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FRANKFURT (dpa-AFX) – Dax (DAX 40) continued to fall on Thursday. Investors were holding back the forthcoming quarterly data from large US banks. Around noon the leading German index lost 0.71 percent. to 12,665.17 points. MDAX for Midsize Companies fell by 0.75 percent. to 25 313.05 points. The euro area leading EuroStoxx 50 index (EURO STOXX 50) fell 0.92 percent to 3,422.13 points.
A day earlier, Dax reacted negatively to the data on still extremely high inflation in the US, but held the losses until the end of the trade. The American stock exchanges also recorded a similar development. They are holding up quite well despite bond markets increasingly price in economic downturn, market analyst Michael Hewson of CMC Markets UK said. Stock markets have a hard time finding direction. That the European Commission is expecting record high inflation in 2022 due to high energy prices Eurozone expected, also did not create a shopping mood, even if Dax did not react to the news in a recognizable manner.
Hewson now sees the reaction to the US JPMorgan (JPMorgan ChaseCo) data as an important sentiment test. Competitor Morgan Stanley also reports on the development of his business. Other industry giants will present their periodic reports on Friday, including Citigroup and Wells Fargo (Wells FargoCo).
Shares of Deutsche Telekom (Deutsche Telekom) fell by around 1.5 percent as one of Dax’s biggest losers. The Bonn-based company sells a 51 percent stake in its radio tower business to an investor duo made up of Canadian financial investor Brookfield and US infrastructure investor Digital Bridge. Deutsche Telekom estimated the value of GD Towers at EUR 17.5 billion excluding debt and cash. Previously, higher estimates circulated in the market, according to stockbrokers. Other sector values also fell, making the Stoxx Europe 600 Telecom one of the weakest sector indices in Europe.
The fact that HUGO BOSS now has more confidence after a surprisingly strong full-year second quarter saw the fashion group’s share rise by almost three and a half percent to € 56.14. They were MDax favorites and were on their way, unlike the day before, to overcome the 55 euro resistance zone. The figures and forecasts were highly appreciated by analysts. Michael Kuhn of Deutsche Bank questioned whether the new targets could still be overly cautious. The high end of the new forecast still implies a decline in operating profit in the second half of the year.
The semiconductor shares were also among the winners thanks to encouraging news from Taiwan Semiconductor Manufacturing Company (TSCM). The company, which is one of the world’s largest semiconductor manufacturers, posted surprisingly strong quarterly results and increased its sales prospects. At Dax, Infineon grew by almost one percent, and in MDax, the share of high-tech machinery manufacturer Aixtron (AIXTRON SE) grew by 1.3 percent.
Otherwise, analysts’ comments caused price fluctuations. Some chemical stocks have suffered from a negative industry study by UBS. At Dax, BASF lost almost one percent after a Swiss bank lowered its rating and is now recommending its sale. Quarterly figures from chemical companies are likely to be solid again, but are now quickly fading into the rearview mirror, analyst Andre Stott wrote. The industry is going through a difficult period due to the gas supply crisis and poor consumer sentiment. Stott dropped a buy recommendation for Evonik, after which MDax stake fell by almost two and a half percent.
Construction software provider Nemetschek saw prices drop almost three and a half percent. The negative study by Bank of America (Bofa), which followed the observation with a skeptical investment grade “Underperform,” apparently weighed more than the update made by Morgan Stanley.
The adjacent Software AG (Software) index fell 3 percent after Morgan Stanley recommended underweighting the position. The analysts of the American investment bank expect solid quarterly reports from software, IT and fintech companies. The focus should be on outlook statements as they fear a tougher, recessive economic environment for 2023. Responsible analyst Alastair Nolan justified the downgrade of Software AG with the higher price potential of competitors. / Gl / mis
—- Gerold Löhle, dpa-AFX —