Dax gives up most of its profits – Wall Street weighs in | Free press

Frankfurt am Main.

On Tuesday, Dax posted gains for the third day in a row. But as at the beginning of the week, the plus dropped significantly during the day and thus tracked the ups and downs on the US stock exchanges. Nevertheless, the fact that China relaxed its strict quarantine laws on entry had a positive impact.

Market traders hope that the heavy burden on the Chinese economy will ease somewhat, with positive repercussions for the global economy.

Collapse of profit at trade close

The leading German index ended the day with a slight plus of 0.35 percent. to 13,231.82 points, after approaching the previous day’s high at the beginning of the day, which was slightly below 13,380 points. The MDax of the midsize equities fell 0.13 percent to 27,119.15 points.

Gains were recorded across Europe, but they also came together towards the end of the trade. The leading Eurozone index, the EuroStoxx 50, closed 0.29 percent to 3,549.29 points, with Paris and London rising as well. In contrast, in the US, the Dow Jones Industrial Wall Street index fell to red shortly before the market close in that country. The technologically advanced Nasdaq indices began to lose negative values ​​after a friendly start.

Statements by central bankers at the European Central Bank’s (ECB’s) annual monetary policy symposium, this time held in Portugal, made people sit back and pay attention. According to Martins Kazaks, a member of the ECB’s Governing Council from Latvia, a 0.5 percentage point increase in interest rates should be considered in July. In addition, ECB president Christine Lagarde said the ECB could increase the pace of monetary policy normalization in the coming months given persistently high inflation.

aviation industry wanted

Aviation stocks enjoyed great interest due to the blockade of China and resurgent tourism. In addition, JPMorgan analyst David Perry referred to new forecasts by the airline umbrella organization (IATA) that appeared optimistic. According to Perry, if Asian pandemic mitigation progresses faster than expected, aviation suppliers could raise their earnings forecasts.

In Dax, the shares of the engine manufacturer MTU gained 3.5%, and Airbus 1.7%. In MDax, shares in the operator of Fraport airport increased by 1.4%, and in Lufthansa by 0.9%. The airline is also re-launching the wide-body Airbus A380 in response to soaring demand for airline tickets.

The actions of sports goods producers Adidas and Puma were visible after quarterly data and statements on the further development of the business of the American competitor Nike. Adidas lost 0.9 percent and Puma 2.2 percent. Nike earned significantly less in the last fourth business quarter as China’s Covid blockades had a negative impact. Some analysts call Nike’s 2022/23 forecasts “cautious”, others consider them “conservative.”

Hugo Boss wins

A buy recommendation for Hugo Boss issued by the analytical company Jefferies brought the producer’s share prices up by 1.6%. Social media data showed the brand deteriorated after rebooting, analyst Kathryn Parker wrote. Annual targets are already conservative. Following a rebound in the operating results forecast for the fiscal year to end-June, biofuel producer Verbio’s shares rose by just over € 50. After all, they went on sale with a plus of 1.3 percent to 46.88 euros.

In the early evening the euro was traded at USD 1.0534. The ECB set the reference rate at USD 1.0561 in the afternoon (Monday: USD 1.0572). The dollar thus cost 0.9469 (0.9459) euro. On the bond market, the current yield increased from 1.40%. the day before to 1.51 percent The Rex retirement rate fell 0.43 percent to 131.98 points. The future of the Bund fell by 0.79 percent in the evening. up to 145.25 points (dpa)

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