Ahead of the key interest rate decision in the USA, investors on the German stock market remain cautious. After two days of trading with losses, the DAX rose slightly again. Nevertheless, as in previous weeks, it is likely to continue to move within a fairly narrow range.
Ahead of the key interest rate decision in the USA, investors on the German stock market remain cautious. After two days of trading with losses, the DAX rose slightly again. Nevertheless, as in previous weeks, it is likely to continue to move within a fairly narrow range.
In early trading, the leading German index rose by 0.40 percent to 15,725.50 points. It has been stuck in the range between around 15,500 and around 16,000 points for weeks now, and according to Jürgen Molnar, capital market strategist at Robomarkets, it is feared that the lethargy will continue even after the results of the US Federal Reserve meeting.
The MDax gained 0.77 percent to 27,112.08 points in early business. The Eurozone leading index EuroStoxx 50 advanced by 0.16 percent to 4249.66 points.
No reason for a “big shopping spree”
“The reason for the current reluctance on the stock market should not be blamed solely on uncertainty regarding monetary policy,” said Molnar. “Rather, regardless of whether there is a break in interest rates or not, there is currently no real reason to go on a big shopping spree on the stock market. The economic indicators speak for themselves, especially in Europe and Germany the signs point to recession.”
There is now widespread agreement among economists and market participants that the Fed will not raise interest rates – as it did in August. However, the monetary policy outlook is causing uncertainty. The central question is whether the interest rate plateau has been reached or whether there will be further increases in the future.
Individual values
Among the individual stocks, the attention was particularly focused on Talanx, because the insurance group wants to increase the proportion of shares in free float with a capital increase and, among other things, also increase the capital resources for possible further takeovers. In addition, majority shareholder HDI wanted to offer its own shares worth up to 100 million euros for purchase, it was said.
In view of the recent price losses of 6.2 percent, a trader pointed out that Talanx had placed the new shares at a price of 61.50 euros each, which was 4.30 euros below the closing price of the previous day. In addition, the shares have had a strong run and will still have a price increase of around 38 percent in 2023. The shares of the Dax-listed Talanx subsidiary Hannover Re were also weak at minus 1.1 percent.
In contrast, the recovery of Commerzbank shares continued with an increase of 1.2 percent. CFO Bettina Orlopp said during a financial conference that due to the sharp rise in interest rates, there should be a slightly larger net interest income this year than previously forecast.
Delivery Hero won 7.2 percent as the favorite in the MDax. Analyst Christian Salis from Hauck Aufhäuser Investment Banking rated the share as “Buy” with a price target of 65 euros. After subdued expectations at the beginning of the year, positive news from the food supplier can now be expected again, he wrote. The efficiency measures were taking effect and sales growth has been recovering since the second quarter. JPMorgan also expressed confidence in the stock this morning.
Hugo Boss increased by 2.1 percent – also below the top values in the MDax. The analysis house Jefferies has repositioned itself in the luxury goods industry and reclassified the fashion company’s paper as “Buy” and a price target of 80 euros.
Outside the major indices, the shares of caravan manufacturer Knaus Tabbert rose by a good eight percent after the company raised its margin target.
Source: Stern
