The Dax increased on Tuesday after the long Easter weekend. However, the gains crumbled noticeably in the course of trading, after it had remained just below the recently reached highest level since January 2022 right from the start.
The Dax increased on Tuesday after the long Easter weekend. However, the gains crumbled noticeably in the course of trading, after it had remained just below the recently reached highest level since January 2022 right from the start.
At the close of the market, the leading German index was up 0.37 percent to 15,655.17 points. The MDax of medium-sized stocks closed 0.92 percent higher at 27,449.84 points.
In Europe, too, profits melted off somewhat: the leading euro zone index, the EuroStoxx 50, ultimately claimed a price increase of 0.57 percent to 4333.29 points. Things also went up in Paris and London. In New York, the leading US index Dow Jones Industrial was 0.32 percent higher at the end of European trading, while the technology-heavy Nasdaq 100 fell by 0.70 percent.
US inflation data as price driver
Analyst Konstantin Oldenburger from broker CMC Markets sees the upward trend in the Dax as intact. “The seasonally strong stock market month of April could also ensure satisfied faces on the Frankfurt Stock Exchange this year,” he hopes. In order to “ennoble” the current rally, the leading German index must defend its high level and dare to break out – “then the psychological barrier of 16,000 (points) would be the next tangible target”. The inflation data from the USA due on Wednesday could prove to be a price driver.
In the Dax, many stocks from the automotive industry showed strength. BMW, Continental, Volkswagen and Mercedes-Benz increased by 1.5 to 2.3 percent.
Automotive suppliers have recently registered the first increase in orders in eleven months, stated chief strategist Ulrich Stephan from Deutsche Bank. Automakers, meanwhile, benefited from a continued high order backlog and considered curbing output growth to prevent oversupply and margin erosion. In China, the bottom could also have been crossed shortly. There, the car manufacturers made an estimated third of their profits in the Dax.
Adtran brings up the rear
Apart from that, the focus was primarily on individual stocks from the MDax and SDax. First and foremost was the US telecom supplier Adtran. He severely disappointed with his first quarter. According to preliminary figures, both the company’s own targets and the expectations of the analysts, both in terms of sales and profits, were clearly missed. Retailers were particularly negative about the operating margin, an important indicator of profitability.
As the MDax tail light, Adtran’s shares ultimately lost almost a quarter of their value. In the SDax, in which the 70 smaller companies below the MDax can be found, the shares of the German subsidiary Adva fell by around four percent.
Evotec’s shares fell by 6.7 percent in the penultimate place in the MDax. The pharmaceutical researcher was the victim of a cyber attack before the Easter holidays. Selected systems are now scheduled to remain offline until the investigation is complete and security plans are implemented.
Hellofresh wins
With a plus of 5.3 percent, Thyssenkrupp’s shares were among the best MDax values. They benefited from renewed fantasies about the marine division of the industrial group. A dealer evaluated media reports about an imminent decision about their future as positive. The bidding process for the division could begin as early as this week.
Hellofresh gained a good four percent after the US bank JPMorgan upgraded the cooking box supplier’s shares twice from “underweight” to “overweight”. Analyst Marcus Diebel increased the price target from 18 to 27 euros. The prospects of price losses have now clearly disappeared, he wrote. The expansion in the area of ready meals is also promising.
The euro was last traded at $1.0904. The European Central Bank had previously set the reference rate at 1.0905 (Thursday: 1.0915) dollars.
On the bond market, the current yield rose from 2.14 percent on Thursday to 2.26 percent. The Rex pension index fell by 0.68 percent to 126.18 points. The Bund future fell by 1.09 percent to 135.79 points.
Source: Stern
