The Dax rose moderately and benefited from some strong quarterly reports. Nevertheless, the 16,000 point mark is still too high a hurdle. However, mixed economic data came from China, which therefore provided little impetus.
The Dax rose moderately and benefited from some strong quarterly reports. Nevertheless, the 16,000 point mark is still too high a hurdle. However, mixed economic data came from China, which therefore provided little impetus.
On another trading day with numerous quarterly reports, the Dax rose by 0.39 percent to 15,957.46 points in early trading. The MDax gained 0.52 percent to 27,507.17 points. At the same time, the leading euro zone index EuroStoxx 50 advanced by 0.68 percent to 4336.26 points.
The German stock exchange barometer has been fluctuating around 400 points for a good month now. It is well supported just below 15,700 points. On the other hand, the psychologically important hurdle of 16,000 points on the way to the record high of around 16,290 points acts like a lid.
Before US producer prices are likely to come into focus in the afternoon, the interest rate decision by the Bank of England is due in Great Britain. The twelfth increase in a row is expected, and there too investors are now hoping for signals of a pause or even an end to the increase cycle. However, portfolio manager Thomas Altmann from QC Partners currently considers that rather unlikely.
In Germany, several Dax companies, including Bayer, Merck KGaA and Telekom, are once again in the limelight with quarterly figures. There are many more companies that submit their reports from the MDax and SDax.
Deutsche Telekom reported its highest quarterly profit in years and slightly raised its full-year operating profit target. Above all, the strong development of business in the home market of Germany was well received by analysts. With plus 1.8 percent, the t-share sat at the top of the Dax.
Merck KGaA shares rose 1.4 percent. The pharmaceutical and specialty chemicals group was hit by the decline in corona revenues and the ongoing weakness in the sale of liquid crystals for screens at the beginning of the year. However, the adjusted operating result did not fall as significantly as analysts had expected. Hannover Re’s share gained 1.0 percent. After a surprisingly good start to the year, the world’s third-largest reinsurer sees itself on course for its planned record profit for 2023.
On the other hand, the continued pressure on the exceptionally high prices for the weed killer glyphosate a year ago makes Bayer a little more cautious for 2023. Although the Group’s outlook was confirmed in principle, target achievement was expected to be in the lower corridor of the forecast. Above all, the weakness of the pharmaceutical division was criticized on the market. The share lost 4.8 percent.
In the MDax, attention was focused on Knorr- Bremse among other things, while in the SDax it was on the Suse share. The truck and train brake manufacturer Knorr-Bremse did better than expected in the first quarter thanks to good demand in Asia and North America. Analysts particularly praised the order situation and sales, which brought the share certificate at the top of the index an increase of 3.2 percent. In contrast, Suse collapsed by 20 percent because the Linux specialist not only reported weaker than expected quarterly business, but also lowered its annual targets for the fiscal year running until the end of October.
Source: Stern
