The German stock market was relatively quiet on Thursday before the start of the central bankers’ meeting in Jackson Hole. The Dax closed with moderate gains thanks to friendly US stock exchanges.
The German stock market was relatively quiet on Thursday before the start of the central bankers’ meeting in Jackson Hole. The Dax closed with moderate gains thanks to friendly US stock exchanges.
However, the leading German index lacked a clear direction in the course of trading. Although positive economic news from Germany and China ensured a lively start to trading, the momentum waned over the course of the year. Moderate losses were posted at times. Ultimately, the leading German index went out with a premium of 0.39 percent to 13,271.96 points.
The MDax for medium-sized companies gained 0.05 percent to 26,070.64 points. Across Europe, the trend was also mostly upwards. The Eurozone leading index EuroStoxx 50 gained 0.19 percent to 3674.54 points. In the USA, the majority of the most important indices were also in positive territory at the close of the European stock market. Only the Dow Jones Industrial Wall Street index held up at the previous day’s close.
Positive mood
In the morning, China’s announcement of further billions in aid to stabilize its flagging economy also created a positive mood in Germany. It was also surprising that the German economy grew slightly in the second quarter. On the other hand, the Ifo business climate index for August, which was also better than expected, provided little support. “The positive reading is that the Ifo index is falling more slowly than before,” wrote Carsten Brzeski, chief economist at ING Bank. “The negative reading is obviously that there is no improvement in sight. The list of arguments why the German economy is slipping into recession is getting longer and longer. The question is not whether the recession will come, but how severe and long it will be .”
Investors eagerly awaited the start of the multi-day conference in Jackson Hole, Wyoming. Fed Chair Jerome Powell’s speech on Friday will be the center of attention. It is hoped that there will be indications of the next interest rate hike in the USA in September. The current US inflation data continue to put great pressure on the Fed to act, the analysts at NordLB wrote.
individual stocks
In the Dax, Munich Re shares gained 1.5 percent according to an optimistic industry study. Defensive balance sheets support reinsurers’ cash flows and give investors security in times of rising recession risks, according to analysis firm Keefe, Bruyette & Woods.
Siemens Healthineers led the index with a plus of 2.1 percent. UBS analyst Graham Doyle now recommends buying the share, citing the recent price decline, the medical technology group’s relatively low-risk prospects for 2023 and its resilience to a recession.
At the top of the MDax, the K+S shares rose by 7.6 percent and thus benefited from the expectation of rising fertilizer prices. The US bank Citigroup pointed out that around ten percent of the capacity was currently missing in a tight market.
Uniper fell by 7.1 percent, almost reaching its record low of 5.64 euros, which was recorded at the end of July. Concerns that the state aid that had been decided on might not be sufficient in view of the rising gas prices continued to spread. There was also a freshly issued sell recommendation for the shares by Citigroup.
The paper of the commercial real estate specialist Aroundtown went down by 1.1 percent. In the first half of the year, the company got a boost thanks to its residential real estate subsidiary Grand City Properties. Nevertheless: The current environment of rising interest rates is not favorable for real estate values. Financing conditions can deteriorate. In addition, if demand for housing falls, there is also a risk that real estate prices will fall.
The euro was trading at $0.9963 early in the evening. The European Central Bank set the reference rate at 0.9970 (Wednesday: 0.9934) dollars. The dollar thus cost 1.0030 (1.0066) euros.
On the bond market, the current yield rose from 1.19 percent on the previous day to 1.21 percent. The Rex pension index fell by 0.01 percent to 133.66 points. The Bund future rose by 0.47 percent to 151.01 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.
