The Dax rose on Wednesday ahead of important monetary policy decisions in the USA. In the afternoon, the leading German index was up 0.69 percent at 14,912.71 points. This means that it is clearly above its low since March of 14,630 points, which was reached the previous week. The MDax of medium-sized companies recently recorded an increase of 0.19 percent to 24,085.46 points. The Eurozone leading index EuroStoxx 50 gained 0.8 percent.
The Dax rose on Wednesday ahead of important monetary policy decisions in the USA. In the afternoon, the leading German index was up 0.69 percent at 14,912.71 points. This means that it is clearly above its low since March of 14,630 points, which was reached the previous week. The MDax of medium-sized companies recently recorded an increase of 0.19 percent to 24,085.46 points. The Eurozone leading index EuroStoxx 50 gained 0.8 percent.
The Dax ended October with a loss of around 3.8 percent. It was the third month of losses in a row. The geopolitical concerns along with high yields in the bond market are considered to be the main reasons for the losses in the stock market.
There was hardly any impetus from the reporting season here on Wednesday. Some economic data from the USA was of more interest before the US Federal Reserve’s interest rate decision was expected in the evening after the European stock market closed.
The plans for new issues of US government bonds by the country’s Ministry of Finance caused a slight improvement in sentiment. The planned increase was slightly lower than economists expected. The US government’s borrowing has recently come into greater focus.
Utilities stocks such as RWE and Nordex were initially dragged down on Wednesday by news from the Danish wind power company Orsted, but later turned positive in some cases because Orsted was more concerned with company-specific problems than industry-specific ones. The group is discontinuing two large wind power projects in the USA.
Insurers were in demand as beneficiaries of high interest rates. Hannover Re and Munich Re gained more than two percent in some cases. In the European media sector, disappointing sales figures from industry heavyweight Wolters Kluwer caused a setback. On the German stock market, ProSiebenSat.1 and RTL Group lost up to 2.4 percent.
The euro cost $1.0524 in the afternoon. The European Central Bank last set the reference rate on Tuesday afternoon at 1.0619 (Monday: 1.0605) dollars.
On the bond market, the current yield rose from 2.79 percent the day before to 2.81 percent. The Rex bond index fell by 0.18 percent to 123.58 points. The Bund future gained 0.30 percent to 128.88 points.
Source: Stern
