The Dax remained just below its record high on Wednesday. The leading German index closed up 0.10 percent to 17,716.71 points. The MDax rose by 0.63 percent to 26,159.91 points.
The Dax remained just below its record high on Wednesday. The leading German index closed up 0.10 percent to 17,716.71 points. The MDax rose by 0.63 percent to 26,159.91 points.
Investors remained confident, but at the same time held back from making investments. Job data from the US private sector and the eagerly awaited speech by Jerome Powell, President of the US Federal Reserve, did not provide any lasting stimulus. Now the interest rate decision by the European Central Bank (ECB) is coming into focus. On Thursday, the euro’s monetary authorities will decide on the level of key interest rates, but nothing is likely to change for the time being. Rather, it is hoped for indications as to when easing can be expected to begin.
“First a rally, then a standstill – the current development in the German stock index is not the worst prerequisite for a continuation of the upward movement,” commented market analyst Konstantin Oldenburger from CMC Markets on the last three trading days. The Dax is only around 300 points away from the next hurdle, the 18,000 point mark, so new highs are only a matter of time, according to Oldenburger. However, it shouldn’t go below 17,620 points, otherwise there would be a risk of further losses.
Powell’s statements brought little surprise. There are still no signs of a rapid reduction in interest rates in the USA. Monetary policy is only likely to be relaxed later this year, the Fed chief confirmed, because initially there needs to be more confidence that inflation will continue to decline permanently. Other central bankers have recently made similar statements. The US labor market service provider ADP’s job data for February was slightly weaker than expected, meaning that recent concerns that Powell could question the generally expected interest rate cut for June were not given any impetus.
On the corporate side, the reporting season in particular set the tone. There was also a takeover rumor in the index of medium-sized stocks at the close of trading. The Bloomberg news agency reported, citing people in the know, that the US investment company KKR wanted to take over the wind and solar park operator Encavis for more than two billion euros. This caused the share price to rise by 18.1 percent in the last minutes of trading.
According to the annual figures presented and a “reassuring outlook” according to the US bank JPMorgan, Symrise was the DAX favorite with a plus of 6.6 percent. The flavors and fragrances manufacturer wants to become more profitable again in 2024.
However, the DHL Group’s shares were punished after weak figures and disappointing forecasts for further business development. With minus 6.3 percent, they held the “red lantern” in the leading index.
For Aixtron it fell by 1.8 percent. Here, Bloomberg reported, citing people familiar with the matter, that the US government was urging countries such as Germany, the Netherlands, South Korea and Japan to further restrict China’s access to semiconductor technology.
One of the index changes announced the evening before also caused a stir: investors were surprised by the impending exclusion of the commercial kitchen supplier Rational from the MDax. He had not complied with an important criterion of the German stock exchange. The papers lost 2.7 percent.
The Eurozone leading index EuroStoxx 50 gained 0.46 percent to 4915.49 points and the national stock exchanges in Paris and London also rose. In the USA, the Dow Jones Industrial rose by 0.6 percent at the European market close and the Nasdaq indices also rose.
The euro passed the $1.09 mark. By early evening it was trading at $1.0911. The ECB set the reference rate at 1.0874 (Tuesday: 1.0849) dollars. The dollar therefore cost 0.9196 (0.9217) euros.
On the bond market, the current yield fell from 2.43 percent the day before to 2.41 percent. The Rex bond index rose by 0.12 percent to 125.24 points. The Bund future lost 0.10 percent to 133.48 points.
Source: Stern
