A cold shower for investors on the German stock market: Burdened by weak car values after disappointing figures from the industry, the Dax fell noticeably on Tuesday. In late trading, the loss on Wall Street widened in the wake of the falling New York Stock Exchange. Ultimately, the leading index lost 1.03 percent to 17,932.17 points. This resulted in a loss of around three percent for the month of April. The MDax of medium-sized stock exchange companies closed 0.30 percent lower on Tuesday at 26,264.39 points.
A cold shower for investors on the German stock market: Burdened by weak car values after disappointing figures from the industry, the Dax fell noticeably on Tuesday. In late trading, the loss on Wall Street widened in the wake of the falling New York Stock Exchange. Ultimately, the leading index lost 1.03 percent to 17,932.17 points. This resulted in a loss of around three percent for the month of April. The MDax of medium-sized stock exchange companies closed 0.30 percent lower on Tuesday at 26,264.39 points.
In view of many business figures and economic data as well as before the holiday break and the US Federal Reserve’s interest rate decision on Wednesday, investors were wary of the risk, it was said on the market.
After the inflation rate in Germany remained at its recently significantly lower level in April, as expected, inflation in the Eurozone showed a similar picture. However, core inflation continued to decline without the volatile prices for energy, food and beverages. In addition, the economy in the currency area grew again in the first quarter.
The economists at the Dutch bank ING spoke of the strongest growth since the start of the energy crisis in the third quarter of 2022 and now see the euro area on the road to recovery. At the same time, inflation remains moderate. The experts at Pantheon Macro added that inflation data should not change the expected first interest rate cut by the European Central Bank (ECB) in June.
There was also a significant downward trend in most of the most important European trading venues. The Eurozone leading index EuroStoxx 50 fell by around 1.2 percent. In Paris, the CAC 40 lost 1.0 percent. In contrast, the London Stock Exchange was largely stable. The New York leading index Dow Jones Industrial was around 0.9 percent lower at the end of European trading.
In the Dax, Mercedes-Benz and Volkswagen took the lowest places with price losses of 5.2 and 4.6 percent respectively. A trader commented that the Swabians’ numbers were even weaker than feared. The Wolfsburg-based company also recorded declining business development at the beginning of the year.
The euro was last traded at $1.0686. The European Central Bank set the reference rate at $1.0718 in the afternoon. On the bond market, the current yield rose from 2.57 percent the day before to 2.59 percent. The Rex bond index fell by 0.13 percent to 124.03 points. The Bund future lost 0.47 percent to 130.15 points.
Source: Stern
