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Stock exchange in Frankfurt: DAX continues to recover on a record course

Stock exchange in Frankfurt: DAX continues to recover on a record course

The ongoing price recovery took the Dax one step further towards its record high on Tuesday. The leading German index ended another reporting season day up 1.40 percent at 18,430.05 points. It was the third winning day in a row.

The Dax is only around 0.7 percent short of the record of 18,567 points that it reached at the beginning of April. Stock marketers pointed out that there had recently been a lack of buyers in the area above 18,200 points. But now the Dax has clearly left this threshold behind. Another record is only a matter of time, wrote analyst Konstantin Oldenburger from the trading company CMC Markets.

The price jumps by Infineon and Zalando in particular proved to be a support for prices on Tuesday. The DAX had also recently benefited from investors’ increasing hopes that the US Federal Reserve would soon cut key interest rates.

In contrast, significant price losses by several reporting companies slowed down the MDax on Tuesday: the index of medium-sized stock exchange companies ultimately stood still with a loss of 0.02 percent to 26,561.47 points.

The Eurozone leading index EuroStoxx 50 was 1.2 percent higher. Things also improved significantly in Paris and London. In contrast, the US leading index Dow Jones Industrial and the technology-heavy selection index Nasdaq 100 only managed moderate increases at the end of trading in Europe.

In the Dax, Infineon led the list of winners with a recovery rally of almost 13 percent. The chip company’s stocks reached their highest level since the beginning of the year. The already unsurprising reduction in annual targets left shareholders cold. Jefferies analyst Janardan Menon assumes that possible further cuts would be very moderate at best. However, the current outlook could just as easily prove to be too conservative.

Despite mixed results, there were also many investors willing to buy at Zalando, as the price increase of 8.5 percent showed. The online fashion retailer was given tailwind above all by its surprisingly high profitability.

In contrast, Siemens Healthineers fell by 0.9 percent after the recent price stabilization. The overall improved business development of the medical technology group was offset by the weakness of the important imaging division.

In the MDax, Teamviewer was the biggest loser with minus 8 percent. The disappointing development in billings and margins was particularly criticized. However, the shares of the specialist for remote maintenance software were able to significantly contain their severe initial losses.

At index neighbor FMC, investors had to digest a price decline of 5.5 percent. The dialysis specialist’s only confirmed outlook was apparently not enough for investors after the strong start to the year. In addition, the shares had been doing well recently.

For Jungheinrich, things fell by 3.6 percent after the logistics service provider disappointed with its profitability. The defense electronics specialist Hensoldt was once again in the red last quarter despite the arms boom, which was punished with share price losses of 3.4 percent.

The biggest loser in the SDax small cap index was Salzgitter with a loss of 9.4 percent. Due to the weak German economy, the steel company significantly lowered its target for pre-tax profit – just seven weeks after announcing the outlook, as Baader analyst Christian Obst noted critically.

In contrast, the battery manufacturer Varta conquered the top of the index thanks to price gains of 14.4 percent – regardless of the upcoming departure from the SDax due to the failure to “publish the audited annual financial report on time” after a hacker attack.

The euro traded little changed at $1.0768. The European Central Bank (ECB) had previously set the reference rate at $1.0766. On the bond market, the current yield on German securities fell from 2.50 percent the day before to 2.49 percent. The Rex bond index rose by 0.08 percent to 124.69 points. The Bund future gained 0.27 percent to 131.79 points.

Source: Stern

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