Despite slightly lower inflation in Germany, the Dax posted heavy losses on Wednesday.
Despite slightly lower inflation in Germany, the Dax posted heavy losses on Wednesday.
However, the 13,000 point mark held. The leading German index ended the day down 1.73 percent at 13,003.35 points. In the previous three trading days, he had embarked on a recovery path. The MDax of medium-sized stocks fell on Wednesday by 2.72 percent to 26,380.85 points. Losses were also posted across Europe.
In the month of June, which was drawing to a close, the fuel discount and the 9-euro ticket had curbed inflation in this country somewhat. Inflation slowed and consumer prices were 7.6 percent above the level of the same month last year. Inflation data were also released in Spain. There, the already rapid rise in prices again accelerated sharply by 10.0 percent and thus more strongly than expected.
Due to the high inflation in the euro region, the European Central Bank (ECB) is therefore under increasing pressure to raise interest rates, possibly even with larger steps. Curbing inflation while avoiding a recession is currently the central banks’ dilemma.
Real estate stocks are suffering from high inflation. The sector index Stoxx Europe 600 Real Estate closed with the largest discount among 20 sectors in Europe. In the Dax, for example, Vonovia lost 2.4 percent and Aroundtown in the MDax 6.5 percent.
The Dax top value was the papers of the German stock exchange with plus 1.0 percent. They benefited from statements made during a capital market event. As expected, the stock exchange operator confirmed its goals for 2022 and 2023 and convinced with details.
Fresenius shares increased by 0.6 percent. The healthcare group is apparently exploring a merger of its clinic business with a competitor. As the news agency Bloomberg reported, citing informed circles, a merger is preferred. A sale to financial investors is not the preferred option.
At the end of the Dax, the stocks of the plastics company Covestro, the agrochemical and pharmaceutical company Bayer and the carmaker Volkswagen each closed with discounts of just over 4 percent.
Among Europe’s stock exchanges, the leading euro zone index, the EuroStoxx 50, ended the day down 0.99 percent to 3514.32 points, and the stock markets in Paris and London also gave way. At the same time, the Wall Street index Dow Jones Industrial and the technology-heavy select index Nasdaq 100 in the USA were slightly up.
The euro slipped below $1.05 and was trading at $1.0472 early in the evening. The ECB set the reference rate at 1.0517 (Tuesday: 1.0561) dollars. The dollar thus cost 0.9508 (0.9469) euros. On the bond market, the current yield fell from 1.51 percent on the previous day to 1.49 percent. The Rex pension index rose by 0.02 percent to 132.01 points. The Bund future gained 1.00 percent to 146.82 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.
