At the end of the shortened trading week before Easter, the signs on the German stock market point to a recovery. After three days of losses, the Dax climbed by 0.20 percent to 14,104 points in the first hour of trading.
At the end of the shortened trading week before Easter, the signs on the German stock market point to a recovery. After three days of losses, the Dax climbed by 0.20 percent to 14,104 points in the first hour of trading.
The MDax was 0.17 percent higher at 30,458 points, while the Eurozone leading index EuroStoxx 50 recorded an increase of 0.5 percent.
Gains on Wall Street and in Asia provided reasons for a slightly better mood in the morning, although no big bets are expected ahead of the European Central Bank’s (ECB) interest rate decision in the early afternoon.
On Tuesday, the Dax temporarily dropped to a four-week low of 13,887 points, but quickly exceeded the 14,000-point mark again. Little had happened on Wednesday. Because there are no signs of easing in the Ukraine conflict, the willingness to take risks remains low, explained the experts at Helaba.
The most important event on the last day of the trading week is the interest rate meeting of the ECB in the afternoon, which has to react to ever-increasing challenges. Economists expect that the normalization of monetary policy in the euro zone will continue as announced due to high inflation. In view of the high level of uncertainty emanating from the Ukraine war, the ECB is likely to continue to proceed cautiously.
At their March meeting, the central bankers decided to phase out their monthly bond purchases more quickly. A rate hike from a record low of zero percent is increasingly expected towards the end of the year. In contrast, the central banks in the USA and Great Britain have already raised interest rates.
Quarterly figures from other US banks, including Goldman Sachs, Citigroup and Morgan Stanley, could also be interesting in the afternoon. The day before, JPMorgan had opened the number of large investment banks in the United States. The results fell short of expectations, also due to the consequences of Russia’s war of aggression against Ukraine, but caused little movement in the European industry.
On the German stock market, the focus is on the medical and safety technology group Drägerwerk with figures and outlook. Due to increasing difficulties in the delivery of electronic components, only reaching the lower end of the forecast range is to be expected, the Lübeck-based company announced. Investors didn’t like that at all. The titles slipped by 7 percent and were clearly at the bottom of the SDax. One retailer didn’t give the company a good hair: it was simply catastrophic, that’s his verdict. For once, things went well for Drägerwerk during the pandemic, but this phase is now over.
In the first stock market league, the focus was on Delivery Hero shares. They continued their weak week with a minus of two percent. Since the beginning of the year, the food supplier’s shares have lost 70 percent – the worst value in the Dax. However, the industry as a whole is currently in a difficult position. Bank of America has now downgraded Delivery Hero from “Neutral” to “Underperform”.
In the MDax, Lufthansa shares accelerated their recovery from the previous day. With an increase of 2 percent, they were among the best values in the index of medium-sized stocks. They benefited from an industry-wide boost, which also benefited Fraport: Shares in the airport operator were at the top of the MDax with a plus of 2.5 percent. Aviation stocks were helped by low-cost carrier Wizz Air’s outlook for a good quarter.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
