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FRANKFURT (dpa-AFX) – Dax (DAX 40) stayed on the stabilization course for the third day in a row on Tuesday. While the US stock markets strongly returned after the holiday and thus caught up with the positive start of the week on other stock exchanges, the Frankfurt plus was only moderate.
The leading German index rose 0.20 percent to 13,292.40 points and the MDAX rose 0.11 percent to 27,512.54 points. At the same time, the Dow Jones Industrial (Dow Jones 30 Industrial) index rose 1.8 percent and New York tech stocks 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 drops. The expert assessed the rise in prices in New York as a “short squeeze”, ie caused by the reach of investors, who were recently very one-sided downward.
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 is looking for bottom, but the prospects are burdened with great uncertainty,” he emphasized. 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. This contrasts with an increase of 2.2 percent over the three friendly trading days.
Support for Dax on Tuesday was auto stocks that were friendly in a lively international stock market environment, such as price increases of 1.2 to 1.9 percent in BMW, Mercedes-Benz (Mercedes-Benz Group (ex Daimler)), Volkswagen Shown (Volkswagen (VW) vz) and VW (Volkswagen (VW) vz) from Porsche. 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 a request by the Dax group (DAX 40) to hear the case in a protracted dispute over alleged cancer risk from 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 a short-term failure.
Things were even gloomier at Fresenius Medical Care (FMC) (Fresenius Medical Care), also because of a US Supreme Court ruling, albeit against US competitor Davicie. It raises concerns about the level of dialysis revenues for some patients. In Dax, FMC’s stake declined nine percent. This, too, weighed down almost five percent of parent company Fresenius (Fresenius SECo).
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 dim first-quarter key data with a recorded slide into the operating loss zone. Shares that recently fell from SDax lost as much as 13 percent at their peak.
The topics for discussion were also provided by the flatexDEGIRO internet broker, 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 bond index (overall REX price index) fell 0.41 percent to 131.09 points. The future of the Bund increased by 0.03 percent. up to 143.33 points / tih/mis
— Author: Timo Hausdorf, dpa-AFX —