Frankfurt The German stock market recovered from its recent setback on Tuesday. After the leading index Dax was able to pass the 13,000 point mark in the first hour of trading, it is now up 1.5 percent at 13,084 points in the morning. The Eurozone leading index EuroStoxx 50 is also friendly and is listed 1.4 percent firmer at 3623 points.
The mood to buy had already set in in Tokyo. Above all, technology stocks rose, which had lost the most feathers in the previous two days.
In China, meanwhile, concerns about the economy came to the fore after other cities tightened their corona restrictions. For example, the authorities in the southern Chinese city of Shenzhen closed the world’s largest electronics market, Huaqiangbei, on Monday to contain a corona outbreak.
Regardless, the Dax is now recovering from its brief fall of 500 points on Friday after Jerome Powell, head of the US Federal Reserve, prepared the financial markets for a long fight against inflation.
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This made it clear that the Fed is giving priority to fighting inflation over protecting economic growth and rising stock prices, said analyst Jochen Stanzl from the brokerage house CMC Markets. “This knowledge should at least put a lid on the stock exchanges for the coming months.”
Inflation data for Germany
The firmer opening does not change the fact that the fragile optimism of the buyers of the past few weeks is being put to the test these days, warns Stanzl. In the afternoon at the latest, the price gains could be put to the test again when the current inflation data for Germany is reported at 2 p.m., which is likely to continue to be characterized by very high energy costs.
With an inflation rate of 7.5 percent, the strong upward pressure on prices in Germany eased somewhat for the second month in a row in July – also promoted by government relief measures such as fuel discounts and the nine-euro ticket, which expire in September. Market observers therefore expect the price pressure to increase again soon.
They also continue to expect a significant rate hike by the European Central Bank (ECB) at next week’s meeting. Most recently, the euro central bank initiated the turnaround in interest rates and raised the key interest rate and deposit rate by 50 basis points.
Gas prices continue to fall
Irrespective of this, the energy crisis in the European Union and Great Britain remains the determining factor for the German stock index, said analyst Konstantin Oldenburger from brokerage house CMC Markets.
The announced renewed maintenance work on the Baltic Sea pipeline Nord Stream 1 is therefore also a topic on the market. The Russian exporter Gazprom had announced that it would interrupt gas deliveries for three days from August 31. This fueled fears that the gas flow from Russia, which had already been severely restricted, could dry up completely.
Meanwhile, the situation on the commodity exchange in Amsterdam has eased. In the morning, a megawatt hour of gas cost 255 euros, slightly less than the day before. On Friday the price was still 340 euros.
Look at individual values
Bayer: After a price slide on Monday, investors at Bayer took the opportunity to get started. The papers were among the most traded values. Investors were optimistic that the pharmaceutical company now wants to test its drug candidate Asundexian against strokes in studies relevant to approval on a broad group of patients. The stock is up about 2 percent.
Eagle groups: The ailing real estate group announced news on Monday after the market closed, including half-year figures, the waiver of a dividend proposal and the permanent installation of Thomas Echelmeyer as CFO. Investors reacted with concern, the share lost around two percent.
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