The 14,000 point level has become a key resistance.
(Photo: Bloomberg Creative/Getty Images [M])
Dusseldorf On the German stock market, the struggle of the leading index Dax with the mark of 14,000 points is still not decided. On Wednesday morning, the Frankfurt stock exchange barometer was up 0.3 percent at 13,961 points after rising to 14,033 points at the start. On Tuesday, the Dax closed 1.8 percent down at 13,920 points.
“The early summer lethargy is spreading on the German stock market,” comments analyst Jochen Stanzl from CMC Markets. Investors have come to terms with the fact that there will be no quick end to the war in Ukraine. At the same time, they had braced themselves for higher inflation for a longer period of time and faster rate hikes.
So the burdens are priced in, but there is no catalyst for a sustainable jump upwards. As a result, the Dax has been moving sideways for a week and a half.
“The 14,000 remains a highly competitive brand,” explains Thomas Altmann, portfolio manager at asset manager QC Partners. In the past eight trading days, the Dax has closed four times above the psychologically important thousand mark and four times below it.
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On Wednesday, among other things, the economic figures from Germany supported the courses. Despite the corona crisis and the war in Ukraine, gross domestic product increased by 0.2 percent quarter-on-quarter between January and March, as the Federal Statistical Office confirmed an earlier estimate on Wednesday. The economy thus prevented a slide into recession.
It is fitting that analysts have continued to raise their earnings expectations for companies since the beginning of the year despite the adversity, explains Stanzl: “While a historic rise in interest rates lowered the valuation multiples on the market, the profitability of companies improved at the same time.”
This is a good sign for the fundamental stability of the entire stock market. “However, that doesn’t mean that stocks can’t correct further,” warns Stanzl.
Here is a look at the USA. There, on Tuesday, Snapchat operator Snap’s profit warning pulled the entire market down, leaving the broad S&P 500 index below the 4000 mark. A new wave of sales should also hit the German market.
>> Read about this: Prices on US stock exchanges are likely to fall further: experts expect a second wave of sales
After the market closes, investors therefore look at the minutes of the last meeting of the US Federal Reserve, which will be published in the evening (8 p.m. German time). At the beginning of May, the monetary authorities increased the key interest rate by 50 instead of 25 basis points for the first time in 22 years.
The market is now hoping for further clues on the future interest rate path – and the possibility of a rate hike of 75 basis points. Federal Reserve Chairman Jerome Powell recently warned the US public that “cutting inflation to 2 percent will also bring some pain.”
Individual values in focus
Eon and RWE: The two energy companies are recording price gains: Eon is up more than one percent, RWE’s paper more than two. They are recovering somewhat from losses the day before, when a press report about an imminent special tax on high profits from electricity producers in Great Britain weighed heavily on the industry.
Nordex: The wind power company’s shares fall more than 16 percent. After the close of trading on Tuesday evening, Nordex announced that it would only expect to be in the black this year in the best-case scenario. Instead of a profit margin (Ebitda margin) of one to 3.5 percent, the board now expects minus four to zero percent, the SDax company announced.
CTS Eventim: In the MDax, the shares of the ticket marketer and event organizer fall by four percent. The French investment house Exane BNP advises to sell.
Aroundtown: The real estate company grew in the first quarter. The core value FFO I, which is decisive in the industry, climbed by three percent to EUR 89.3 million. The Board of Directors reaffirmed its goals for the year. The share still loses 1.7 percent.
Ex-dividend: The following companies are trading today with a dividend discount: Hugo Boss, Baywam Knorr Bremse.
Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.