The Dax extended its previous day’s losses on Thursday and fell below the 13,000 point mark. The mood on the stock markets remains nervous.
In early trading, the leading German index lost 1.41 percent to 12,958.57 points and fell to its lowest level since March. The MDax for medium-sized stocks fell by 2.30 percent to 26,618.37 points. The Eurozone leading index EuroStoxx 50 lost 1.24 percent to 3421.56 points.
The head of the US Federal Reserve (Fed), Jerome Powell, was unable to calm investors’ nervousness with his speech to the US Senate Banking Committee on Wednesday. On the one hand, he described the US economy as “very strong” and able to cope with interest rate increases. On the other hand, when asked, he admitted that a recession due to higher interest rates was “certainly a possibility”. A so-called “soft landing”, i.e. getting out of the situation without major upheavals, is a challenge.
With regard to the individual stocks on the German market, the focus was primarily on reclassifications, and these related to second- and third-tier companies. JPMorgan downgraded Aroundtown to “Underweight”, which temporarily catapulted the share to the bottom of the MDax at a discount of more than ten percent. Most recently, she gave up eight and a half percent.
Vantage Towers fell nearly 6 percent. The US bank Morgan Stanley’s optimism about the shares of the Vodafone transmission tower subsidiary has given way. Analyst Emmet Kelly downgraded the paper to “equal weight” and lowered the price target from 38 to 32 euros. Measured against the Xetra closing price on Wednesday at EUR 27.54, he still sees a price potential of 16 percent.
Analyst Richard Schramm from the British bank HSBC was now more cautious about Rheinmetall and canceled his buy recommendation for valuation reasons, among other things. He raised the price target from 220 to 240 euros and referred to his high growth expectations for the armaments division of the group. However, he is skeptical about the automotive supply division. The stock lost a little more than five percent.
Salzgitter’s shares remained stable in the SDax. After a critical look by the US bank JPMorgan at the entire European steel industry the day before, including an associated downgrading to “underweight”, they had dropped by 11 percent. Now the US bank Morgan Stanley has spoken out and in turn upgraded the steel manufacturer’s shares from “underweight” to “equal weight”. Salzgitter also increased the forecast again yesterday afternoon.
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.
