Disappointing US growth data increased the initial downward pressure on the Dax on Thursday. The leading German index started trading with losses and increased them over the course of the day. At the close of trading it was 0.95 percent lower at 17,917.28 points. This meant that the Dax slipped back below the much-noticed 18,000 point mark. The MDax of medium-sized companies ultimately fell by 1.15 percent to 26,043.18 points on Thursday.
Disappointing US growth data increased the initial downward pressure on the Dax on Thursday. The leading German index started trading with losses and increased them over the course of the day. At the close of trading it was 0.95 percent lower at 17,917.28 points. This meant that the Dax slipped back below the much-noticed 18,000 point mark. The MDax of medium-sized companies ultimately fell by 1.15 percent to 26,043.18 points on Thursday.
US economic growth slowed significantly more than expected in the first quarter compared to the previous quarter. At the same time, core inflation has risen, wrote the economists at the Dutch bank ING. This makes an imminent rate cut by the US Federal Reserve Bank even less likely. Hargreaves Lansdown analyst Susannah Streeter said the data dented previous optimism in financial markets.
There was no really good economic news from Germany either. According to the GfK consumer climate, the purchasing mood here has recovered slightly, but is still poor.
The charts on the European and American trading venues also showed clear losses for the most part. The Eurozone leading index EuroStoxx 50 closed one percent in the red. In Paris there was a similarly significant decline, whereas prices in London rose slightly. The New York leading index Dow Jones Industrial lost a good 1.6 percent at the end of European trading, as did the technology-heavy Nasdaq 100.
Trading activity on the German market was dominated by the reporting season, which was gaining momentum. The shares of DAX bottom performer Symrise lost four percent. The flavors and fragrances manufacturer grew significantly in the first quarter. But competitor Givaudan has set the bar very high with its even more significant growth at the start of the year, wrote Jefferies analyst Charles Bentley.
In contrast, Deutsche Bank’s initially weak stocks ultimately rose at the top of the index by 8.2 percent. They reached their highest level since 2017. The turnaround in the price around lunchtime was caused by the analyst conference on the quarterly figures, at which the Frankfurt-based company announced more concrete plans for share buybacks.
Delivery Hero and Hellofresh took the top places in the MDax with price premiums of 6.4 and 3.7 percent respectively. While the meal delivery service promised even faster growth than before thanks to additional income, the meal kit provider was able to compensate for the subdued development in its core business with the range of ready-made meals.
In contrast, Befesa stocks lost 16.6 percent, reaching their lowest level since November. The recycling specialist’s outlook disappointed investors.
The euro was last traded at $1.0719. The European Central Bank had set the reference rate at $1.0720.
On the bond market, the current yield rose from 2.58 percent the day before to 2.61 percent. The Rex bond index fell by 0.08 percent to 123.99 points. The Bund future lost 0.32 percent to 129.68 points.
Source: Stern
