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FRANKFURT (dpa-AFX) – Burdened by disappointing business data from the US banking sector and weak Wall Street, the German stock market lost significant losses on Thursday. The fact that the European Commission expects inflation to be record high in 2022 due to high energy prices Eurozone expected also did not create the mood for shopping.
Dax (DAX 40) continued to increase its losses and fell below 12,450 points in late trading. Ultimately, the leading German index lost 1.85 percent. up to 12,519.66 points MDAX for Midsize Companies fell 1.95 percent. up to 25 005.51 points.
Other leading European stock exchanges also recorded clear losses. EuroStoxx 50 (EURO STOXX 50) fell by 1.7 percent. The leading indices in Paris and London fell in a similar range. In New York, the Dow Jones Industrial (Dow Jones 30 Industrial) index fell 1.0 percent at the European close.
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 the billion-dollar share buyback announced in April to meet higher capital requirements. The securities of both houses came under selling pressure.
Deutsche Telekom shares fell by 2.2 percent. 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. Telekom estimated the value of GD Towers at EUR 17.5 billion excluding debt and cash. According to Brsians, higher estimates had been circulating in the market before.
The fact that HUGO BOSS is now more confident after a surprisingly strong full-year second quarter saw the fashion group’s share grow 2.4 percent. This made them one of the biggest MDAX winners. Analysts praised the numbers and prospects. Michael Kuhn of Deutsche Bank questioned whether the new targets could still be overly cautious.
Semiconductor stocks benefited from encouraging news from Taiwan Semiconductor Manufacturing Company (TSMC). The company, which is one of the world’s largest semiconductor manufacturers, posted surprisingly strong quarterly results and raised its sales prospects. In Dax, Infineon, one of the top indexes, lost only 0.6 percent, and in MDax, high-tech machinery manufacturer Aixtron (AIXTRON SE) grew by up to 1.2 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 2.5 percent after a Swiss bank lowered its rating and is now recommending it for sale. 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 lowered its buy recommendation for Evonik, after which MDax stake fell 2.9 percent.
Construction software provider Nemetschek (Nemetschek SE) saw prices fall by seven percent. A negative study by Bank of America, which included an observation with a skeptical investment grade “Underperform,” apparently weighed more than the Morgan Stanley raise. Software AG (Software) was down 3.7 percent after Morgan Stanley rated underweight.
The euro was recently selling for $ 1.0028. In the meantime, it has fallen far below normal. The European Central Bank set the reference rate at USD 1,0005 this afternoon.
The current yield 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 0.36 percent. up to 152.37 points / edh/he
—- Eduard Holetic, dpa-AFX —