The third sharp rise in key interest rates in the United States in a row and the gloomy statements by the US Federal Reserve Bank on further development weighed on the German stock market at the start of trading.
The third sharp rise in key interest rates in the United States in a row and the gloomy statements by the US Federal Reserve Bank on further development weighed on the German stock market at the start of trading.
The leading index Dax fell in early trading by up to 1.88 percent to 15,526 points, but was able to quickly limit the losses recently. About three quarters of an hour after the start of trading, it lost 0.46 percent to 12,707 points. The Eurozone selection index EuroStoxx followed the Dax down at roughly the same pace. The MDax recently fell by 1.09 percent to 23,648 points, after previously slipping by up to 2.29 percent to 23,360 points, its lowest level since May 2020. The SDax fell 1.91 percent to 11,065 points.
With the sharp drop in price at the start of trading on Thursday, the Dax is about to test the 12,500 point mark again, which had already served as support in March and July. At the beginning of July, the Dax fell well below this mark at times and slipped to its low for the year of 12,390 points. This could now come back into focus. So far, however, it looks as if the mark of 12,500 points will hold. Because of the war in Ukraine, the high inflation, the resulting sharp rise in key interest rates and fears of a recession, the Dax has lost more than a fifth in the course of the year so far.
After the Fed’s decision to raise interest rates by 0.75 percentage points for the third time in a row, the US stock market is sending out clearly negative signals. On Wall Street, the most important indices had already fallen to new lows since July on Wednesday evening.
Monetary policy will continue to be in focus throughout the trading day. The decision of the British central bank (BoE) is expected at 1 p.m. In terms of individual values, the utility Uniper should again be in focus after the announcement of the nationalization on Wednesday. The shares of the company, which was spun off from Eon in 2016, lost a quarter of their value to EUR 3.12 each yesterday, after they had even fallen by almost 40 percent to EUR 2.55 at their peak. On Thursday, the price fell by around 3 percent to just over 3 euros.
In the case of the individual values, the figures and the outlook of the software manufacturer Suse caused a sensation. The papers listed in the SDax lost a good 33 percent to EUR 12.16, mainly because of the reduced order forecast, and were therefore cheaper than ever. The shares of the Nuremberg company, which have been listed on the stock exchange since May 2021, have already lost significantly in value this year before the price slide on Thursday. At the beginning of the year, the price was still more than 40 euros.
There were hardly any winners in the Dax at the start of trading – some values are now up. The fragrance and flavoring manufacturer Symrise led the Dax field with a premium of around one percent. Shares in Deutsche Boerse, which is benefiting from both market turbulence and higher interest rates, were once again among the winners. The value is the strongest DAX title so far this year with a plus of 15 percent. The online clothing retailer Zalando was one of the strongest Dax losers on Thursday. Its shares recently lost around two and a half percent to 20.80 euros.
The reason for the Zalando losses was a downgrade of the competitor About You. Nizla Naizer, analyst at Deutsche Bank Research, downgraded the stock from “buy” to “hold” on Thursday and lowered the target price from 19 to 9 euros. She justified the step with a difficult environment. The ever-worsening consumer sentiment is particularly noticeable in the fashion sector. The About You share, which has been listed on the stock exchange since the summer of 2021, fell in early trading by up to almost 5 percent to a record low of EUR 5.14, but has recently recovered somewhat.
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.
