Investors on the German stock market are holding back after the recent highs. Eyes are now turning to the upcoming figures from Europe’s largest software company.
Before the publication of many company figures this week, investors on the German stock market held back at the start of the week. The Dax fell to its daily low in late trading in the wake of the diving US stock markets and ended 1.00 percent lower at 19,461.19 points. On Thursday, the leading index reached a record high of around 19,675 points. The MDax of medium-sized stock exchange companies lost 0.67 percent to 27,152.77 points on Monday.
“In recent weeks, the market has often seen a strong end to the week, followed by profit-taking on Monday. So the decisive movements are likely to take place in the middle of the week this time too,” believes analyst Konstantin Oldenburger from CMC Markets. He sees the impetus for this in the current reporting season.
The software giant SAP will present its quarterly figures this Monday evening after the US stock market closes. The stocks with the heaviest weighting in the DAX closed at minus 1.0 percent. At SAP, a lot of optimism has already been priced into the price level and the shares of the largest European software manufacturer have made up a large part of the overall market development in the last few months, said stock market expert Andreas Lipkow. Now any negative surprise could have a major impact on the overall market, he warned.
The other leading European stock exchanges also fell on Monday. The Eurozone leading index EuroStoxx 50 closed with a loss of 0.9 percent at 4,941.22 points. The trading venues in Zurich and London recorded losses of around half a percent each. The US leading index Dow Jones Industrial was 0.7 percent lower at the close of trading in Europe.
The weakest DAX stock was the Sartorius preferred share, which fell by 4.8 percent after its recent recovery. On Thursday, the shares had jumped by almost 17 percent following the pharmaceutical and laboratory supplier’s quarterly report. The company had signaled an increasing stabilization of business development despite a further decline in sales and earnings.
The shares of the semiconductor manufacturer Infineon lost 2.6 percent after a downgrade by Morgan Stanley. Analyst Lee Simpson pointed to challenges posed by the auto industry’s problems.
The investment house Jefferies received a buy recommendation for the shares of the reinsurer Munich Re, whose price fell by 3.0 percent. The shares have been running strong and only reached a record high last week.
Among the top values in the MDax were the titles of the defense electronics manufacturer Hensoldt with a plus of 3.2 percent. Bank of America upgraded it to “Buy”. The stocks of tank gear producer Renk in the SDax small cap index rose by 0.9 percent following a buy recommendation from Redburn.
The euro last cost 1.0821 US dollars. The European Central Bank (ECB) set the reference rate at $1.0853 in the afternoon. The dollar therefore cost 0.9214 (0.9219) euros.
On the bond market, the current yield rose from 2.17 percent on Friday to 2.20 percent. The Rex bond index fell by 0.16 percent to 126.50 points. The Bund future lost 0.75 percent to 133.12 points.
Source: Stern
