The Dax remained on a stabilization course for the third trading day in a row. While the US stock exchanges made a strong comeback after a holiday and thus caught up with the positive start to the week on other stock exchanges, the increase in Frankfurt was only moderate.
The Dax remained on a stabilization course for the third trading day in a row. While the US stock exchanges made a strong comeback after a holiday and thus caught up with the positive start to the week on other stock exchanges, the increase in Frankfurt was only moderate.
The leading German index was 0.20 percent higher at 13,292.40 points, the MDax gained 0.11 percent at 27,512.54 points. At the same time, the Dow Jones Industrial was up 1.8 percent and New York’s technology stocks were even stronger.
“Investors don’t trust the rally on Wall Street,” said market analyst Jochen Stanzl from broker CMC Markets. He referred to the painful experience that strong US trading starts in the past few weeks have subsequently resulted in price losses. The expert rated the New York price rally as a “short squeeze”, i.e. driven by purchases by investors who have recently been very one-sidedly downward-oriented.
Craig Erlam from broker Oanda also fears that the recent turbulent weeks on the stock market are not over yet. “The rest of the summer will probably bring more of it,” fears the expert. “Everyone is looking for the bottom, but the prospects are fraught with great uncertainty,” he said. So far, there are no fundamentally encouraging signs.
The main topics on the markets remain the immensely high inflation and countermeasures by the global central banks with interest rate hikes. A support for the Dax on Tuesday were the car values, which were friendly in the recovered international stock market environment, as price gains of between 1.2 and 1.9 percent at BMW, Mercedes-Benz, Volkswagen and the VW-Holding Porsche showed. On the other side of the index, however, individual companies with negative news came into focus.
Bayer shares fell 2.1 percent. Disappointment spread here because the US Supreme Court rejected an application by the Dax group to hear a case in the protracted dispute about alleged cancer risks of weed killers containing glyphosate. The rejection didn’t really come as a surprise, so the initial strong reaction subsided over time.
Things were even bleaker at Fresenius Medical Care (FMC), also because of a US Supreme Court decision against US competitor Davita. It raises concerns about the level of revenue from dialysis services for certain patients. In the Dax, FMC’s shares fell by nine percent. This also weighed on the shares of the parent company Fresenius by almost five percent.
Among the German small caps, Nordex shares fell by more than seven percent. In a generally weak environment for energy stocks, investors were particularly unsettled by murky key data for the first quarter with a reported slip into the operating loss zone. The papers recently relegated from the SDax had even lost 13 percent at the top.
The online broker Flatexdegiro was also a topic of conversation, which, in view of the latest business development, expects customer activity to decline this year. However, the share still relativized significant losses at times to a minus of 1.5 percent. Analyst Charles Mayne cut his price target significantly from 32 to 20 euros, but still sees potential for doubling.
The euro appreciated somewhat in an overall friendly environment. Most recently, the common currency cost 1.0549 US dollars. The European Central Bank had meanwhile set the reference rate at 1.0550 (Monday: 1.0517) dollars.
On the bond market, the current yield rose on Tuesday from 1.55 percent the day before to 1.64 percent. The Rex pension index fell by 0.41 percent to 131.09 points. The Bund future rose by 0.03 percent to 143.33 points.
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.
