Investors remained cautious after the latest DAX record high on Monday. The leading German index closed 0.38 percent lower at 17,746.27 points. The US inflation data for February on Tuesday is already casting its shadow, as it is an essential component for the US Federal Reserve’s monetary policy decisions. The MDax of medium-sized stocks rose by 0.2 percent to 26,036.34 points.
Investors remained cautious after the latest DAX record high on Monday. The leading German index closed 0.38 percent lower at 17,746.27 points. The US inflation data for February on Tuesday is already casting its shadow, as it is an essential component for the US Federal Reserve’s monetary policy decisions. The MDax of medium-sized stocks rose by 0.2 percent to 26,036.34 points.
On Thursday, the Dax reached a high of 17,879 points according to the European Central Bank’s inflation forecasts. On Friday, according to job data from the USA, it remained largely stable. “The market used today to digest the sharp rise after the ECB meeting and perhaps convince a few late-comers to take part in the rally,” commented market analyst Konstantin Oldenburger from CMC Markets.
“The surprisingly high January figures on US inflation have caused unrest on the markets,” wrote Commerzbank experts with a view to the upcoming February data. It will therefore have to be seen to what extent these were one-off effects or not. You yourself expect consumer prices to rise quite sharply again. If that were to happen, it would likely confirm the Fed’s wait-and-see attitude and probably disappoint the market.
Given the weakness of US tech stocks, Infineon was among the bottom performers with minus 1.7 percent in the Dax, Aixtron with losses of 2.7 percent in the MDax and Süss Microtec with discounts of 9.9 percent in the SDax.
Real estate stocks such as Vonovia, Patrizia and Grand City Properties continued to benefit from the prospect of inflation falling faster than expected in the euro region and were among the favorites on the German market.
With a plus of 5.1 percent, LEG was another real estate company that was among the top values. Some better annual figures than feared as well as a higher-than-expected dividend proposal provided additional impetus here. According to detailed figures, the securities of the financial service provider Hypoport, which is heavily focused on real estate loans, rose by 3.8 percent over the past year.
There was some uncertainty at Continental following the imminent departure of CFO Katja Garcia Vila. She informed the supervisory board that she was not available for a further contract extension. Your contract will therefore expire at the end of the year. The auto supplier’s shares then fell by 4.5 percent to the end of the DAX.
The Eurozone leading index EuroStoxx 50 lost 0.62 percent to 4930.42 points. The Cac 40 in Paris and the FTSE 100 in London barely moved. In the USA, the Dow Jones also did not move at the European market close, while the technology-heavy Nasdaq 100 continued to take profits.
The euro fell slightly and was last trading at $1.0927. The European Central Bank set the reference rate at 1.0926 (Friday: 1.0932) dollars. On the bond market, the current yield fell from 2.32 percent on Friday to 2.31 percent. The Rex bond index rose by 0.01 percent to 125.76 points. The Bund future fell by 0.26 percent to 133.37 points.
Source: Stern
