The prospect of lower electricity prices for the German economy and the companies’ predominantly solid quarterly balance sheets were well received on the stock market on Thursday. The Dax continued its gains from the previous day and rose by a further 0.81 percent to 15,52.54 points, its highest level in almost four weeks.
The prospect of lower electricity prices for the German economy and the companies’ predominantly solid quarterly balance sheets were well received on the stock market on Thursday. The Dax continued its gains from the previous day and rose by a further 0.81 percent to 15,52.54 points, its highest level in almost four weeks.
This makes it more likely that the German leading index will break out of the downward trend that began in August. In November there was already a DAX gain of 3.6 percent.
As in the last two days, the second stock market league with the MDax performed better than the first league with the Dax. The index of medium-sized stocks gained 1.69 percent and reached 25,819.66 points, its highest closing price since the end of September.
Stock marketers also attributed the price gains to the federal government’s agreement on an electricity price package. First of all, a reduction in electricity tax for the years 2024 and 2025 should be regulated by law. The main beneficiaries of this would be companies from the chemical industry: BASF, for example, was at the top of the DAX with a gain of 2.1 percent. In the MDax, Wacker Chemie gained 3.7 percent.
With a view to the quarterly figures, as on Wednesday, the positive price reactions predominated. Merck KGaA took second place in the DAX with an increase of 3.9 percent, driven by an improved order situation in the Life Sciences segment. According to the business figures, the consumer goods manufacturer Henkel and the chemicals retailer Brenntag rose by 3.5 and 1.6 percent respectively.
The DAX companies Hannover Re and Rheinmetall are different, whose shares reacted to the quarterly reports with losses of 2.3 and 0.9 percent respectively. At Hannover Re, profits in property and casualty business were disappointing. Investors took profits on the Rheinmetall share after it narrowly missed a record high.
In the afternoon, Siemens Energy rose significantly and finished trading at the top 6.3 percent higher. The trigger was a media report according to which Siemens, Siemens Energy and the federal government had agreed in principle on state guarantees for Siemens Energy projects.
Europe’s stock markets rose broadly on Thursday. The Eurozone leading index EuroStoxx 50 rose by 1.21 percent to 4229.20 points. The Paris Cac 40 rose similarly, the London FTSE 100 somewhat less significantly. The US leading index Dow Jones Industrial stood still at the European market close.
In foreign exchange trading, the euro barely moved, most recently at 1.0710 US dollars. The European Central Bank (ECB) had previously set the reference rate at $1.0691.
On the German bond market, the current yield rose from 2.65 percent the day before to 2.66 percent. The Rex bond index fell by 0.05 percent to 124.67 points. The Bund future lost 0.25 percent to 130.45 points in the evening.
Source: Stern
