The week dominated by the key interest rate decision in the Eurozone started with price gains on the German stock market. The DAX closed 0.39 percent higher on Monday at 15,800.99 points. It is now back in the upper half of the week-long trading range, which ranges from 15,500 to 16,000 points. At the start of the week, the MDax for medium-sized companies rose by 0.53 percent to 27,204.49 points.
The week dominated by the key interest rate decision in the Eurozone started with price gains on the German stock market. The DAX closed 0.39 percent higher on Monday at 15,800.99 points. It is now back in the upper half of the week-long trading range, which ranges from 15,500 to 16,000 points. At the start of the week, the MDax for medium-sized companies rose by 0.53 percent to 27,204.49 points.
After the leading index record at the end of July, stubbornly high inflation and increasing economic concerns have been limiting investors’ buying mood for weeks. It is fitting that the EU Commission lowered its growth forecast for the European Union and Germany on Monday.
The biggest topic of conversation was MTU shares, which fell by 12 percent. News from the defense company and aviation supplier RTX had a negative impact here, which also had an impact on the engine manufacturer. RTX is expecting billions in costs from a major engine recall, in which MTU is also involved. A lack of materials is forcing hundreds of Airbus jets to gradually remain on the ground. Both Airbus suppliers are therefore preparing for billions of euros in costs. MTU made its own sales and profit forecast for 2023 subject to change.
On the other hand, Covestro shares, which continued to be driven by takeover fantasy, were in great demand with an increase of 3.9 percent. After weeks of speculation, the chemical company announced on Friday evening that it was holding “open-ended discussions” about a possible takeover with the oil company Adnoc from Abu Dhabi.
Otherwise, investors continued to act very defensively when selecting industry stocks, the market said. Papers from the arms manufacturers Rheinmetall and Hensoldt were in demand with premiums of up to three percent.
Before the ECB decision, banks and real estate stocks were also very popular with investors. In this country, the prices of Deutsche Bank and Commerzbank climbed by up to two percent. For the shares of the real estate group Vonovia, the recovery continued at the highest level since March by 4.2 percent.
From an industry perspective, reinsurers were also in demand. At the industry meeting in Monte Carlo, the German providers Munich Re and Hannover Re each commented positively on the prospects and prices – their shares rose by up to two percent.
At the European level, the EuroStoxx 50 reached 4,254.33 points, an increase of 0.40 percent. The Paris leading index Cac 40 rose by half a percent, while the London FTSE 100 closed somewhat more moderately in positive territory. In New York, the Dow Jones Industrial recently remained slightly positive. However, there were clearer profits on the Nasdaq stock exchange.
The euro was last trading higher at $1.0743. The European Central Bank set the reference rate at 1.0724 (Friday: 1.0704) dollars. The dollar therefore cost 0.9324 euros.
The prices of German federal bonds hardly changed at the start of the week. In bond trading, the current yield remained at 2.63 percent. The Rex bond index fell by 0.14 percent to 123.79 points. The Bund future lost 0.18 percent to 130.71 points.
Source: Stern
