Inflation data from the US briefly drove the Dax to its highest level since January 2022 on Wednesday. After a jump to 15,827 points, the leading German index was only up 0.31 percent to 15,703.60 points at the close, which at least continued the positive development of the past two trading days. The MDax of medium-sized stocks ultimately lost even 0.40 percent to 27,340.86 points.
Inflation data from the US briefly drove the Dax to its highest level since January 2022 on Wednesday. After a jump to 15,827 points, the leading German index was only up 0.31 percent to 15,703.60 points at the close, which at least continued the positive development of the past two trading days. The MDax of medium-sized stocks ultimately lost even 0.40 percent to 27,340.86 points.
Analyst Konstantin Oldenburger from broker CMC Markets spoke of “some good news for the stock market, since the interest rate hikes by the central banks seem to be having an effect. However, investors are not yet sure how to interpret the data”. The development “should calm the nerves of the Fed a little”, Commerzbank commented on the data with a view to the further monetary policy of the US central bank. She expects two more rate hikes of 0.25 percentage points each. “However, core inflation is still uncomfortably high,” said analyst Ulrich Wortberg from Landesbank Hessen-Thüringen (Helaba).
Enthusiasm about the data also quickly subsided on the European stock exchanges: the leading eurozone index EuroStoxx 50 and the French Cac 40 closed with only minimal gains, while the London FTSE 100 rose by 0.5 percent in the end. On the New York Stock Exchange, the leading index Dow Jones Industrial was slightly up at the end of trading in Europe, while the technology-heavy Nasdaq 100 fell by 0.4 percent.
US consumer prices rose somewhat more moderately than forecast in March. They recorded the weakest increase since May 2021. The core inflation rate, on the other hand, rose as expected.
Inflation data is in focus because it is important for the Fed’s monetary policy. Most recently, the financial markets were expecting a key interest rate increase of 0.25 percentage points in May. However, an unchanged interest rate is also not ruled out. It is still uncertain to what extent the recent turbulence in the banks will affect lending and inflation.
Daimler Truck wins
At the end of the Dax, shares in the pharmaceutical and specialty chemicals manufacturer Merck KGaA fell by 7.4 percent to EUR 160.50 after bad news. They continued the weak previous day and were as cheap as they were last in October. The US Food and Drug Administration (FDA) suspended the admission of new patients for therapy with the multiple sclerosis drug evobrutinib as part of the final clinical trial of the drug. The reason is a suspicion of liver damage.
The shares of the truck and bus manufacturer Daimler Truck, on the other hand, benefited as the frontrunner with a plus of 3.8 percent from the strong quarterly figures of the Swedish competitor Volvo. In the small-cap index SDax, the papers of the Volkswagen truck holding company Traton rose by 7.2 percent as the best value. According to Canadian bank RBC, Volvo’s adjusted operating profit was 46 percent above the average analyst estimate.
The carmaker Mercedes-Benz sold more cars in the first three months of 2023 than a year ago. It benefited above all from strong demand for expensive luxury models and electric cars. The papers rose by 0.7 percent. For the title of the competitor BMW, it even went up by 1.7 percent.
Real estate stocks, which had attracted buying interest even before the US inflation data were published, at least temporarily expanded their gains after the publication. Ultimately, Vonovia was one of the best Dax stocks with a plus of 1.7 percent. Aroundtown was one of the biggest winners in the MDax with a plus of 4 percent. The shares of index neighbor TAG Immobilien increased by 2.8 percent. The shares of Grand City Properties, up 2.8 percent, and Deutsche Wohnen, up 3.9 percent, were among the best stocks in the SDax.
BASF achieved a plus
BASF shares reacted to key data for the first quarter with strong price fluctuations and ended up gaining 0.6 percent. The chemical company had recorded a surprisingly significant drop in sales – however, the operating profit before interest and taxes (adjusted EBIT) adjusted for special items did not fall as much as feared.
The euro benefited somewhat more sustainably than the stock markets from the US inflation data and most recently rose to 1.0988 US dollars. The European Central Bank had previously set the reference rate at $1.0922.
On the bond market, the current yield rose from 2.26 percent on the previous day to 2.34 percent. The Rex pension index fell by 0.01 percent to 126.17 points. The Bund future lost 0.56 percent to 135.10 points.
Source: Stern
