Weak economic data from overseas slowed down the recent recovery rally on the German stock market. In view of negative news from China, the Dax slipped quickly after a friendly start.
Weak economic data from overseas slowed down the recent recovery rally on the German stock market. In view of negative news from China, the Dax slipped quickly after a friendly start.
As a result, the leading index fluctuated around its closing level on Friday against the background of equally disappointing US economic data – in the end it managed an increase of 0.15 percent to 13,816.61 points. The MDax of the medium-sized stocks left trading unchanged at 27,908.14 points.
Analyst Konstantin Oldenburger from broker CMC Markets said the weak China data bounced off the market. In view of the decline in the Empire State Index from the USA, Germany’s most important stock index is still doing quite well, added Andreas Lipkow, market observer at Comdirect Bank. According to Oldenburger, the surprising Chinese interest rate cut is causing more concern. “Nevertheless, potential buyers continue to allow only slight profit-taking and are always trying to reposition themselves.”
The Eurozone leading index EuroStoxx 50 went up by 0.34 percent to 3789.62 points. The most important indices in Paris and London also increased moderately. In New York, the leading US index, the Dow Jones Industrial, was minimally negative at the close of the European stock market.
Signs of declining US inflation had given the stock markets a boost in the past few days. However, there are still risks for the markets, while there is a lack of positive price drivers.
Weak economic data in China
Important economic data in China again fell short of expectations in July, a sign of a weakening economy. In order to give the economy new impetus, China’s central bank lowered the interest rate for one-year refinancing transactions with banks for the first time since January.
The data showed that the growth engine in China was losing momentum, said Christian Henke, an analyst at Broker IG. He also noted that energy and commodity prices are still far too high and inflation is still a world away from central bank targets.
In addition, the mood in industrial companies in the US state of New York clouded over surprisingly significantly in August, as the Empire State Index showed. In addition, sentiment on the US housing market deteriorated more than expected in August.
The Rhine level also causes problems
The Rhine level, which continues to fall, is proving to be of little help to the stock market. This threatens restrictions on shipping on the transport route that is so important for the economy. After the dispute about the visit to Taiwan by US top politician Nancy Pelosi about two weeks ago, the visit of another US delegation to Taipei is causing new geopolitical tensions.
In the Dax, the cooking box provider Hellofresh was one of the biggest winners according to the final quarterly figures: the shares gained more than two and a half percent. Experts saw light and shade in the details, but also referred to rather optimistic management statements about the recently lowered annual targets.
At Henkel, after the half-year results and an increased sales forecast, it was ultimately enough for a price increase of half a percent. A number of analysts approved better numbers for the consumer goods group. However, they also put this into perspective with a view to the generally strong results in the industry.
Uniper with four percent profit
Even before the publication of the gas levy, which suppliers can use to pass on higher procurement costs to customers due to the gas throttling from Russia, Uniper’s shares made another attempt to recover. In the end, they gained four percent as one of the best MDax stocks.
According to the final quarterly figures, the shares of the solar and wind park operator Encavis at the top of the MDax went up by five and a half percent. On the other hand, the titles of the IT service provider Adesso recorded losses of more than nine percent, also according to final figures – this meant last place in the SDax small-cap index.
The euro extended pre-weekend losses to last traded at $1.0184. The European Central Bank (ECB) had previously set the reference rate at $1.0195.
On the bond market, the current yield fell from 0.87 percent on Friday to 0.84 percent. The Rex pension index rose by 0.05 percent to 136.38 points. The Bund future gained 0.58 percent to 156.59 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.
