The Dax initially continued its good run in the still young stock market year 2023 at the beginning of the third trading week. In the first hour on Xetra, the leading German index gained 0.16 percent to 15,110.70 points on Monday. The MDax for medium-sized German companies rose by 0.22 percent to 28,315.15 points at the beginning of the week. The EuroStoxx 50, the leading index in the euro zone, rose by 0.1 percent. Impulses are likely to remain rather rare on Monday: the agenda in Germany does not give much. In addition, there is no trading in New York due to a holiday.
The Dax initially continued its good run in the still young stock market year 2023 at the beginning of the third trading week. In the first hour on Xetra, the leading German index gained 0.16 percent to 15,110.70 points on Monday. The MDax for medium-sized German companies rose by 0.22 percent to 28,315.15 points at the beginning of the week. The EuroStoxx 50, the leading index in the euro zone, rose by 0.1 percent. Impulses are likely to remain rather rare on Monday: the agenda in Germany does not give much. In addition, there is no trading in New York due to a holiday.
The Dax is now back to the level it was shortly before the Russian invasion of Ukraine at the end of February 2022. However, the significant price increase of currently 8.5 percent since the beginning of the year also harbors risks. The risk of a correction increases if such an increase occurs within a short period of time, the Helaba experts wrote in their daily outlook. In addition, a lot of positive things are already included in the courses. Although concerns about the economy are diminishing and there is speculation that the central banks will soon end the cycle of interest rate hikes, this will only go together if inflationary pressure eases significantly and permanently.
The focus on the market is on the Covestro shares with discounts of 0.9 percent, which clearly reduced their high pre-market minus. High depreciation tore the plastics group surprisingly into the red last year. Analyst Chetan Udeshi from JPMorgan now expects another sharp correction in market expectations and a cancellation of the dividend.
Airbus also fell by 0.9 percent. The Berenberg Bank downgraded the stake in the aircraft manufacturer from “buy” to “hold” and lowered the price target from 150 to 120 euros. The consequences of high inflation weighed on profit margins in 2023, wrote analyst Philip Buller. In addition, there are still some supply bottlenecks for preliminary products.
In the SDax, the shares of the financial service provider Hypoport gained 5.5 percent based on transaction figures. According to statements about 2022 and an outlook for 2023, the shares of the IT service provider Kontron went up by 5.4 percent. DWS increased by 2.1 percent, and Jefferies now advises buying the paper from Deutsche Bank’s fund subsidiary.
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.
