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Stock exchange in Frankfurt: Dax continues to search for direction

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Investors in the German stock market maintained their recent caution after the strong start to the year on Wednesday. The Dax was hardly changed in early trading, down 0.03 percent at 15,088.01 points. The MDax for medium-sized companies rose by 0.11 percent to 28,598.71 points. The EuroStoxx 50, the leading index for the eurozone, fell by around 0.2 percent.

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Investors in the German stock market maintained their recent caution after the strong start to the year on Wednesday. The Dax was hardly changed in early trading, down 0.03 percent at 15,088.01 points. The MDax for medium-sized companies rose by 0.11 percent to 28,598.71 points. The EuroStoxx 50, the leading index for the eurozone, fell by around 0.2 percent.

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“So far, the Dax has successfully resisted a major setback. However, there is a lack of positive impulses for a further rise in the price,” explained analyst Thomas Altmann from QC Partners. The announcement of the Ifo index in the morning could provide a breath of fresh air. A week ago, the Dax had reached a high since February 2022 and gained almost 10 percent in the young year.

Among the individual stocks, investors focused on Rheinmetall shares with a price gain of 3.1 percent. They benefited from the emerging large tank alliance for Ukraine and reached a record high of 232 euros.

While the federal government’s approval of the supply of Leopard tanks has only limited direct financial effects on the industrial and defense group, the move would be extremely helpful for investor sentiment towards the stock, a trader said. Because the tanks supplied by Germany and other countries would have to be replaced, which speaks for increasing orders for Rheinmetall.

In contrast, Fresenius shares fell by 0.8 percent. The hospital and medical group faces the problem of high levels of debt in the middle of its strategic review process. Debt is above the target corridor, which is why the financial leeway is not as great “as we would like for full strategic flexibility,” said CFO Sara Hennicken of the “Börsen-Zeitung”. After several profit warnings and problems, Fresenius is in turbulence, especially at its dialysis subsidiary Fresenius Medical Care (FMC).

Jungheinrich’s shares rose by 3.7 percent at the top of the MDax and rose to their highest level since February 2022. The forklift manufacturer is expanding its warehouse automation business with the takeover of the Storage Solutions Group. The purchase is a “great addition” for the forklift manufacturer, commented a broker.

Aroundtown and Grand City Properties responded to downgrades by Société Générale with losses of 5.9 and 1.6 percent respectively. In addition, a downgrade of Deutsche Bank slowed down the good run of the Aixtron shares. They lost 4.8 percent after gaining a good 16 percent so far this year.

Source: Stern

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