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FRANKFURT (dpa-AFX) – Dax (DAX 40) continued to stabilize on Tuesday. However, the decent gains from the recovery increasingly crumbled over the course of the trade. The reason was the impending US stock market opening after a long bank holiday weekend. Signals for a positive start to trade, which initially went steep upwards, have weakened recently.
In the afternoon, the German stock market barometer rose 0.32 percent to 13,308.36 points, after temporarily rising well above 13,400 points. MDAX midsize companies recently gained 0.32 percent to 27,569.93 points.
Market analyst Salah-Eddine Bouhmidi of financial services provider IG has already warned investors “should be on their guard” given the striking stabilization of the Dax as growth may only be short-lived. According to him, this is confirmed not only by the dark picture on the chart. The main theme in the markets remains the same: massive inflation and central bank countermeasures in the form of interest rate hikes. “In order to contain uncontrolled inflation, there is nothing else to do but raise interest rates faster than expected. At the moment, the only hope is to believe that the European Central Bank (ECB) will find a golden mean. “
On Thursday, Dax barely managed to stay at 13,000 points and lost more than ten percent from the high of around 14,700 points eight days earlier. The fall in prices last week was due to the fact that the Swiss also announced a large interest rate hike after the US Federal Reserve, which made investors nervous.
Individual companies were driven primarily with negative news. Nordex paper fell by just over seven percent. The wind turbine manufacturer, which flew out of SDAX the day before due to delayed data, started 2022 with “surprisingly high losses,” according to dealers. The Adjusted Operating Income Before Equalization Costs (EBITDA), which was positive in the previous year, also fell to the negative side. Nordex had to postpone the presentation of data for the first quarter due to a cybersecurity incident.
The Frankfurt internet broker flatexDEGIRO expects customer activity to decline this year due to recent business events. Shares responded with losses of four percent.
Internet-oriented companies were particularly weak among retail equities. US bank JPMorgan as well as investment bank Oddo BHF addressed rising cost of living and interest rates that will increasingly affect the industry. Therefore, JPMorgan analyst Georgina Johanan lowered its investment grade for the online clothing store ABOUT YOU to “neutral”. The stake lost almost four percent to SDax.
Oddo analyst Andreas Riemann pointed to the increasing risk of earnings warnings at companies like adidas and Zalando, while he was more stubborn with Puma (PUMA SE) and Hugo Boss. While Zalando lost almost three and a half percent as the bottom of Dax, Adidas hardly changed. Puma and Boss gained slightly less than two percent.
The shares of Fuchs Petrolub (FUCHS PETROLUB SE Vz) increased by almost one percent. The lubricant manufacturer intends to acquire its own stake of up to EUR 200 million over about two years, and then retire. The timing of the redemption, which is set to begin shortly, is good: a week ago, the shares fell to their lowest level since 2012.
The euro rose slightly in an overall favorable environment. In the early afternoon the single currency was traded at USD 1.0555, slightly higher than in the morning. The ECB set the reference rate at USD 1.0517 on Monday. On the bond market, the current yield rose from 1.55% on Tuesday. the day before to 1.64 percent The Rex bond index (overall REX price index) fell 0.41 percent to 131.09 points. Bunds futures rose 0.05%. to 143.36 points /ck / men
— Author: Claudia Müller, dpa-AFX —