The Dax held its ground on Tuesday despite a monetary policy surprise. After early losses of a good one percent, the leading German index caught up and was still 0.42 percent down at 13,884.66 points. At 24,962.50 points, the MDax of medium-sized stocks was able to contain its discount to 0.25 percent.
The Dax held its ground on Tuesday despite a monetary policy surprise. After early losses of a good one percent, the leading German index caught up and was still 0.42 percent down at 13,884.66 points. At 24,962.50 points, the MDax of medium-sized stocks was able to contain its discount to 0.25 percent.
With their restrictive monetary policy stance, the central banks have the stock markets under control: After the American Fed and the European Central Bank last week, the Japanese central bank caused the next mood dampener on Tuesday. She decided to loosen the range in which the long-term bond yield moves. This was seen by the markets as the first step towards a slight tightening of the monetary reins.
The news buoyed bank stocks and added pressure on real estate values. Deutsche Bank and Commerzbank took first place in their respective indices with price gains of almost six and a good nine percent respectively. Vonovia shares, on the other hand, lost 2.8 percent.
Rheinmetall titles continued to suffer from the problems with the “Puma” infantry fighting vehicle, down 2.8 percent. Defense Minister Christine Lambrecht reiterated her demand for speedy repairs to the combat vehicle that failed during exercises and threatened that otherwise it would no longer be used.
The shares of fashion manufacturer Hugo Boss rose by two percent after a buy recommendation from Deutsche Bank. The shares of the pump manufacturer Pfeiffer Vacuum went up by 1.7 percent after the sales forecast was raised.
The euro continued to stabilize, rising to $1.0630. The ECB had set the reference rate at $1.0599. The Japanese central bank’s action on Tuesday caused the yen to rise against both the dollar and the euro.
On the bond market, the current yield increased from 2.16 percent on the previous day to 2.25 percent. In contrast, the Rex pension index fell by 0.29 percent to 126.62 points. The Bund future lost 0.93 percent to 135.92 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.
