The 14,000 point level has become a key resistance.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt The Dax cannot continue its positive start to the week on Tuesday. As is so often the case in the recent past, investors are taking the opportunity to sell shares again after price gains have been posted in the meantime. The Dax falls by one percent to 14,037 points at the opening on Tuesday. On Monday it went up 1.4 percent at 14,175 points.
“It’s still a rollercoaster ride,” says portfolio manager Thomas Altmann from the investment advisor QC Partners. “Really good mood just doesn’t want to come up at the moment.”
The mood among investors in Asia was already cautious. Despite measures to support the economy in China, the disappointing growth prospects in the People’s Republic deter investors from entering the Asian markets. Both the Nikkei Index and the Shanghai Stock Exchange were down on Tuesday.
From an economic point of view, the purchasing manager indices from the euro zone are of interest in the morning. Should these continue to be clearly in the growth area after the unexpected increase in the Ifo business climate for Germany the day before, the interest rate hike expectations of the European Central Bank (ECB) would probably be underpinned again, wrote the experts at Helaba. The markets are currently assuming the first rate hike in July.
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Meanwhile, German government bonds are trading with price gains. The somewhat gloomier mood on the financial markets is increasing the demand for safe securities. In the morning, the trend-setting futures contract Euro-Bund-Future rose by 0.19 percent to 153.29 points. In contrast, the yield on ten-year Bunds fell slightly to 1.06 percent.
China worries depress oil prices
Investors are withdrawing from the crude oil market for fear of lower demand from top buyer China. The price of Brent from the North Sea fell by 1.2 percent to $112.03 a barrel. “The lockdowns in China are playing an important role in the outlook for fuel needs,” says analyst Tina Teng of brokerage house CMC Markets.
Euro holds near one-month high
The euro held near its one-month high the day before on Tuesday morning, despite slight losses. In early trade, the common currency was trading at $1.0665, down slightly from the previous day. The European Central Bank (ECB) set the reference rate at $1.0659 on Monday afternoon.
At the start of the week, the euro had benefited from comments from the ranks of the ECB. President Christine Lagarde had specified the expected tightening course of the central bank by promising an end to negative key interest rates for late summer. However, Lagarde left the subsequent course largely open. The background to the tightening is the high inflation, to which the ECB reacted later than many other central banks by raising interest rates.
Individual values in focus
TAG real estate: The real estate group published figures for the first quarter. The Group continues to benefit from rising rents in metropolitan areas. Despite this, TAG was unable to convert the increase in earnings into price gains. Shares fall 2.1 percent.
About You: The online fashion retailer About You presented the final figures for the year. They are trading at the lower end of the forecast range, a trader said. The view is also disappointing. The stock loses 9.3 percent.
CTS Eventim: After making a profit at the start of the year, the ticket dealer and concert organizer is optimistic about a significant recovery from the corona pandemic, but does not dare to make a clear forecast for 2022 despite record ticket sales. The titles are 1.8 percent lower.
AirFrance: A 2.3 billion euro capital increase sent Air France shares plummeting. The airline’s papers fall 6.4 percent in Paris. In their wake, the titles of Lufthansa and British Airways parent IAG give up to four percent.
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