On the day of the US interest rate decision, the recently weaker Dax started trading with profits. In the first hour on Xetra, the leading German barometer rose by 0.42 percent to 13,152 points. Hitting the bottom at Dax can still be considered intact, said Jochen Stanzl of the CMC Markets broker. “But as long as future energy supplies to Germany are not regulated, the market will depend on the political drop in the Kremlin,” the analyst says.
Mid-market MDax gained 0.49 percent in early trading to 26,191 points. The Eurozone leading EuroStoxx 50 index was around 0.7 percent higher.
Apart from numerous business data, the evening’s attention will focus on the continuation of interest rate changes by the US Federal Reserve. After a strong step, another interest rate hike by 0.75 percentage points is expected in June. The main interest rate would then be between 2.25 and 2.5 percent, after it was on the zero line a few months ago. Even higher growth by an entire point seems possible. However, several central bankers, including those with a restrictive monetary policy, have expressed their negative stance recently.
The strong Fed’s rate hike has already been fully priced in by the market and therefore should not cause price fluctuations, experts from Helaba wrote in their daily forecasts. The Fed’s communiqué after the decision on interest rates will be rather interesting – whether central bankers continue aggressive measures against inflation, or take into account the deteriorating economic outlook.
The reporting season in Germany is now really gaining momentum. Sporting goods manufacturer Adidas lowered its forecast. The reason for this is slower business recovery in China due to the blockades related to the koruna and expected weaker consumer sentiment elsewhere. Shares fell by 4.3% as the weakest Dax value. Meanwhile, competitive Puma SE raised its sales forecast, but after a positive start, the securities turned out to be negative and amounted to 0.9%.
In addition, the BASF chemistry group, diagnostics specialist and laboratory service provider Qiagen, and automobile manufacturer Mercedes-Benz have raised their targets for 2022. Mercedes-Benz gained 2.3%, Qiagen 1.5%. BASF remained in the black only slightly, here the threatened freezing of gas supplies by Russia is the sword of Damocles.
A stockbroker described Deutsche Bank’s quarterly figures as mixed. He praised the development of wages, but warned against high costs. The papers were just red. Deutsche Börse shares rose by 2.5 percent, also according to quarterly data. The stock exchange operator is gaining a bit more optimism again after the strong result in the second quarter.
Growing demand for maintenance and spare parts also brought engine manufacturer MTU a surprisingly large profit in the second quarter. While demand from the maintenance industry is not growing as strongly as recently expected, MTU believes it is on track to meet its annual targets. Shares still lost 1.8 percent. (dpa)