On Wednesday, the Dax accelerated its recovery from the price slide in mid-December. Hopes for a further easing of inflationary pressure gave impetus. The leading German index closed 2.18 percent up at 14,490.78 points and thus recorded the third day of profits in a row. The MDax for medium-sized companies went up 2.05 percent to 26,447.85 points.
On Wednesday, the Dax accelerated its recovery from the price slide in mid-December. Hopes for a further easing of inflationary pressure gave impetus. The leading German index closed 2.18 percent up at 14,490.78 points and thus recorded the third day of profits in a row. The MDax for medium-sized companies went up 2.05 percent to 26,447.85 points.
The stock exchanges received tailwind from the trend towards falling interest rates on the capital markets. There have recently been signs of relaxation in view of the high inflation. After the German consumer prices for December published on Tuesday showed a further slowdown in inflation from a high level, the French consumer prices published on Wednesday and German import prices pointed in the same direction. In addition, purchasing managers’ indices from the euro zone were better than expected for the past month.
On the company side, the focus on the German market was on DIC Asset and Grenke from the SDax small-cap index. The leasing specialist did significantly more new business in 2022 than in the previous year, which was still heavily influenced by Corona. The shares fluctuated heavily and closed 0.7 percent up. DIC Asset gained 2.7 percent despite the commercial real estate specialist just barely making the bottom end of its target range for real estate sales last year. The rapid rise in interest rates hit real estate companies in particular hard, as financing costs had skyrocketed.
Real estate values were also in high demand across Europe on Wednesday. The recent fall in inflation dampened concerns that another sharp rise in interest rates would make it even more difficult to refinance real estate. Vonovia shares at the top of the Dax rose by 5.4 percent. In the MDax, TAG Immobilien shares rose by 5.8 percent.
In addition, investors in Europe grabbed bank stocks. In Germany, Deutsche Bank shares in the Dax rose by 5.3 percent. Commerzbank shares had meanwhile reached their highest level since 2018 and closed 2.3 percent higher. If the economy picks up again as hoped, fewer loan defaults could threaten the banks.
The Eurozone leading index EuroStoxx 50 rose by 2.36 percent to 3973.97 points. France’s Cac 40 rose similarly, while London’s FTSE 100 suffered from weakness in heavyweight commodities stocks and rose only modestly. The US leading index Dow Jones Industrial gained 0.8 percent at the end of trading in Europe.
The euro benefited from the positive economic data from the euro zone and rose: The European Central Bank set the reference rate at 1.0599 (Tuesday: 1.0545) dollars. The dollar thus cost 0.9435 (0.9483) euros.
On the bond market, the current yield fell from 2.35 percent on the previous day to 2.29 percent. The Rex pension index rose by 0.03 percent to 125.85 points. The Bund future gained 1.05 percent to 136.54 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.
