Dusseldorf The upward trend of the leading German index took a break on Thursday. At the end of trading, the Dax was down 0.6 percent at 15,796 points. “After the series of highs for the year, the momentum has been lost a bit,” says Thomas Altmann from QC Partners. “The impulses of the reporting season are currently not sufficient to carry the Dax further up.”
Disappointing company figures had recently dampened investor sentiment. Tesla generated a profit margin of 19.3 percent at the start of the year, analysts had expected 22.4 percent. On Thursday, the papers from BMW, Volkswagen and Mercedes-Benz in the Dax each lost between three and 3.8 percent.
However, the psychologically important mark of 16,000 points remains within reach. On Wednesday, the Dax closed 0.1 percent up at 15,895 points – just 21 points below the high for the year so far.
Historically, however, a breakout above 16,000 points has not been sustainable so far. The leading German index did not end a trading month above this level. If that were to change, it would be a surprise.
“The further direction of march on the stock markets will be decided in the coming weeks by the current reporting season,” said analyst Christian Henke from Broker IG. “After a promising start, there have now been a few disappointments.”
The Federal Statistical Office published the German producer prices for March even before trading began. Accordingly, prices have risen by 7.5 percent compared to the same month last year, in February it was still 15.8 percent. It was the sixth straight decline.
The development is an indication “that the inflationary pressure is decreasing significantly and rapidly,” said the scientific director of the Institute for Macroeconomics and Business Cycle Research (IMK), Sebastian Dullien. Producer prices are considered an important leading indicator for the further development of inflation, which in turn is decisive for the monetary policy of the European Central Bank (ECB).
According to ECB President Christine Lagarde, there is still “a little way to go” in view of the high inflation. The length depends on a number of factors, including the impact of the recent banking turmoil. “We have inflation that is too high compared to our target – and has been for some time,” she said.
Investors continue to appear unsettled with regard to the further course of action by the US Federal Reserve. New York Fed President John Williams said recently that the inflation rate remains a problem and the Fed will act to bring it down. A further rate hike of 25 basis points is currently expected in the coming month. The interest rate decision could also point the way for the Dax. At the latest at the next Fed meeting in May, the Dax will have to decide whether or not to exceed the 16,000 point mark, predicted Konstantin Oldenburger from CMC Markets.
The US Federal Reserve published its “Beige Book” economic report on Wednesday. Accordingly, US economic activity has changed little in recent weeks, and expectations for future growth have also remained largely unchanged.
Look at the euro and oil
Oil prices fell further on Thursday. A barrel (159 liters) of North Sea Brent for delivery in June last cost 81.23 US dollars. The price of a barrel of American West Texas Intermediate (WTI) grade for delivery in May fell to $77.
The euro is stable below the USD 1.10 mark. In the afternoon, the common currency cost $ 1.0975. The one-year high of just over $1.10, marked late last week, remains within reach.
Look at individual values
Daimler trucks: The shares are up 1.8 percent in the Dax after the Swedish truck manufacturer Volvo raised its market expectations. Volvo now expects sales of heavy trucks in Europe and North America to be 320,000 instead of 300,000 in 2023.
Sartorious: The laboratory equipment supplier recorded a 22.1 percent decline in Ebitda to EUR 272 million for the first quarter. Nevertheless, the group confirmed its forecast for the year. “The basic growth drivers in our markets are still positive, which has been shown for many years by our robust double-digit growth rates, regardless of special effects,” says CEO Joachim Kreuzburg. The papers fall by 11.4 percent.
SiemensEnergy: In a consortium with the Spanish company Dragados Offshore, the energy technology group has received several orders from the Dutch power grid operator Tennet with a total volume of almost seven billion euros. It is about the delivery of technology for three grid connections in the German North Sea, as Siemens Energy announced on Thursday. The papers still lose 0.7 percent.
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