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FRANKFURT (dpa-AFX) – Dax (DAX 40) increased its losses on Thursday after disappointing business data from the US banking sector and hit the daily low. Recently, the leading German index was 1.61 percent lower at 12,551.52 points. The day before, it clearly negatively reacted to the data on still extremely high inflation in the US, but held the losses until the end of the trade. That the European Commission expects inflation to be record high 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.
MDAX for Midsize Companies fell 1.59 percent on Thursday afternoon. to 25,097 points. The euro area leading EuroStoxx 50 index (EURO STOXX 50) fell by 1.64% to 3,397.49 points.
The largest US bank JPMorgan (JPMorgan ChaseCo), like its competitor Morgan Stanley, saw a surprisingly sharp drop in earnings in the second quarter. JPMorgan also suspended a multi-billion dollar buyout of its own shares announced in April to meet higher capital requirements. The securities of both houses were under pressure in the market at that time.
JPMorgan’s figures in particular left their mark on Deutsche Bank (Deutsche Bank), though the pressure was limited: shares in Germany’s largest financial institution have lost around one percent recently and continue to do better than the market.
Shares of Deutsche Telekom (Deutsche Telekom) fell 2.7 percent as one of Dax’s biggest losers. The Bonn-based company sells 51 percent of its radio tower business to an investor duo consisting of Canadian financial investor Brookfield and US infrastructure investor Digital Bridge. Deutsche Telekom estimated the value of GD Towers at 17.5 billion euros excluding debt and cash. Previously, higher estimates circulated in the market, according to stockbrokers.
The fact that HUGO BOSS is now more confident after a surprisingly strong second quarter full year saw the fashion group’s share rise by almost three percent to € 55.94. They were one of MDax’s 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 might still be too 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. In Dax, Infineon as a leader fell only moderately, and in MDax, the share of high-tech machinery manufacturer Aixtron (AIXTRON SE) increased by more than half a percent.
Otherwise, analysts’ comments caused price fluctuations. Some chemical stocks have suffered as a result of a negative industry survey by UBS. At Dax, BASF lost almost two and a half percent after the Swiss bank lowered its rating and is now advising to sell it. Quarterly figures from chemical companies are likely to be solid again, but they will quickly fade 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 more than three percent.
Construction software provider Nemetschek (Nemetschek SE) saw prices fall by around four and a half percent. A negative study by Bank of America, which accepted the observation with a skeptical investment grade “Underperform,” apparently outweighed Morgan Stanley’s upgrade.
The adjacent Software AG (Software) index fell more than 4 percent after Morgan Stanley recommended underweight. The analysts of the American investment bank expect solid quarterly reports from software, IT and fintech companies. The focus should be on statements on the outlook, in 2023 they fear a more difficult, recessive economic environment. Responsible analyst Alastair Nolan justified the downgrade of Software AG with the higher price potential of competitors.
The euro recently cost US $ 1,0005. The day before, the European Central Bank set the reference rate at USD 1.0067. The current profitability of the German Bunds rose from 0.99%. the previous day to 1.09 percent. The Rex bond index (overall REX price index) fell 0.62 percent to 134.80 points. The future of the Bund lost 0.81 percent. up to 151.68 pts./gl/jha/
—- Gerold Löhle, dpa-AFX —