The uncertainty after the important midterm elections in the USA slowed down the recovery rally in the Dax. The leading German index fell by 0.48 percent to 13,622.84 points in the early afternoon on Wednesday, after having reached its highest level since mid-August the day before.
The uncertainty after the important midterm elections in the USA slowed down the recovery rally in the Dax. The leading German index fell by 0.48 percent to 13,622.84 points in the early afternoon on Wednesday, after having reached its highest level since mid-August the day before.
The MDax for medium-sized companies lost 1.07 percent to 24,217.44 points. The Eurozone leading index EuroStoxx 50 recently fell by 0.51 percent.
“Markets appreciate certainty, but that’s not there yet when it comes to midterms,” commented Konstantin Oldenburger, analyst at CMC Markets, referring to the US elections in the middle of President Joe Biden’s four-year term. It is currently still unclear which party will have the say in Congress in the future. A recently predicted overwhelming victory for the Republicans has not yet emerged, despite some successes.
With a view to the statistics, the market expert encouraged investors: “In the past, the midterms set the course for further course development, and this was mostly positive. If you look twelve months ahead, the US stock exchanges could, after the last 19 midterm elections since by around 15 percent on average after the Second World War.”
In the uncertain situation, investors in Germany avoided chemical stocks that were sensitive to the economy. BASF, Bayer and Covestro lost between 2.1 and 4.7 percent.
Investors’ uncertainty was also reflected in the sometimes significant price fluctuations of individual stocks. After a weak start, securities from Siemens Healthineers had turned positive by almost 4.8 percent, of which 3.1 percent currently remain. The medical technology group assumes that business will weaken in the fiscal year that started in October and expects adjusted earnings per share to fall and comparable sales to almost stagnate. Analysts remained calm in the first reactions.
At Adidas, too, investors processed another mood dampener well. Because the partnership with the rapper Kanye West and his brand Yeezy has since ended, the Herzogenaurach-based company had to cut its sales forecast again. However, this did not detract from the recent joy of stock market traders about the new CEO who is leaving Puma – after initial losses, they expanded their recovery by 2.6 percent.
Many other companies also presented business figures – including Bilfinger, which collapsed by almost 14 percent. The industrial service provider was burdened by the costs of its savings program.
Vantage Towers shares have jumped around 12 percent, approaching their March record high. The telecom group Vodafone is bringing its stake in its radio tower subsidiary into a joint venture with the financial investors GIP and KKR.
The euro was trading at $1.0027 in the early afternoon. The European Central Bank set the reference rate at $0.9996 (Monday: $0.9993) on Tuesday. The dollar thus cost 1.0004 (1.0007) euros.
On the bond market, the current yield fell from 2.27 percent on the previous day to 2.20 percent. The Rex pension index rose by 0.23 percent to 126.71 points. The Bund future rose by 0.15 percent to 137.26 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.
