After the clear minus in the middle of the week, the German stock market made up some ground on Thursday. The fact that the US House of Representatives approved the laboriously negotiated deal in the debt dispute provides support. This takes the United States a big step closer to averting an impending last-minute default by the government. In addition, after the recent rather dismal economic data from China, there were now positive signals.
After the clear minus in the middle of the week, the German stock market made up some ground on Thursday. The fact that the US House of Representatives approved the laboriously negotiated deal in the debt dispute provides support. This takes the United States a big step closer to averting an impending last-minute default by the government. In addition, after the recent rather dismal economic data from China, there were now positive signals.
The Dax recently gained 0.9 percent to 15,800.27 points. The day before, the leading index had fallen to its lowest level in seven weeks and ended May with a loss of around 1.6 percent.
The MDax of medium-sized companies rose by 0.2 percent to 26,584.21 points on Thursday morning. The EuroStoxx 50 was up 0.8 percent.
The US House of Representatives voted in favor of legislation that would suspend the debt ceiling until 2025 while curbing government spending over the next two years. Now the Senate has to approve the plan, and President Joe Biden has to sign the bill into law so the government doesn’t run out of money.
In China, the purchasing managers’ index for the manufacturing sector (Caixin index) surprisingly rose above the growth implying level of 50 points in May. The current value certainly does not predict an imminent economic boom, but it does not point to dramatic economic problems either, said analyst Thomas Altmann from QC Partners.
The German inflation rate from Wednesday will be followed by that for the euro zone this Thursday. “Today’s value will certainly have a significant influence on the ECB’s next interest rate decision. After prices in Germany fell by 0.1 percent in May but rose by 0.3 percent in Italy, it is now interesting to see where the euro zone as a whole is headed “Said Altman.
The experts at Helaba also referred to the US initial jobless claims due in the afternoon and the labor market report from the private service provider ADP. These are likely to point to the official US job market report for May, which is scheduled for Friday. The ISM index for the US manufacturing sector, which has been in declining territory in recent months, could also attract attention.
SAP’s shares rose 0.6 percent. The market pointed out that Salesforce had delivered decent numbers after the US stock market closed. However, only poor growth prospects were criticized, since the software group is currently focusing more on profit development. Salesforce papers plummeted.
According to an analyst study, the shares of Heidelberg Materials rose by 1.9 percent. The US bank JPMorgan upgraded the building materials group’s shares from “neutral” to “overweight” and increased the price target to 80 euros.
The rapid rally in shares of the nationalized utility Uniper continued on Thursday, with prices rising 14 percent to their highest level since November 2022. This means that the price increase since last Thursday has totaled around 70 percent. Uniper announced last week that, thanks to hedging transactions, “significant profits from the replacement procurement of gas volumes” are expected for Russian supply cuts. Further equity increases by the federal government would therefore no longer be necessary.
Source: Stern
