ZInvestors on the German stock market were hesitant to make any major moves due to the big drop on the futures exchanges. However, the important 18,000 point mark on the Dax index remained within reach. Around midday, Germany’s leading index rose 0.26 percent to 17,989.20 points.
The M-Dax, an index of mid-market stocks, came to a near standstill around the same time, up 0.05 percent at 26,275.81. The eurozone’s leading EuroStoxx 50 index rose 0.36 percent to 5,011.33.
“Today’s triple expiration jeopardizes the rise of the German stock index,” writes stock market expert Jurgen Molnar of Robomarkets. The day before, an unexpected rise in US producer prices revived fears about inflation and further dampened hopes of lower interest rates. After another all-time high, the Dax closed below 18,000.
Only a slight majority of the market now expects the first US interest rate cut in June, according to Jochen Stanzl of CMC Markets. Tensions are rising ahead of the US Federal Reserve’s next interest rate decision next week as people hope for major signals about possible policy easing.
In the Dax, Vonovia’s shares fell to the bottom of the index on an annual basis, where they continued their streak of losses with a discount of about six percent. According to the trader, the adjusted dividend policy and changes in the most important indicator had a negative impact on the forecast. Other real estate stocks also came under pressure.
Meanwhile, concerns over demand have overshadowed chip share prices, with Infineon, also one of the weakest DAX stocks, shedding more than five percent. According to a report by news agency Bloomberg, the Chinese government is trying to encourage domestic electric vehicle manufacturers to buy more domestic electronic chips to strengthen China’s semiconductor industry and reduce dependence on the West.
According to the final data, Hellofresh rose in price by almost eleven percent, taking first place in the M-Dax rating. Some investors may be relieved that the meal kit retailer didn’t announce any further dramatic news. Last week the price reached a record low, also due to the loss of medium-term targets. William Woods of Bernstein Research also praised free cash flow.
Meanwhile, strong guidance and a dividend hike lured investors into shares of IT services provider Bechtle, which rose four percent.
Agricultural trader Baywa’s canceled dividend has caused discontent at the exchange’s back row, with shares falling more than nine percent. Varta has hit a record low as the battery company now delays its annual financial statements and general meeting following a cyber attack in February. More recently, newspapers limited the decline to two and a half percent.
Shares in steel group Salzgitter were trading almost two percent lower. Stock marketers lamented that 2023 performance was slightly weaker than expected, and the outlook and investment theme also sparked debate.
Source: Frantfurter Allgemeine
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