Investors are not really getting carried away by the surprisingly positive Ifo business climate. Fears of a recession and rising interest rates are dampening the euphoria.
After a strong start to the week with prices in the Dax above 14,200 points, the momentum on the German stock market has waned again. The leading German index gained 0.53 percent to 14,056 points around noon.
The MDax for medium-sized companies rose by 0.49 percent to 29,344 points. The Eurozone leading index EuroStoxx 50 reduced its plus to just 0.1 percent.
Investors remain cautious
Fears of recession, inflation and rising interest rates continue to shape the overall picture. This was not changed by the published Ifo business climate, which showed that the mood in the German economy brightened again in May and was able to recover further from the slump at the beginning of the Ukraine war.
Investors remain cautious, also because the turnaround in interest rates is now taking concrete shape in the euro zone. According to the President of the European Central Bank (ECB), Christine Lagarde, an end to the net asset purchases is to be expected “very early” in the third quarter. This would allow for a first rate hike in July, the French said.
Acquisitions: Siemens Gamesa and Deutsche Euroshop
Takeover plans were the focus on the market. On the one hand, the energy technology group Siemens Energy wants to completely incorporate its Spanish wind power subsidiary Siemens Gamesa and, if successful, take it off the stock exchange. The move no longer surprised market participants, but they see it positively. Siemens Energy initially rose significantly in the MDax, but then turned negative at 0.7 percent. Siemens Gamesa jumped almost six and a half percent in Madrid.
On the other hand, a takeover bid for Deutsche Euroshop catapulted the shares of the real estate group, which specializes in shopping centers, by around 41 percent. The buyer is the investment vehicle Hercules BidCo, behind which is a joint holding company of the financial investor Oaktree and Cura, the family office of the Otto family.
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.
