The Dax, which was recently hungry for records, took a break on Monday. After the “tremendous increase”, there is now a bit of a lack of inspiration, wrote analyst Konstantin Oldenburger from the trading company CMC Markets. The leading German index closed 0.16 percent lower at 18,742.22 points. However, he remains within sight of his record of almost 18,846 points from Friday. It ended last week with a total increase of 4.3 percent – it was the best week since November last year. The MDax of medium-sized stock exchange companies ultimately gained 0.30 percent to 26,823.94 points on Monday.
Stock prices in Europe and the USA also moved little. The Eurozone leading index EuroStoxx 50, like the markets in Paris and London, ended with a slight loss. The New York leading index Dow Jones Industrial showed just as little movement at the end of European trading as the technology-heavy Nasdaq 100.
As the week progresses, investors still have to classify many of the company’s quarterly figures. In addition, US inflation data will be released on Wednesday as a key factor for further monetary policy developments. It is still uncertain when the US Federal Reserve will begin cutting interest rates.
Automotive stocks were in demand across Europe at the beginning of the week, including in the Dax, where Porsche AG and Continental were ahead with price gains of three and almost two percent respectively. Among the biggest losers were the shares of chip manufacturer Infineon, which were 2.2 percent weaker after their price gains in the past few days. The bottom of the DAX, Deutsche Börse, recorded a loss of 2.4 percent after a recent good run.
In the MDax, the internet company United Internet took the lead with a gain of 6.7 percent. Analyst Karsten Oblinger from DZ Bank referred to good news from the Federal Network Agency. The extension of existing frequency usage rights for Deutsche Telekom, Vodafone and Telefonica involves, among other things, an obligation for Telefonica to continue the transfer of frequencies to the United Telekom subsidiary 1&1. 1&1 gained 4.6 percent in the SDax small cap index.
At high lows it was enough for a price increase of 1.4 percent. The construction company earned slightly more in the first quarter of 2024 than in the same period last year and confirmed its profit outlook. There were also quarterly reports from some SDax companies. The most noticeable were Ceconomy, which ended up winning 6.2 percent. The electronics retailer expects its operating profit in the current financial year to be better than analysts.
The euro recently fell to 1.0795 US dollars, just below the 1.08 dollar mark. The European Central Bank (ECB) had previously set the reference rate at $1.0795. On the bond market, the current yield rose from 2.52 percent on Friday to 2.57 percent. The Rex bond index fell by 0.16 percent to 124.36 points. The Bund future lost 0.02 percent to 130.85 points.
Source: Stern
