Amid strong Nvidia figures and the dwindling prospects of interest rate cuts in the USA, the DAX closed just above the mark. As in the days before, the leading index remained in the range of 18,600 to 18,900 points, crossing the finish line 0.06 percent higher at 18,691 points. The MDax managed to rise by 0.18 percent to 27,194 points.
The surprisingly good mood in the US economy once again dampened investors’ hopes of interest rate cuts. The overall index rose to its highest level in two years, while economists had expected a slight decline.
Nvidia record run
The previous evening, the minutes of the US Federal Reserve meeting did not contain the hoped-for signals of an imminent reduction in the key interest rate. According to NordLB, the level of uncertainty about the future course of its monetary policy has therefore increased somewhat. “While the market was generally certain that interest rate cuts could be expected this year, other options are now becoming more present again,” said NordLB analyst Constantin Lüer.
In contrast, there was once again enthusiasm about Nvidia’s development. The flagship company for artificial intelligence once again exceeded expectations and announced a significant dividend increase. There was then another record price not only for Nvidia shares, but also on the US technology exchange Nasdaq. In New York, this depended on the weak standard values in the Dow Jones Industrial.
Nvidia’s continued strong business development also boosted the European technology sector. Shares in chip manufacturer Infineon rose by one percent. In the broader circle, shares in Aixtron, Elmos and Süss Microtec gained between 2.8 and 5.2 percent.
However, the MTU share was the leader in the DAX, rising by 3.2 percent in the wake of a strong start to the year by its competitor Rolls-Royce. Real estate stocks, on the other hand, were avoided due to interest rate uncertainty: Vonovia was one of the biggest losers in the DAX, losing two percent.
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In the MDax, an announced takeover caused Gerresheimer’s recently weakening shares to jump by 12.7 percent. The specialty packaging manufacturer wants to expand its pharmaceutical business with an 800 million euro takeover in Italy.
CTS Eventim shares jumped by almost five percent after the event marketing company’s quarterly figures, and even reached a record high at one point. The increase in operating profit exceeded market expectations. The US bank JPMorgan said the first quarter of the year was strong. The annual outlook is still conservative.
Otherwise, there were still price-moving analyst comments in the MDax: a buy recommendation from the British bank HSBC drove up Jungheinrich shares by five percent. Carl Zeiss Meditec shares, however, fell by 2.7 percent after investment bank Goldman Sachs recommended they be sold.
The EuroStoxx 50, which covers shares from the eurozone, rose by 0.25 percent to 5038 points. In Paris, the leading index recorded slight gains, while in London it fell by 0.4 percent.
The euro last cost 1.0827 dollars. The European Central Bank had set the reference rate at 1.0854 (Wednesday: 1.0830) US dollars. The dollar therefore cost 0.9213 euros.
On the bond market, the current yield rose from 2.59 percent the day before to 2.62 percent. The Rex bond index fell by 0.16 percent to 123.94 points. The Bund future lost 0.44 percent to 129.90 points.
Source: Stern
