Investors on the German stock market reacted coldly to disappointing Chinese economic data on Wednesday. Around noon, the Dax was down 0.33 percent at 15,856 points. This indicates a minus of around 0.4 percent for the leading German index in May. The MDax of medium-sized companies fell on Wednesday by 0.89 percent to 26,558 points. The EuroStoxx 50 was down 0.4 percent.
Investors on the German stock market reacted coldly to disappointing Chinese economic data on Wednesday. Around noon, the Dax was down 0.33 percent at 15,856 points. This indicates a minus of around 0.4 percent for the leading German index in May. The MDax of medium-sized companies fell on Wednesday by 0.89 percent to 26,558 points. The EuroStoxx 50 was down 0.4 percent.
The economic recovery in China is slowing: Leading indicators were worse than expected in May. The official manufacturing Purchasing Managers’ Index (PMI) declined for the second straight month and remains below the 50-point line, signaling a contraction. While the service industry index remained in expansionary territory, it also fell. Both mood barometers were below expectations.
Meanwhile, import prices in Germany fell by 7.0 percent in April compared to the same month last year. This is the sharpest drop since October 2009. In March, import prices fell again for the first time in a long time, after having risen by more than 30 percent at times last summer. Meanwhile, the number of unemployed in Germany fell in May.
Shortly before the end of the month, investors are still focusing on the US debt issue. After the provisional agreement at the weekend, a corresponding draft law cleared a hurdle in the US House of Representatives. According to media reports, the responsible committee cleared the way for a vote. The draft will probably be debated in the parliamentary chamber this Wednesday, after which a vote will be held. The Republican chairman of the House of Representatives, Kevin McCarthy, is confronted with opposition from radical members of his party.
Among the individual values, the shares of Hannover Re and its parent company Talanx continued their recent good run with further records. Hannover Re gained around one percent and Talanx around 1.1 percent. Munich Re shares, the Dax leader, rose by 1.3 percent. In the morning, the General Association of the German Insurance Industry published quite positive data on the storm damage of the past year.
Morphosys shares rose 2.1 percent after UBS issued a buy recommendation. Analyst Xian Deng sees the biotech company’s stock affected by an unjustified loss of market confidence and sees it as severely undervalued. It forecasts peak sales of $1.1 billion just for the blood cancer drug in development, pelabresib. This corresponds to a capital value per share of 35 euros, more than the current share price, emphasized Deng.
The real estate group Deutsche Wohnen and its majority owner Vonovia are under pressure from investors because of a loan. The voting rights advisor ISS, together with the hedge fund Elliott, is pushing for a special review of a loan of up to two billion euros that Deutsche Wohnen had granted its major shareholder. The shares of Deutsche Wohnen fell by 2.5 percent, those of Vonovia lost 4.1 percent as the weakest Dax value.
Source: Stern
