Before the key interest rate decision in the USA in the middle of the week, investors continued to hold back from buying on the stock market. The DAX closed weaker for the third trading day in a row. The gains from last week have long since been wiped out.
Before the key interest rate decision in the USA in the middle of the week, investors continued to hold back from buying on the stock market. The DAX closed weaker for the third trading day in a row. The gains from last week have long since been wiped out.
The German stock market barometer ended trading with a discount of 0.40 percent to 15,664.48 points, but remains unchanged in the trading corridor of the past few weeks between around 15,500 and around 16,000 points.
The MDax closed almost unchanged at minus 0.04 percent to 26,904.25 points. The important stock exchanges in Europe also closed little changed: The Eurozone leading index EuroStoxx 50 fell by 0.07 percent to 4242.70 points. The national stock exchanges in Paris and London closed marginally in positive territory. In the USA, on the other hand, the most important indices weakened at the close of trading in Europe.
Waiting for the US Federal Reserve
Investors preferred to wait for the US Federal Reserve’s decision and take profits after the Dax failed again before the weekend at the sound barrier of 16,000 points, said market analyst Konstantin Oldenburger from broker CMC Markets. The market is now expecting that the Fed will take another interest rate break and perhaps also give signals that the interest rate spiral is coming to an end.
Little attention was paid to the fact that inflation in the Eurozone surprisingly weakened slightly in August. Preliminary data from the end of August showed stagnation. Market observer Craig Erlam from broker Oanda commented on the development that it was a relief to see that data surprises were going in the right direction. This supports the European Central Bank’s (ECB) recently emphasized view that no further interest rate increases are likely to be necessary in the Eurozone.
Real estate sector with plus
The real estate sector benefits from this. With a gain of 3.65 percent, Vonovia’s shares were the top value in the Dax and almost made up for their losses from the last two trading days. On Friday they had climbed to their highest level since February. In the MDax, LEG and TAG Immobilien increased by just over two percent. In the SDax, Deutsche Wohnen jumped by 5.0 percent and Aroundtown even jumped by just over 8 percent.
The share of the car manufacturer Volkswagen also received tailwind, rising by 2.1 percent in second place in the Dax. After a weak stock market year in 2023, analyst Philippe Houchois from Jefferies Research gave hope with a buy recommendation. The Wolfsburg-based company is a “slow-moving tanker”. However, in 2024 he expects enormous improvements on the cost side for the core brand.
DHL Group, on the other hand, was at the bottom of the leading index with minus 6.5 percent. Concerns about business development were a burden. The analysis house Kepler Cheuvreux is missing a revival in volume and at the same time highlighted the headwind for the logistics group from fuel prices and exchange rates.
Kion lost 2.4 percent due to a share placement that was probably at the lower end of the targeted range. For Aurubis, on the other hand, the MDax rose by 2.9 percent. In a statement, the copper company informed about the specific financial burdens of millions due to alleged fraud on the part of individual scrap suppliers. This eliminates the uncertainty, commented stock expert Frederik Altmann from Alpha Securities Trading.
The euro fell, trading at $1.0683 early in the evening. The ECB had set the reference rate at 1.0713 (Monday: 1.0663) dollars. The dollar therefore cost 0.9334 (0.9378) euros. On the bond market, the current yield rose from 2.73 percent the day before to 2.75 percent. The Rex bond index fell by 0.10 percent to 122.90 points. The Bund future fell by 0.31 percent to 129.56 points.
Source: Stern
