSE 100

Gold and Silver prices are up as US dollar weakens

Gold prices surged to its highest level on record today as the yields on US treasuries dropped. They have also risen because of the ongoing – and rising – tensions between the U.S. and China. Gold prices currently stand at $1,930, which is a few points below the intraday high of $1,950. Similarly, other metals have also jumped. Silver price is up by 6.21%, and is trading near the seven-year high of $24. In addition, copper price is slightly higher and is trading at $2.8.

Meanwhile, the US dollar has weakened against its peers because of the rising number of Corona virus cases in the U.S. It is down by 0.32% against the euro, 0.15% against the sterling, and 0.50% against the Japanese yen. Later today, the U.S. dollar will react to the U.S. durable goods orders data.

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US dollar index vs Gold and Silver Prices

US dollar vs Gold and silver price

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