The positive start to the week was promptly followed by a price setback on the German stock market on Tuesday. Investors preferred to exercise caution ahead of this week’s important dates, which include the European Central Bank’s (ECB) interest rate decision. This was also reflected in subdued trading on the US stock exchanges.
The positive start to the week was promptly followed by a price setback on the German stock market on Tuesday. Investors preferred to exercise caution ahead of this week’s important dates, which include the European Central Bank’s (ECB) interest rate decision. This was also reflected in subdued trading on the US stock exchanges.
The DAX closed 0.54 percent lower at 15,715.53 points. This means that the leading index remains in the middle of its range of the past few weeks. The MDax of medium-sized stocks fell by 0.42 percent to 27,089.87 points on Tuesday.
Inflation data from the USA on Wednesday, the ECB meeting on Thursday and the big decline on the futures exchanges at the end of the week – “any involvement in the stock market could be premature,” said Jürgen Molnar from the broker Robomarkets, summarizing the reasons for investors to keep a low profile hold. With regard to the ECB, the tension has rarely been so great. It remains extremely controversial among stock market investors whether there will be a further interest rate hike or a pause in interest rates.
Mixed ZEW economic expectations did not provide any clear insights into this. Although the financial experts’ mood barometer surprisingly brightened somewhat, their assessment of the situation was poor and the index remained in negative territory. According to Helaba’s assessment, the economic outlook therefore remains cloudy. “With regard to the ECB, the numbers are unlikely to cause a change in sentiment,” said Helaba economist Ralf Runde.
There was a race for the top spot in the Dax over the course of the day, which Commerzbank won. Financial stocks generally continued their recovery before the ECB decision and Commerzbank closed with a gain of two percent. Car values also continued to recover.
In the morning, the shares of the consumer goods manufacturer Beiersdorf were still in the race for first place, but the plus dropped to 0.2 percent. Optimistic analyst research was a theme here, including an upgrade from Exane BNP. Conversely, the French investment bank gave up its optimism for its competitor Henkel. Its shares lost 2.5 percent in value.
At the end of the index, MTU shares continued their free fall of 6.9 percent due to an expected burden of billions. The day before, the shares had fallen by a double-digit percentage because the engine manufacturer had reserved its sales and profit forecast due to a product recall of Airbus engines in which it is involved.
A drop in share prices at the US software company Oracle due to disappointing cloud growth also weighed on SAP, where the decline was most recently 1.8 percent. Oracle missed what one analyst described as “excessive expectations” with slowing growth in its important cloud business.
In the MDax, the shares of the meal kit mail order company Hellofresh impressively continued their rally of the past few weeks with a price jump of 8.2 percent. JPMorgan analyst Marcus Diebel not only put it on the “Analyst Focus List” of particularly interesting investment opportunities. With the “Positive Catalyst Watch” status, the expert also expects positive price drivers.
Shares in the packaging specialist Gerresheimer, on the other hand, slipped 6.3 percent as the bottom of the MDax. After a particularly good run this year, they continued their correction of the past few days.
The Eurozone leading index EuroStoxx 50 closed 0.28 percent lower at 4242.27 points. In Paris, the Cac 40 fell slightly, but London’s FTSE 100 closed with gains. In New York, the Dow Jones Industrial was slightly up, but things went downhill on the Nasdaq.
The last price paid for the euro was 1.0727 US dollars. The European Central Bank set the reference rate at 1.0713 (Monday: 1.0724) dollars. The dollar therefore cost 0.9334 (0.9324) euros.
On the bond market, the current yield on German federal bonds rose from 2.63 percent the day before to 2.65 percent. The Rex bond index climbed 0.01 percent to 123.80 points. The Bund future fell by 0.07 percent to 130.59 points.
Source: Stern
