A sharper fall in inflation in the US than expected pushed the Dax towards 14,700 points on Tuesday. At times, the leading German index reached its highest level since the beginning of June. In the end, it closed with a premium of 1.34 percent to 14,497.89 points. The MDax brought it up by 2.08 percent to 26,018.29 points.
A sharper fall in inflation in the US than expected pushed the Dax towards 14,700 points on Tuesday. At times, the leading German index reached its highest level since the beginning of June. In the end, it closed with a premium of 1.34 percent to 14,497.89 points. The MDax brought it up by 2.08 percent to 26,018.29 points.
The Eurozone leading index EuroStoxx 50 advanced by 1.66 percent to 3986.83 points, and things also went up in Paris and London. In New York, the Dow Jones Industrial gained 0.4 percent at the close in Europe, and the technology-heavy Nasdaq stock exchanges rose more significantly.
“The inflation data from the USA for the month of November turned fear into relief on the stock exchange and catapulted share prices upwards,” market analyst Konstantin Oldenburger from CMC Markets summarized the rally. Consumer prices fell for the fifth straight month, “raising hopes that the worst of inflation is behind investors.”
The data also fueled expectations that the US Federal Reserve would take its fast pace out of interest rate hikes this year, Oldenburger said. In the past nine months, Jerome Powell has raised interest rates at the fastest rate since the 1980s. This weighed heavily on technology stocks in particular, as they react particularly sensitively to changes in monetary policy.
No wonder that the momentum for this industry was particularly strong. In Germany, online stocks such as Zalando in the Dax, Delivery Hero and Hellofresh in the MDax and About You in the SDax shot up. Gains of up to 9.5 percent were recorded.
Lufthansa caused a stir after significantly raising its operating profit target for 2022 for the third time this year. In view of the further recovery in ticket demand, adjusted earnings before interest and taxes are now expected to reach around 1.5 billion euros. Investors responded enthusiastically. The stock jumped to a 15-month high.
After an upgrade by the major Swiss bank UBS, the papers from Wacker Chemie went up by 5.3 percent. The expert Andrew Stott based his buy recommendation for the specialty chemicals group in a sector study on the recent below-average price development of the share, among other things. In addition, Wacker could benefit from the political efforts in terms of energy transition.
The euro rose sharply after the US inflation data and was trading at $1.0631 in the early evening. The European Central Bank had previously set the reference rate at 1.0545 (Monday: 1.0562) dollars. The dollar thus cost 0.9483 (0.9468) euros. On the bond market, the current yield rose from 1.85 percent on Monday to 1.89 percent. The Rex pension index fell by 0.07 percent to 127.89 points. The Bund future rose by 0.33 percent to 140.60 points in the evening.
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.
