The Dax closed in the red on Wednesday under the impression of bad economic signals and new interest rate concerns. Investors pondered not only the recent surge in oil prices, but also a slump in incoming orders in Germany in July. However, the losses decreased somewhat in the afternoon.
The Dax closed in the red on Wednesday under the impression of bad economic signals and new interest rate concerns. Investors pondered not only the recent surge in oil prices, but also a slump in incoming orders in Germany in July. However, the losses decreased somewhat in the afternoon.
The Dax, which fell to its lowest level in more than a week at 15,676 points, went 0.19 percent lower at 15,741.37 points. The MDax with the medium-sized German stocks also fell more by 0.83 percent to 27,437.26 points on Wednesday.
Concerns about “stagflation” were cited as a stumbling block on the market. What is meant by this is a situation in which inflation is rising but economic growth is lacking. While the oil prices increase the inflationary pressure again and with it the interest rate concerns of the investors, alarming signals came from the largest European economy with the German incoming orders.
In Germany and throughout Europe, for example, financial stocks, which are sensitive to the economy, suffered relatively severely from the gloomy economic prospects. In the Dax, Deutsche Bank shares lost 1.9 percent and Commerzbank 3.3 percent.
Investors, on the other hand, grabbed stocks that are considered defensive. These included the shares of RWE, which recovered by 1.3 percent from their recent slide. In a study, Sam Arie from UBS gave hope for a trend reversal.
In the chemical sector, too, an analyst’s voice raised hopes for better times. JPMorgan analyst Chetan Udeshi wrote in a study of signs of a possible demand recovery in the coming quarters. In the MDax, the prices of Lanxess, Evonik and Wacker Chemie increased by between 1.6 and 3.0 percent.
United Internet’s shares gained 1.5 percent in value in the SDax small-cap index. The mobile communications and Internet group will be included in the MDax in mid-September, which comes as a bit of a surprise to retailers.
On the European stage, the EuroStoxx fell by 0.72 percent to 4238.26 points. Paris saw relatively sharp losses, while London ended modestly in the red. On Wall Street, the Dow Jones Industrial was recently down half a percent.
The euro was last traded at $1.0717. The European Central Bank has meanwhile set the reference rate at 1.0745 (Tuesday: 1.0731) US dollars. The dollar thus cost 0.9306 euros.
In bond trading, the current yield fell from 2.70 percent on the previous day to 2.63 percent. The Rex pension index fell by 0.09 percent to 124.01 points. The Bund future was 0.37 percent lower at 130.91 points.
Source: Stern
