Two days before the European Central Bank’s (ECB) interest rate decision and after a brilliant price rally, investors played it safe. The Dax, which recently reached seven record highs in a row, closed 0.1 percent lower at 17,698.40 points. The record hunt had already taken a break the day before. The MDax of medium-sized stock exchange stocks rose by a few points to 25,995.47 points.
Two days before the European Central Bank’s (ECB) interest rate decision and after a brilliant price rally, investors played it safe. The Dax, which recently reached seven record highs in a row, closed 0.1 percent lower at 17,698.40 points. The record hunt had already taken a break the day before. The MDax of medium-sized stock exchange stocks rose by a few points to 25,995.47 points.
The ECB is expected to leave key interest rates for the eurozone unchanged on Thursday. According to observers, the central bank’s new projections for inflation and growth in the coming years hold potential for a surprise and therefore larger price fluctuations.
On Friday, the Dax reached a historic high of a good 17,800 points. Since then, the stock market barometer has stagnated. The upcoming appearances by Federal Reserve Chairman Jerome Powell before the US Congress could also end the bull market.
Bayer shares lost 7.6 percent, falling to their lowest level in almost 19 years. The pharmaceutical and agrochemical group initially wants to overcome its difficult situation without selling its division, despite high debts. The shares of the DHL Group suffered a downgrade by the bank Societe Generale at minus 1.7 percent.
In the MDax, the shares of the dialysis specialist FMC jumped 11.5 percent. The trigger was study data from drug manufacturer Novo Nordisk on a drug against chronic kidney disease. Since the effectiveness of the agent fell short of expectations, FMC shares benefited. At the top of the Dax, Fresenius’ shares rose by 3.8 percent because the healthcare group has a stake in FMC.
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Losses predominated on Europe’s most important stock exchanges. The EuroStoxx 50, the leading index for the euro zone, fell by 0.4 percent to 4893.07 points. Paris’s Cac 40 also closed slightly lower, while London’s FTSE 100 was little changed. On Wall Street, the Dow Jones Industrial was recently down 0.3 percent.
The euro traded little changed in the evening at 1.0866 US dollars compared to the previous day. The ECB had previously set the reference rate at $1.0849. As on the previous day, the current yield on the bond market was 2.43 percent. The Rex bond index fell by 0.02 percent to 125.09 points. The Bund future gained 0.63 percent to 133.68 points in the evening.
Source: Stern
