The 14,000 point level has become a key resistance.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt The German stock market defended its recent price gains at the start of trading on Friday. In the first hour of trading, the leading German index Dax is up 0.1 percent at 14,251 points. The Frankfurt stock exchange barometer closed the holiday trading on Ascension Day 1.6 percent higher at 14,231 points.
Investors welcomed the signals from the US Federal Reserve that it would not tighten monetary policy more than expected, according to market observers at Credit Suisse. In addition, one or the other bargain hunter apparently senses a chance to stock up cheaply, said Naeem Aslam, chief market analyst at brokerage house AvaTrade.
The Dax is now facing the third positive week in a row: the week ended May 13, it closed 2.6 percent up. In contrast to the previous weeks, there was no large-scale profit-taking, but the Dax held its level in the week to May 20 with a weekly loss of 0.3 percent. This week, the index is now heading for a weekly gain of 1.7 percent.
The Dax has thus established itself above the 14,000 point mark for the time being, which it had been working on since the beginning of May. From a technical point of view, the downward trend that has been ongoing since the beginning of the year has been broken for a long time. The Dax has meanwhile moved away from its May low of 13,381 points.
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From a technical point of view, there is now room to reach the 14,362 point mark, write Helaba’s Ralfcircul and Ulrich Wortberg in their morning analysis. The 100-day line at 14,565 points is also getting closer. This line shows the moving average over this period and the medium-term trend.
Above that, the mark of 14,980 points is relevant, says Martin Utschneider, Head of Technical Analysis at Donner & Reuschel. An attempt at recovery failed at the end of March: “If today’s end of the week is successful, the mark is a realistic target for the next few weeks.” According to Utschneider, the range from 14,041 to 13,871 points offers a reliable stop orientation on the underside.
According to the Helaba expertscirculation and Wortberg, the trigger for the better mood on the market is the easing of inflation worries: “They have diminished because interest rate expectations have increased, especially in the euro zone, but also because the economic prospects appear more gloomy. The latter applies above all with a view to the most recently published US data and China.”
This has brightened the mood this week, especially on Wall Street. The market-wide US index S&P 500 is up four percent this week after seven weeks of losses in a row. The entire stock market benefits from this.
Individual values in focus
Beiersdorf: Strong business figures from the US cosmetics retailer Ulta Beauty are encouraging investors to invest in European providers of beauty care products such as Beiersdorf and L’Oreal. Ulta exceeded expectations with full-year sales of $2.3 billion and earnings of $6.30 per share, praised JPMorgan analyst Christopher Horvers. The increased targets for 2022/2023 are conservative at $9.35 to $9.55 billion in sales and $19.20 to $20.10 per share in earnings. The Ulta titles listed in Frankfurt have risen by a good 13 percent, as strongly as they did a year and a half ago.
Handle: A negative analyst comment triggers sales at the consumer goods manufacturer. Henkel shares are down 1.5 percent to just under 62 euros. The experts at the investment bank Jefferies downgraded the title to “hold” from “buy” and lowered the price target to 69 from 75 euros.
troublemaker: The advertising space marketer is also pushed into the red because of a negative analyst comment. The Ströer shares fall by three percent to below 51 euros. The experts at JPMorgan have downgraded the title to “neutral” from “overweight” and see the price target at 55 euros. The bank sets JCDecaux’s shares at “Underweight” from “Neutral” and the price target at 16.60 from 22.70 euros. As a result, the title of the Ströer rival in Paris fell by 5.5 percent to 17.08 euros.
With material from dpa and Reuters.
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