The leading German index is in a downward trend this year.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt The European stock markets are friendly on Friday after the downward trends of the previous days. At the close of trading, the plus was 1.46 percent at 14,283 points. On a weekly basis, this still means a minus of 1.1 percent for the Dax.
The MDax rose by 1.4 percent to 30,830 points. The Eurozone leading index EuroStoxx 50 gained 1.3 percent. As a result, the current economic and political crises do not appear to be having any further negative impact on the share price.
The Dax dare a new attempt at recovery, stated Christian Henke from Broker IG. “However, this venture could ultimately fail.” According to stockbrokers, the current stress factors on the market are too great.
Analysts currently see many risks. Keywords are the ongoing war in Ukraine, rising commodity prices, high inflation and the expectation of further increases in interest rates in the USA. The agreement on another package of EU sanctions, which for the first time also affects energy supplies from Russia, provided a topic of conversation. The EU decision provides for a ban on Russian coal deliveries.
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The danger of a global recession is increasing, additionally driven by the restrictive fight against Covid in China with its economic consequences.
From a German perspective, the general stress factors do not appear to be too threatening. The so-called volatility index is well below its level at the beginning of March. The bar reflects investors’ short-term index expectations, derived from Dax option prices.
On the European markets, bank stocks are not only in focus as beneficiaries of rising interest rates thanks to higher profits in the lending business. Crédit Agricole’s investment in Banco BPM caused a price jump on the Milan Stock Exchange. Shares in the Italian financial institution jumped more than 10 percent, while shares in Crédit Agricole in Paris gave back gains of up to two percent during the day. In the Dax, Deutsche Bank is one of the bigger winners with a three percent increase.
Investors are less anxious
The Asian stock exchanges ended the week with a slight loss on Friday before the start of European trading. According to experts, the decisive factor was the global situation. “The past two decades have brought low inflation and a relatively peaceful world. Going forward, geopolitical conflicts may become increasingly volatile and have a greater impact on the overall global economy,” said Lirong Xu, chief investment strategist at Franklin Templeton Sealand Fund Management in Shanghai.
The weakness of the euro intensified on the foreign exchange market. The European single currency continued to fall below $1.09. It is thus approaching its low of two years ago under the impression of interest rate hike expectations in the USA. Last summer more than 1.22 dollars were paid for the euro.
The ruble rally picked up speed again. The euro fell at the top by almost three percent to 79.11 rubles. The Russian currency was thus higher than it had been since July 2020. The ruble also continued to recover against the dollar. The US currency fell 1.5 percent to 74.58 rubles.
Look at individual values
Scout24: Speculations about an interest from financial investors are spurring shares on the real estate advertising platform Scout24. The papers rose by around 13 percent on Friday to EUR 59.24, which is the highest price in almost three months. Scout24 thus has a market value of around 4.3 billion euros.
K+S: The fertilizer maker’s shares rose to their highest level in six and a half years after an upgrade from JP Morgan. They climb by more than nine percent to 32.42 euros. The analysts at JP Morgan have upgraded the title to “Overweight” from “Underweight” and raised the target price from EUR 12.50 to EUR 44.50. Since the beginning of the year, K+S have already gained more than 90 percent in value.
CTS Eventim: Investors follow a buy recommendation from Berenberg Bank and buy CTS Eventim. The shares of the ticket seller increase in the MDax by more than eight percent to 65.35 euros. Analysts believe the company should benefit from the event industry’s post-pandemic comeback. Berenberg Bank upgraded the stocks to “Buy” from “Hold”.
Evotec: The biotech company will receive $16 million from its partner Bristol-Myers-Squibb in connection with a neurology collaboration. The course of the MDax member Evotec temporarily rises more than three percent, but then falls back below the previous day’s level.
Aareal Bank: Nothing stands in the way of the multi-billion takeover plans of the financial investors Advent and Centerbridge for the real estate financier listed in the SDax. On Thursday, the financial regulator Bafin gave the green light for the official takeover bid. Aareal shareholders can accept it from the end of April. The course hardly reacts to this.
Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.