The Dax fell towards the 15,000 point mark on German Unity Day. While rising yields make bonds more attractive, investors’ interest in stocks continued to decline.
The Dax fell towards the 15,000 point mark on German Unity Day. While rising yields make bonds more attractive, investors’ interest in stocks continued to decline.
The Dax continued its weak start to the week and recently lost 0.86 percent to 15,116.61 points. The MDax fell by 1.47 percent to 25,394.65 points. While the Eurozone leading index EuroStoxx fell by 0.8 percent, losses were also evident on the US stock exchanges.
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 outlook. Zalando shares ended their recent recovery with a setback of 4.2 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 these, the shares of Siemens Energy, RWE and Eon were recorded in the Dax with charges of up to 3.7 percent. As a result, RWE sank to its lowest level since March 2022.
Various stocks from the second and third series of indexes, which primarily belong to the renewable energy sector, also followed the sector’s weakness. Encavis, Nordex and Energiekontor were among the biggest losers with losses of between 3.9 and 5.3 percent in the MDax and SDax indices.
As a positive exception in the MDax, Nemetschek’s shares were up 1.9 percent. Here Barclays Bank gave up its previous negative vote.
The prices of German federal bonds fell on Tuesday. The Rex bond index fell by 0.29 percent to 122.26 points. In return, the current yield rose from 2.87 percent the day before to 2.91 percent. The euro’s price has not recovered from its recent decline, reaching 1.0466 euros. The European Central Bank (ECB) set the reference rate at $1.0530 on Monday afternoon.
Source: Stern
