The German stock market continued its recovery the previous day with slight gains on Wednesday. Overall, investors remained cautious, despite a better-than-expected Ifo business climate index for October. After initial losses, the Dax turned slightly positive, which most recently amounted to 0.2 percent to 14,909 points.
The German stock market continued its recovery the previous day with slight gains on Wednesday. Overall, investors remained cautious, despite a better-than-expected Ifo business climate index for October. After initial losses, the Dax turned slightly positive, which most recently amounted to 0.2 percent to 14,909 points.
“Investors on the Frankfurt Stock Exchange continue to see things on sight and don’t really trust yesterday’s stabilization (…),” wrote market expert Jürgen Molnar from broker Robomarkets. The geopolitical and monetary policy situation is still too uncertain.
On Monday, the leading German index slipped to its lowest level in seven months, but in the end it held important support at 14,800 points. A cautious upward countermovement followed on Tuesday. DAX prices above 15,000 points could improve the situation somewhat, say analysts.
In contrast to the Dax, the MDax of medium-sized companies lost ground by 1 percent to 24,172 points on Wednesday. The Eurozone leading index EuroStoxx 50 fell moderately by 0.2 percent.
The DAX received support from companies’ quarterly balance sheets. In the morning, Deutsche Bank, Porsche AG, Beiersdorf and the flavor manufacturer Symrise presented their reports for the third quarter. The shares of Deutsche Bank and Symrise then led the DAX – with price gains of 7 and 2.5 percent respectively.
At Deutsche Bank, analyst Anke Reingen from Bank RBC praised the good capitalization. There could also be higher dividends to shareholders here. With regard to Symrise, Charlie Bentley from Jefferies bank noted that the company had recently grown more strongly than expected.
Beiersdorf shares also benefited from the quarterly report, gaining 1.7 percent. Thanks to good business with the Nivea and Labello brands, the consumer goods group is becoming more optimistic for the current year. Porsche AG’s shares, however, lost 1.2 percent according to the quarterly figures.
Among the small caps, Traton lost 1.1 percent. VW’s commercial vehicle subsidiary has become more optimistic for the current year; However, this was already expected on the market. At asset manager DWS, the IT conversion will be significantly more expensive than previously expected, with the share price losing 2.5 percent.
The euro fell and was last trading at $1.0576. The European Central Bank (ECB) set the reference rate at $1.0632 on Tuesday afternoon.
On the German bond market, the current yield rose from 2.79 percent the day before to 2.84 percent. The Rex bond index fell by 0.12 percent to 123.32 points. The Bund future lost 0.31 percent to 128.42 points.
Source: Stern
