The Dax hit another hurdle on Whit Monday at 16,000 points. The leading index managed to return above the round mark at times. In a thin event due to the holiday, however, he lacked the strength to stay there. He crossed the finish line with a minus of 0.20 percent to 15,952.73 points. In the second row of stock exchanges, the MDax fell by 0.25 percent to 26,923.47 points.
The Dax hit another hurdle on Whit Monday at 16,000 points. The leading index managed to return above the round mark at times. In a thin event due to the holiday, however, he lacked the strength to stay there. He crossed the finish line with a minus of 0.20 percent to 15,952.73 points. In the second row of stock exchanges, the MDax fell by 0.25 percent to 26,923.47 points.
The stock exchanges had already anticipated a breakthrough in the US debt dispute last Friday in afternoon trading. Investors now lacked new impetus, which, due to the public holidays, did not come from London or New York. Many investors used Whit Monday for a long weekend.
A default by the USA with possible negative consequences for the global economy will probably be avoided at the last minute. US President Joe Biden and Republican negotiator Kevin McCarthy sealed a compromise over the weekend that would suspend the debt ceiling until 2025 in exchange for significant spending cuts. The project still has to be approved by Congress.
The focus was also on weaker economic data from the Far East: the profits of industrial companies in China fell by more than 20 percent in the first four months of the year, which underlines the cooling off in demand in the world’s second largest economy.
Among the individual values, the shares of Borussia Dortmund were the focus of interest after the failed German championship. After the fans, the missed title of the Bundesliga soccer team also dismayed investors, as the 27 percent drop in prices shows. There was nothing left of last week’s price rally, when the football club was still being traded as a big favorite on the stock exchange.
Talanx shares rose by 2.1 percent at the top of the MDax. The insurance group takes over the Latin American business from the US insurer Liberty Mutual Insurance. The purchase includes Liberty’s private customer business in Brazil, Chile, Colombia and Ecuador and has a gross premium volume equivalent to around EUR 1.7 billion. The transaction is expected to be completed in the first half of 2024.
In the case of Suse shares, the last takeover fantasy that arose on Whit Monday went a long way. After they had jumped by about 18 percent before the weekend after a press report according to which financial investors are said to be interested in buying the German Linux specialist, things have now gone down by 6.4 percent.
The EuroStoxx 50 fell 0.40 percent to 4320.01 points, while the French Cac 40 fell 0.21 percent to 7303.81 points. There was no trading on the London Stock Exchange on Monday due to the “Spring Bank Holiday” and the “Memorial Day” was celebrated in New York.
The euro was a little lighter, trading at $1.0712. The European Central Bank set the reference rate at 1.0715 (Friday: 1.0751) dollars. The dollar thus cost 0.9333 euros.
On the bond market, the current yield fell from 2.54 percent on Friday to 2.51 percent. The Rex pension index rose by 0.19 percent to 125.18 points. The Bund future gained 0.66 percent to 134.22 points.
Source: Stern
