Dax is only moderately up

FRANKFURT The leading German index rose by 0.20 percent to 13,292.40 points and the MDax by 0.11 percent to 27,512.54 points. At the same time, the Dow Jones Industrial index rose 1.8 percent and technology stocks in New York City were even stronger.

“Investors don’t trust Wall Street rally,” said market analyst Jochen Stanzl of the broker CMC Markets. He referred to the painful experience that over the past few weeks, strong US trade had resulted in price declines. The expert assessed the increase in prices in New York as a “short crush”, ie caused by the purchases of investors, who have recently been very one-sided downwards.

Craig Erlam of the Oanda broker is also concerned that the last turbulent weeks on the stock market are not over yet. “The rest of the summer will probably bring even more,” the expert fears. “Everyone’s looking for bottom, but there’s a lot of uncertainty about the prospects,” he said. So far, there are no fundamentally encouraging signs.

The main problems in the markets remain extremely high inflation and the measures taken by global central banks in the form of interest rate hikes. Last week, 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. On the other hand, it is now plus 2.2 percent on three friendly trading days.

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Dax on Tuesday was supported by car values ​​that were friendly in a recovered international stock market environment, as shown by price gains of 1.2 to 1.9 percent at BMW, Mercedes-Benz, Volkswagen and VW Porsche Holding. On the other side of the index, however, they focused on individual companies with negative news.

Bayer shares fell 2.1 percent. Disappointment spread here as the US Supreme Court rejected the Dax group’s request to go to a protracted dispute over alleged cancer risk in herbicides containing glyphosate. The rejection didn’t really come as a surprise, so the initial strong reaction faded over time. Analyst Richard Vosser of the US bank JPMorgan also believes in the short-term damper.

Things were even worse at Fresenius Medical Care (FMC), also due to the US Supreme Court ruling against US competitor Davita. It raises concerns about the level of dialysis revenues for some patients. In Dax, FMC’s stake declined nine percent. This also burdened parent company Fresenius shares almost five percent.

Among German small cap companies, Nordex shares fell by more than seven percent. In the generally weak environment for energy stocks, investors were particularly concerned about the dim key figures for the first quarter with a recorded dip into the operating loss zone. Newspapers that recently dropped from SDax lost as much as 13 percent at the top.

The topic of the conversation was also the Internet broker Flatexdegiro, which, due to the development of business, expects a decrease in customer activity this year. However, this share still relativized the significant losses to minus 1.5%. Analyst Charles Mayne has significantly lowered the target price from € 32 to € 20, but still sees the potential to double.

In an overall favorable environment, the euro has appreciated somewhat. Recently, the single currency cost $ 1.0549. Meanwhile, the European Central Bank set the reference rate at $ 1.0550 (Monday: 1.0517).

On the bond market, the current yield rose from 1.55% on Tuesday. the day before to 1.64 percent The Rex retirement rate fell 0.41 percent to 131.09 points. Future Bund increased by 0.03 percent. up to 143.33 points / tih/mis

— Author: Timo Hausdorf, dpa-AFX —

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