The most recent attempt to stabilize the German stock market was dampened on Wednesday. After three friendly days, the Dax dropped by almost 2.5 percent at times and was below 13,000 points for the first time since March.
The most recent attempt to stabilize the German stock market was dampened on Wednesday. After three friendly days, the Dax dropped by almost 2.5 percent at times and was below 13,000 points for the first time since March.
In the wake of the US stock exchanges, the leading index was able to significantly reduce its minus. From trading, it was down 1.11 percent at 13,144.28 points. The MDax fell by 0.97 percent to 27,246.16 points.
The US stock exchanges, which were initially weak, turned moderately positive with fluctuations. Statements by Fed Chair Jerome Powell, who initially gave no fuel to the current economic concerns in a speech to the Senate Banking Committee, were viewed critically. He stressed that the US economy was strong enough for interest rate hikes and described the rate hikes priced in by the markets as appropriate.
Values such as Eon, Beiersdorf and Deutsche Telekom lived up to their role as relatively defensive investments as positive exceptions in the Dax. They posted increases of between 1.3 and 1.7 percent. The other end of the Dax belonged to the cyclical companies from the auto and chemical sectors.
BASF came last with minus 5.8 percent. According to CEO Martin Brudermüller, after a good first half of the year, the chemical company has to adjust to more difficult times. The direction of the sector was also determined by a share price slump of more than 13 percent at Umicore. The Belgians announced strong investments.
It was also a gloomy day for investors in steel stocks because of a negative industry study by US bank JPMorgan. Prices and profitability have fallen significantly, inventories in Europe and China are quite high and the economic outlook is poor, according to expert Luke Nelson. He is particularly critical of Salzgitter because of its dependence on the car industry, the papers have fallen by eleven percent. An increased outlook from the German steel group could only temporarily counteract this.
In addition to downgrading Salzgitter to “underweight”, Nelson lowered his ratings for several other European steel companies – and so the severe losses spread across the industry. Under these circumstances, the Thyssenkrupp shares, which he did not directly assess, also lost eight percent in value as the biggest MDax loser.
On the European stage, the EuroStoxx 50 lost 0.84 percent to 3464.64 points. The leading indices in Paris and London also suffered similarly high price losses. In New York, the Dow Jones Industrial was slightly up at the close of trading here, but lost some feathers again in the minutes that followed.
The euro was last seen at $1.0585 after falling below the $1.05 mark in the morning. The European Central Bank set the reference rate at 1.0521 (Tuesday: 1.0550) dollars.
On the German bond market, prices began to recover, while the current yield fell from 1.64 percent on the previous day to 1.60 percent. The Rex pension index rose by 0.33 percent to 131.51 points. The Bund future rose significantly by 1.19 percent to 145.08 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.
