After its gains the day before, the Dax lacked the necessary strength for another clear upward movement on Wednesday. The stock market barometer ended trading down 0.07 percent to 16,733.05 points. The MDax of medium-sized companies recorded an increase of 0.72 percent to 27,353.02 points. Many market participants have already closed their books shortly before the end of the year, and trading activity is decreasing as Christmas approaches.
After its gains the day before, the Dax lacked the necessary strength for another clear upward movement on Wednesday. The stock market barometer ended trading down 0.07 percent to 16,733.05 points. The MDax of medium-sized companies recorded an increase of 0.72 percent to 27,353.02 points. Many market participants have already closed their books shortly before the end of the year, and trading activity is decreasing as Christmas approaches.
Last week, the Dax jumped to a record of 17,003 points, driven by interest rate cut signals from the US Federal Reserve for 2024. However, the European Central Bank (ECB) was much more defensive with a view to interest rate cuts in 2024 and thus slowed down the rally. Some experts currently see little room for further price gains. “It seems that the Dax has exhausted its short-term upward potential for the time being,” wrote Martin Utschneider from Finanzethos.
On the stock market, Orsted’s positively received information about the status of an offshore wind farm not only drove up the shares of the Danish wind power company, but also those of Siemens Energy at the top of the DAX with a plus of 2.9 percent. The contracts for the wind farm also include an agreement with Energy subsidiary Siemens Gamesa for the supply of certain offshore wind turbines.
DHL Group’s shares lost 1.9 percent at the end of the Dax. Disappointing business figures and a poor outlook from US competitor Fedex weighed on industry sentiment.
The outlook for the coming year was well received at United Internet and its subsidiary 1&1; both telecommunications providers expect better business in 2024. United Internet gained 12.3 percent at the top of the MDax. With an increase of 11.6 percent, the 1&1 shares took first place in the SDax small cap index.
The shares of ProSiebenSat.1, which were recently relegated to the SDax, slipped to the bottom of the small cap index after a weak outlook with a loss of 7.3 percent. Goldman Sachs analysts were bothered by the operating profit forecast, which was below market expectations.
The shares of the biofuel manufacturer Cropenergies stood out with a price jump of 68.9 percent. Südzucker wants to take over its subsidiary completely and then end its stock market listing. To this end, the food company announced a takeover offer that should be worth 11.50 euros in cash per share certificate. The Cropenergies shares ended trading at exactly this price. Südzucker ended trading 2.8 percent higher.
The European leading index EuroStoxx closed on Wednesday with minus 0.03 percent at 4533.82 points. The leading stock exchange in Paris gained slightly and the leading index in London rose significantly. Favorable inflation data from the United Kingdom proved to be a price driver there. In New York, the leading index Dow Jones Industrial and the technology-heavy Nasdaq 100 were slightly up at the close of trading in Europe.
The euro was trading at $1.0965 after the market closed. The European Central Bank (ECB) set the reference rate at 1.0944 (Tuesday: 1.0962) US dollars, which means the dollar cost 0.9137 (0.9122) euros.
On the bond market, the current yield fell from 2.06 percent the day before to 2.02 percent. The Rex bond index rose by 0.26 percent to 128.36 points. The Bund future recently rose by 0.39 percent to 137.86 points.
Source: Stern
