The leading German index is in a downward trend this year.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt European stock markets appeared friendly at the start of trading on Friday. The Dax is calculated in the morning with a premium of 1.4 percent at around 14,276 points. 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.
The danger of a global recession is increasing, additionally driven by the restrictive fight against Covid in China with its economic consequences.
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From a German perspective, however, investors’ fears do not appear extreme. 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.
Investors 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.
Look at the individual values
Infineon: At the start of trading, the chip manufacturer’s stock was a big winner in the Dax with a plus of more than two percent. The listing had lost a lot in the previous weeks.
CTS Eventim: Investors follow a buy recommendation from Berenberg Bank and buy CTS Eventim. The ticket seller’s shares rose in the MDax by up to 8.7 percent to EUR 65.60. 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 price of MDax member Evotec rose by more than three percent.
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 reacted to this.
Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.