Dusseldorf On the German stock market, the leading index continues to try to bottom out. The Dax rose in the afternoon by 1.3 percent to 14,357 points, an increase of more than 200 points.
The stock exchange barometer ended yesterday’s trading day unchanged at 14,153 points. What was interesting about the course of trading was that below 14,000 points there is obviously a lot of interest in buying. The Dax slipped below this round mark twice, but only for a few minutes. The daily low was 13,991 points.
Michael Hartnett, chief strategist for global equities at Bank of America (BofA), takes a similar view. The BofA’s “Bull & Bear” index is at 2.0 points and is therefore on the threshold of a buy signal, wrote the US investment bank’s expert.
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The technical situation on the German stock market is currently constructive, although the medium-term downward trend since the beginning of the year is still intact. That would only change if there were sustained courses above 15,000 points, which the Dax only just missed as part of its 2500-point rally from the beginning to the end of March this year. 14,952 points was the highest on March 29th.
And these gains from the so-called bear market rally, i.e. rising prices within a medium-term downward trend, have been constructively processed by the leading German index since the end of March. The bottom of this short-term down move is 13,887. Technical analysts call this a minimal correction, which is common after such a dynamic rally of around 2500 points.
However, the Dax should not fall below this mark of 13,887 points if possible. Otherwise, the bottom attempt would have failed and the downtrend is likely to last longer than some investors would like. On the other hand, if this mark holds, there should be another attempt towards 15,000 points in the coming trading days.
In the current situation on the capital market, today’s price gains are accompanied by a pause in the bond market. In contrast to yesterday, Tuesday, yields on ten-year government bonds in Germany and on the other side of the Atlantic are no longer climbing to new multi-year highs. After 2.971 percent the day before, this value for US Treasuries is currently 2.8686 percent. Bunds are currently up 0.854 percent after 0.952 the day before.
The first major disappointment of the US reporting season has had little impact on the German stock market. Streaming service Netflix has reported a drop in subscribers for the first time in a decade. The customer base had shrunk by 200,000 subscribers in the first quarter, the company announced after the market closed on Tuesday evening in the USA.
Netflix shares fell more than 25 percent in after-hours trading on Wall Street and also lost a quarter of their value on the German trading platform Xetra. In this wake, other streaming services are also giving way, such as Disney plus with a minus of more than four percent on the German market.
Investors are eagerly awaiting the publication of the “Beige Book” after the stock market close in Germany. From the US Federal Reserve’s economic report, they hope to draw conclusions about the pace of the expected interest rate hikes.
In the past few weeks, Fed executive James Bullard in particular had advocated stronger steps. The market is expecting a 50 basis point hike on May 4th. 40 percent of professionals believe the US interest rate will end the year between 2.5 percent and 2.75 percent.
Look at individual values
Chip Values: This industry was in demand because of in Amsterdam chip equipment supplier ASML exceeded market expectations with its quarterly results and the share was able to increase by seven percent. In Germany, Infineon climbed 3.3 percent in the Dax. In the MDax, the supplier Siltronic was at the top with an increase of 5.7 percent, while PVA Tepla increased in the SDax by 6.1 percent.
SiemensEnergy: The company is struggling with ongoing problems at the wind power subsidiary Siemens Gamesa and the consequences of the Ukraine war. As a consequence, the energy technology group is putting its annual forecast to the test. The stock loses almost 5 percent of its value.
Lanxess: Business is better than expected at the specialty chemicals company. The company assumes that in the first quarter earnings (Ebitda) before special items and sales will be well above average market expectations and the previous year’s result. This news gives the Lanxess paper a plus of 3.3 percent. The final figures for the first quarter are to be presented on May 5th.
Nordex: A decline in incoming orders sends the paper plummeting. Shares in the wind turbine maker fell 4.5 percent on Wednesday. Analyst Constantin Hesse from the investment bank Jefferies predicts that demand will pick up again as the year progresses. In Europe in particular, higher orders can be expected thanks to the expected simplification of the approval process.
Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.