Growing confidence about a settlement of the debt dispute in the USA has caused a liberation on the German stock market. After around five weeks of trading characterized by lethargy, the Dax not only managed to jump over the psychologically important mark of 16,000 points on Ascension Day.
Growing confidence about a settlement of the debt dispute in the USA has caused a liberation on the German stock market. After around five weeks of trading characterized by lethargy, the Dax not only managed to jump over the psychologically important mark of 16,000 points on Ascension Day.
It also came back to its highest level in early 2022 at around 16,230 points. However, sales on this nationwide holiday were extremely thin.
With an increase of 1.33 percent to 16,163.36 points, the stock market barometer finally went out of trading. The record high of a good 16,290 points that the Dax reached in November 2021 is also within reach. The MDax of medium-sized companies rose by 0.77 percent to 27,616.47 points on Thursday. Gains were also posted on the major European stock exchanges.
The Republican chairman of the House of Representatives, Kevin McCarthy, considers an agreement on the debt ceiling to be possible next week. The negotiating partners are now in a “much better position,” he said. If no agreement is reached soon, there could be a risk of default at the beginning of June.
Technology and auto stocks strong
Technology and car stocks in particular benefited from the renewed willingness to take risks on the part of market players across Europe. In the Dax, for example, Infineon rose by four percent, in the MDax it went up for Aixtron and Siltronic and in the SDax for Süss Microtec by a similar magnitude.
Industry news provided additional impetus. For example, Japan reportedly wants to give US chip manufacturer Micron $1.5 billion as an incentive to support the country’s production of next-generation memory chips. This was reported by the Bloomberg news agency, citing informed people.
Among the car values, the papers of the VW investment company Porsche SE and Volkswagen itself rose by around four percent. The Wolfsburg want to bring their low-profit core brand back on track with a new savings and efficiency program. “We can see that our brand – despite all its strengths – is not yet economically solid enough,” said brand boss Thomas Schäfer in an internal letter to the employees, which is available to the financial news agency dpa-AFX.
individual values
The Commerzbank shares more than made up for their heavy losses from the previous day at the top of the Dax and rose by almost four and a half percent. The financial institution had presented quarterly figures the day before, but were not convincing despite the raised annual forecast for net interest income.
The electricity supplier Eon distributed its dividend of EUR 0.51 per share on this day, but the share weakened nonetheless. A downgrade of Societe Generale weighed. The major French bank downgraded the paper, which was included in the rating with “Buy” in November 2022, to “Hold” and cited the above-average price development since the beginning of the year as the reason. Since then, Eon stock has risen nearly 20 percent.
Looking at Europe’s stock exchanges, the leading eurozone index, the EuroStoxx 50, rose by 1.02 percent to 4367.45 points, and gains were also recorded in Paris and London. In the USA, the Dow Jones Industrial fell minimally after the previous day’s significant gains, while the technology-heavy Nasdaq indices continued to rise significantly.
The euro rate fell. The shared currency was trading at $1.0771 early in the evening. The European Central Bank set the reference rate at 1.0813 (Wednesday: 1.0829) dollars. The dollar thus cost 0.9248 (0.9235) euros. The current yield on the bond market remained at 2.34 percent. The Rex pension index fell by 0.46 percent to 125.85 points. The Bund future fell by 0.90 percent to 134.08 points.
Source: Stern
