Statements on the development of inflation by US Federal Reserve Chairman Jerome Powell on the previous day also gave the German stock market a boost on Wednesday. The Dax went 0.60 percent higher at 15,412.05 points from trading. The MDax for medium-sized stocks rose by 0.14 percent to 29,218.64 points in the middle of the week. The US stock markets, on the other hand, fell again after their previous day’s gains, which were driven by Powell.
Statements on the development of inflation by US Federal Reserve Chairman Jerome Powell on the previous day also gave the German stock market a boost on Wednesday. The Dax went 0.60 percent higher at 15,412.05 points from trading. The MDax for medium-sized stocks rose by 0.14 percent to 29,218.64 points in the middle of the week. The US stock markets, on the other hand, fell again after their previous day’s gains, which were driven by Powell.
Among other things, the Fed chairman had said that the process of falling inflation had begun, even if it was still at a “very early stage” and further progress was likely to take some time. “Powell had an opportunity to signal a shift to a more aggressive stance and missed it,” said Bill Adams, chief economist at Comerica Bank. In the short term, the Fed will probably take one or two more rate hikes and then wait and see.
The Internet group United Internet floated its web hosting subsidiary Ionos on Wednesday, but was only able to bring in the minimum proceeds: the papers were placed at a price of EUR 18.50 each. The first price on Xetra was even lower. Ultimately, the papers went out of trade at EUR 17.54, which means a minus of 5.2 percent compared to the issue price. United Internet fell by 0.6 percent.
In the Dax, Bayer shares jumped to the top with a plus of six percent. The pharmaceutical and agrochemical group has found a successor for its outgoing CEO Werner Baumann. Bill Anderson is to take over the helm on June 1, as Bayer announced shortly before the stock market closed. The manager is scheduled to join the board on April 1st. Anderson was most recently head of Roche’s pharmaceuticals division.
Eon rose 1.7 percent. The energy company performed better than expected last year, not least thanks to higher revenues from nuclear power.
The VW shares, on the other hand, fell by 1.5 percent as one of the weakest values in the leading index. According to the first key data, Europe’s largest car manufacturer increased profits in ongoing business in 2022, despite the Ukraine war and the energy crisis. However, bottlenecks in the supply of raw materials and ongoing problems in a number of supply chains left their mark. As a result, funds remained tied up in inventories, for example. As a result, the net free cash inflow fell short of management’s target level.
Studies by analysts moved prices, especially in the MDax. Hellofresh topped the index of medium-sized companies with a plus of 6.2 percent despite a canceled buy recommendation from Credit Suisse. After a downgrade of UBS by 3.7 percent, Scout24 almost reached the end of the MDax.
On Wall Street, the Dow Jones Industrial was half a percent lower at the end of European trading. The tech-heavy Nasdaq 100 lost 1.5 percent. The Eurozone leading index EuroStoxx closed unchanged at 4209.15 points. In Paris, the Cac 40 was down 0.2 percent, while in London the FTSE 100 was up 0.3 percent.
The euro stabilized after some significant losses in recent trading days, the common currency was last traded little changed at 1.0733 US dollars. The European Central Bank (ECB) set the reference rate at 1.0735 (Tuesday: 1.0700) dollars. The dollar thus cost 0.9315 (0.9346) euros.
On the bond market, the current yield rose from 2.29 percent on the previous day to 2.35 percent. The Rex pension index fell by 0.14 percent to 125.72 points. The Bund future fell by 0.02 percent to 136.02 points.
Source: Stern
