The 14,000 point level has become a key resistance.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt After significant losses in the previous week, the Dax started trading with profits on Monday. After opening, it rose by 1.4 percent to 14,171 points. On Friday, the leading German index closed just below the 14,000 mark at 13,982 points. The leading European index, the Euro Stoxx 50, also rose by around 0.8 percent to 3696 points on Monday.
One topic that is moving the stock market today is the possible relaxation of US punitive tariffs on imports from China. US President Joe Biden announced this at a joint press conference with Japanese Prime Minister Fumio Kishida on Monday in Tokyo. The tariffs were introduced under former US President Donald Trump. The aim of abolition should be to reduce the high inflation in the USA.
The new data from the Ifo index for Germany, which will be published at 10 a.m., are also eagerly awaited. A noticeable decline is expected after the index rose again slightly in April.
BayernLB expects growth in the service sector. For the other areas, it assumes a downturn.
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The Ukraine war is not the only cause of uncertainty. The supply chain problems in China and the prospect of sharply rising interest rates are also affecting the economy. Concerns about a recession have therefore recently increased.
Euro at its highest level for two and a half weeks
In addition to the German stock market, the euro also made up ground at the beginning of the week. The common currency peaked 0.5 percent at $1.0614, its highest level in two and a half weeks. The dollar index, on the other hand, lost up to 0.6 percent to 102.56 digits.
The analysts at Helaba have stated that speculation about rising interest rates in the euro area persisted. At the same time, concerns about the economy in the USA would increase. In view of the high inflation rates, most economists are now assuming that the ECB will tighten the monetary policy reins in July and end the era of negative interest rates this year.
Individual values in focus
German Euroshop: Major shareholder Alexander Otto wants to completely incorporate the shopping center investor Deutsche Euroshop and is teaming up with the US financial investor Oaktree Capital. A total of 1.4 billion euros would be offered, said the bidding consortium Hercules BidCo on Monday, which is controlled by Oaktree and Otto’s asset management company Cura.
The Board of Management and the Supervisory Board of Deutsche Euroshop have already backed the offer. The transaction should be completed in the third quarter. Specifically, Hercules BidCo is offering a dividend of EUR 22.50 per share and thus a premium of 44 percent to Friday’s closing price. The Deutsche Euroshop shares have increased by 42 percent after the start of trading.
Holcim: The Swiss cement manufacturer is expanding its ready-mixed concrete business in the USA with an acquisition. According to Holcim, it is acquiring Cajun Ready Mix Concrete for an undisclosed price. Cajun operates eight ready-mix concrete plants in the Baton Rouge, Louisiana area. The stock was up 1.5 percent at the start of trading.
Siemens Gamesa: At the weekend, Siemens Energy announced that it wanted to take over the wind power subsidiary Siemens Gamesa completely. The Munich-based company wants to offer 18.05 euros per share in cash for the remaining shares. At the start of trading, the Siemens Gamesa share was up almost six percent.
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