After stabilizing the day before, the Dax began a recovery on Tuesday thanks to friendly US stock markets. The leading German index closed trading 0.54 percent higher at 14,879.94 points. Companies’ encouraging business figures were not only well received on Wall Street. The MDax of medium-sized companies gained 1.43 percent to 24,423.49 points.
After stabilizing the day before, the Dax began a recovery on Tuesday thanks to friendly US stock markets. The leading German index closed trading 0.54 percent higher at 14,879.94 points. Companies’ encouraging business figures were not only well received on Wall Street. The MDax of medium-sized companies gained 1.43 percent to 24,423.49 points.
In addition to the Middle East conflict, investors are keeping a close eye on returns on the US bond market. On Monday, the yield on trend-setting ten-year US government securities temporarily rose to more than five percent, which had a significant impact on the stock markets. Only an easing in yields in the afternoon gave the Dax, which had meanwhile fallen to 14,630 points and thus to its lowest level since March, a tailwind again. On Tuesday, in addition to the strong start in the US, there was also some positive company news in this country.
The shares of the engine manufacturer MTU rose by 6.1 percent at the top of the DAX. Dealers referred to statements from RTX that the problems with the GTF engines from its subsidiary Pratt & Whitney were now viewed more positively. MTU is a consortium partner and supplies parts for the GTF engine. General Electric (GE) also raised its forecast. The reason is a recovering demand in air traffic, which is having a positive impact on growth in the business with engines for civil aviation and related services, it was said.
GE is also making better progress in the alternative energy division with systems for power grids and onshore wind turbines. Investors viewed this as positive for German wind turbine manufacturers. Siemens Energy gained 1.4 percent, Nordex climbed 5.7 percent.
The shares of the laboratory and pharmaceutical equipment manufacturer Sartorius abandoned their attempt to recover over the course of the day, slipped significantly into the red and ultimately closed with a gain of 0.3 percent. Traders referred to negative news from US competitor Danaher, which does not yet see a real turnaround in orders in the bioprocessing division. The Sartorius shares had been under pressure for days due to a slump in profits and an uncertain forecast.
After a good third quarter, the construction software provider Nemetschek expects higher annual sales than before. This gave the shares a price increase of 8 percent and the top position in the MDax. Talanx also exudes optimism. The insurance group (HDI) is expecting more profit in the current year following unexpectedly good business. The papers advanced by 3.1 percent.
The titles of the sporting goods manufacturer Puma SE gained 7.6 percent after quarterly figures and further confirmation of the annual targets. From the point of view of DZ Bank analyst Thomas Maul, Puma achieved a “small positive surprise” with the figures. After the temporary great uncertainty, the news should provide further calm.
A positive recommendation from the investment house Keefe, Bruyette & Woods (KBW) gave Flatexdegiro shares a tailwind. The increase for the shares of the online broker at the top of the small cap index SDax was 6 percent.
The EuroStoxx 50 gained 0.58 percent to 4065.37 points. France’s Cac 40 rose 0.6 percent and Britain’s FTSE 100 closed 0.2 percent higher. In New York, the Dow Jones Industrial also rose by 0.6 percent at the close of European trading.
The euro was weighed down by weak economic data from the euro zone and was last quoted at 1.0592 US dollars. The S&P Global Purchasing Managers’ Index unexpectedly fell in October and continues to signal a decline in economic output. Both the industrial and service sector indicators fell. The European Central Bank set the reference rate at 1.0632 (Monday: 1.0597) US dollars. The dollar therefore cost 0.9405 (0.9436) euros.
On the German bond market, the current yield fell from 2.93 percent the day before to 2.79 percent. The Rex bond index rose by 0.60 percent to 123.47 points. The Bund future gained 0.29 percent to 128.67 points.
Source: Stern
