The Dax continues its weak start to the week on German Unity Day. While rising yields are making bonds steadily more attractive, investors’ interest in stocks continues to decline.
The Dax continues its weak start to the week on German Unity Day. While rising yields are making bonds steadily more attractive, investors’ interest in stocks continues to decline.
The DAX lost 0.33 percent to 15,197.44 points. The leading index returned to its lowest level since March, which was reached a few days ago at 15,138 points. The MDax fell by 0.75 percent to 25,579.35 points on Tuesday. The Eurozone leading index EuroStoxx 50 was in the red at 0.3 percent.
According to Commerzbank, the high bond yields are linked to ongoing concerns about inflation and the associated need to keep interest rates high for longer. A solid purchasing managers’ index for US industry contributed to this on Monday by signaling a robust state of the US economy. Under this condition, investors assume that the US Federal Reserve has scope for continued high interest rates.
Individual values
On the corporate side, the news situation remained quiet due to the holiday. News that weighed on Zalando came from UK competitor Boohoo with a lowered sales outlook. Zalando shares ended their recent recovery with a setback of 2.6 percent. They have now reached their low for a year near the 20 euro mark.
Because of the prospect of higher interest rates for longer, investors – as they did recently – gave the utility sector a wide berth, as it needed capital. Of this, the shares of RWE and Eon were recorded in the Dax with charges of up to 2.6 percent. RWE sank to its lowest level since March 2022.
Otherwise, analyst comments again caused movement. Rational shares fell by 2.5 percent at the end of the MDax after the private bank Berenberg abandoned its buy recommendation for the commercial kitchen equipment supplier. As a positive exception in the MDax, Nemetschek’s shares were up 0.7 percent. Here Barclays Bank gave up its previous negative vote.
Source: Stern
