Supported by an inflation rate in the USA that fell more sharply than expected, the German stock market made above-average gains in the middle of the week.
Supported by an inflation rate in the USA that fell more sharply than expected, the German stock market made above-average gains in the middle of the week.
The Dax rose noticeably after the data on Wednesday afternoon and closed not far from its daily high with an increase of 1.23 percent at 13,700.93 points. The MDax of medium-sized companies ultimately gained 2.01 percent to 27,818.28 points.
The other European stock exchanges also went up: the leading eurozone index, the EuroStoxx 50, rose by 0.91 percent to 3749.35 points. The leading French index Cac 40 climbed 0.5 percent and the British FTSE 100 rose 0.3 percent. In New York, the leading US index, the Dow Jones Industrial, rose by 1.6 percent at the end of trading in Europe.
In the United States, the momentum of price increases slowed down more than expected in July. Inflation slowed to 8.5 percent, while economists had expected 8.7 percent. In June, inflation in the world’s largest economy was still 9.1 percent, the highest level in over 40 years.
“There is a good chance that inflation has peaked,” commented portfolio manager Thomas Altmann from QC Partners and sees a possible “turning point”. Although inflation remains high at 8.5 percent, “but for the first time in more than two years, prices are not increasing in a monthly comparison,” and this is the decisive signal. The chance that the US Federal Reserve will raise interest rates in September by only 0.50 percentage points instead of the expected 0.75 has now increased.
The energy company Eon and the chemicals dealer Brenntag presented their figures from the Dax. Both stocks fluctuated between gains and losses over the course of trading. Brenntag ultimately gained 3.3 percent and, according to one retailer, benefited above all from the somewhat more optimistic outlook. Eon, on the other hand, lost 2.3 percent as the Dax tail light.
In the index of medium-sized stocks, the shares of the car rental company Sixt, which have recently been strong, fell by 7.1 percent. According to the market, investors may have been bothered by the fact that Sixt did not set itself higher annual targets for pre-tax earnings in the course of its strong quarterly figures.
Evotec lost 8.3 percent at the end of the MDax following a negative investment assessment by Morgan Stanley. Analyst James Quigley spoke of gloomy prospects for the earnings development of the drug researcher and lowered his investment rating by two notches.
Evonik’s shares rose by 1.4 percent. The specialty chemicals group became somewhat more confident for 2022 after solid quarterly figures and despite the deteriorating economic prospects.
Talanx shares fell by 2.5 percent. Despite further provisions for the consequences of the Ukraine war, the insurance group increased its profit in the past quarter.
According to quarterly reports, the SDax saw the most striking price movements: Jenoptik’s shares rose by 7.8 percent after the technology company had raised its outlook. After strong quarterly figures and a solid order intake, Heidelberger Druckmaschinen jumped up by more than 18 percent as the SDax leader. In contrast, Secunet fell by 8.8 percent. Compared to the record values from the previous year, the operating result of the IT security service provider fell significantly in the first half of the year.
Kontron (formerly S&T) shares rose 9.2 percent. The Austrian IT service provider has found a buyer for most of the IT service business. The buyer is the French energy and infrastructure group Vinci. The transaction value is around 400 million euros. Kontron also specified the annual goals and announced that it had found a new CFO.
The euro surged after US consumer prices and was last traded at $1.0328. The European Central Bank set the reference rate at $1.0252 in the afternoon.
On the bond market, the current yield fell from 0.80 percent on the previous day to 0.78 percent. The Rex pension index rose by 0.36 percent to 136.86 points. The Bund future turned positive after the US data and most recently gained 0.28 percent to 156.76 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.
