The Dax recovered somewhat today from the losses it suffered at the end of the week. After a mixed start to trading, the leading German index rose by 0.57 percent to 15,921.82 points by midday after losing around one percent on Friday.
The Dax recovered somewhat today from the losses it suffered at the end of the week. After a mixed start to trading, the leading German index rose by 0.57 percent to 15,921.82 points by midday after losing around one percent on Friday.
The MDax of medium-sized companies fell by 0.08 percent to 28,061.53 points on Monday. The Eurozone leading barometer EuroStoxx 50 rose by 0.35 percent.
News that China is taking action to address the worsening housing crisis in the country provided some reassurance during trading. According to those informed, the Chinese banking regulator has announced that it will set up a task force to investigate the risks at the Zhongzhi Enterprise Group, which is also active in the real estate market, reports the Bloomberg news agency. Zhongzhi Enterprise, one of the country’s largest private wealth managers, has failed to make payments on investment products sold to very wealthy clients and corporations, sources said.
In the past few days, the crisis in real estate developer Country Garden, which is in financial difficulties, has intensified in China. It symbolizes the crisis in the Chinese real estate market, whose boom over many years has ensured brisk demand from numerous companies in the construction, metal and chemical industries. That has now reversed.
“What was observed in Germany last week could now expand into a real crisis in China and also affect the global financial markets,” writes Jürgen Molnar, capital market strategist at the trading house Robomarkets. Project developers in the real estate industry have recently dropped one after the other, rising interest rates, payment defaults and an overall decline in interest in commercial real estate in particular are causing liquidity problems.
Success course for Siemens
Among the biggest winners in the Dax, Siemens shares rose by 0.8 percent after a positive analyst comment. The market’s recent overreaction to the normalization of the order situation at the industrial group offers an attractive entry opportunity, writes the expert Philip Buller from the private bank Berenberg.
Hauck Aufhäuser Investment Banking was confident about Bechtle. In view of the difficult macroeconomic environment, the IT service provider presented remarkably good results for the second quarter, writes analyst Nicole Winkler. The Bechtle shares thus rose by two percent at the top of the MDax.
At the end of the index, the shares of TAG Immobilien, which had recently performed very well, fell by almost three percent after falling by a good nine percent in early trading. In view of a devaluation of the real estate portfolio, the group made a loss in the first half of the year, but confirmed its annual targets.
There were also significant price fluctuations in the SDax small-cap index, where Bilfinger’s shares soared by almost five percent. High demand gave the industrial service provider a boost in the second quarter as well.
Source: Stern
