The Dax ran out of steam on Tuesday, just before reaching a record high. In the morning, the German leading index came within about 37 points of its high of mid-May at just under 18,893 points. But there the air became too thin. The Dax turned downwards and closed 0.52 percent lower at 18,677.87 points at the end of trading.
The DAX received little support from the five heavyweights SAP, Siemens, Airbus, Deutsche Telekom and Allianz, whose share prices fell. Here, the losses reached as much as almost 2 percent for SAP.
Despite the setback of the DAX, stock market traders still see it as being on an upward trend. “It currently looks as if the bulls want to quietly creep up on the all-time high with the German stock index,” wrote strategist Jürgen Molnar from the broker Robomarkets. The pessimists on the market have obviously capitulated, and the DAX seems to be able to only rise, apart from brief setbacks.
The MDax of mid-sized companies was also unable to hold on to initial gains on Tuesday and ended up falling by 0.54 points to 27,134.66 points.
At the top of the DAX, Siemens Energy gained almost 4 percent, reaching its highest level in almost three years. This year, with a gain of almost 124 percent, it has outshone all other DAX stocks. Market concerns about the energy technology manufacturer’s financial situation have subsided, and the wind power industry is picking up speed again, wrote analyst Oliver Wojahn of MWB Research.
Symrise shares gained 1 percent after Deutsche Bank recommended buying the company. Analyst Virginie Boucher-Ferte came away from the investor meeting with the flavor manufacturer’s CFO with a positive impression. Everything is going in the right direction, according to the expert.
In the MDax, Redcare Pharmacy extended its recent recovery by more than 5 percent. Analyst Martin Comtesse from the investment bank Jefferies sees the setback, which caused the online pharmacy’s shares to plummet by 37 percent from their annual high in April to a week ago, as a buying opportunity.
The Eurozone’s leading index, the EuroStoxx 50, lost 0.57 percent to 5030.35 points. The leading indices in Paris and London fell even more. In New York, the Dow Jones Industrial was down 0.4 percent at the end of European trading.
On the foreign exchange market, the euro rate continued its recovery and rose to 1.0876 US dollars. The European Central Bank (ECB) had set the reference rate at 1.0882 dollars in the afternoon.
On the bond market, the yield on bonds fell from 2.66 percent on Monday to 2.62 percent. The Rex bond index rose by 0.18 percent to 123.96 points. The Bund future fell by 0.21 percent to 130.00 points in the evening.
Source: Stern
