The German stock market closed in the red on Wednesday. However, the disappointing US inflation figures only acted as an additional burden temporarily.
The German stock market closed in the red on Wednesday. However, the disappointing US inflation figures only acted as an additional burden temporarily.
Immediately after the data, the Dax had dropped by more than two percent, but in late trading it was able to recover almost completely from this shock. Ultimately, the leading index lost 1.16 percent to 12,756.32 points, just a little more than just before the US data. The MDax of medium-sized companies closed down 0.98 percent to 25,503.28 points.
Consumer prices in the world’s largest economy rose 9.1 percent in June, the highest in more than 40 years. The US Federal Reserve is therefore still under pressure to tighten its monetary policy. However, further increases in interest rates could stall the economy and also reduce the attractiveness of equities compared to fixed-income securities such as bonds.
The other leading European exchanges also went downhill. The EuroStoxx 50 fell by around 1.0 percent. The leading indices in Paris and London each lost around 0.7 percent. In New York, the Dow Jones Industrial was down around 0.6 percent at the end of European trading.
In the middle of the week, business figures for companies dominated events on the German market. The special packaging manufacturer Gerresheimer scored well with investors with better-than-expected quarterly figures and confirmed annual targets. The company is also optimistic about the natural gas supply. The shares ended up 3.1 percent higher as the MDax leader.
In the small-cap index SDax, the shares of Auto1 ultimately fell by 3.9 percent after strong fluctuations. The online used car dealer was able to sell more cars in the past quarter than a year earlier, but the momentum compared to the previous quarter slowed down somewhat.
As expected, the online broker Flatexdegiro recorded less business than in the same period of the previous year due to the cooling off of investor interest in the first half of the year. The company confirmed the annual outlook that had already been lowered in June. The papers lost 2.2 percent.
A cooperation with the French carmaker Renault gave the supplier Vitesco a price gain of 1.8 percent. This involves the development of power electronics for electric and hybrid drives. However, German automotive stocks were generally weak in the market environment.
After the US inflation data, the euro briefly fell below the round mark of one US dollar, but recovered noticeably and most recently cost 1.0080 dollars. In the afternoon, the European Central Bank set the reference rate for the euro at $1.0067. The current yield on German Bunds rose from 0.95 percent the previous day to 0.99 percent. The Rex pension index fell by 0.13 percent to 135.64 points. The Bund future gained 0.02 percent to 152.70 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.
