Frankfurt The recovery course of the German stock market faltered on Tuesday afternoon: after Wall Street opened, the Dax was only 0.6 percent higher at 12,975 points. By the afternoon it was up more than 1.5 percent and thus above the 13,000 point mark.
The mood to buy had already set in in Tokyo. Above all, technology stocks rose, which had lost the most feathers in the previous two days.
In China, meanwhile, concerns about the economy came to the fore after other cities tightened their corona restrictions. For example, the authorities in the southern Chinese city of Shenzhen closed the world’s largest electronics market, Huaqiangbei, on Monday to contain a corona outbreak.
Irrespective of this, the Dax recently recovered from its brief fall of 500 points on Friday after Jerome Powell, head of the US Federal Reserve, had prepared the financial markets for a long fight against inflation.
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This made it clear that the Fed is giving priority to fighting inflation over protecting economic growth and rising stock prices, said analyst Jochen Stanzl from the brokerage house CMC Markets. “This knowledge should at least put a lid on the stock exchanges for the coming months.”
Prices in Germany, which are rising across the board, are driving inflation back close to the eight percent mark. Goods and services were an average of 7.9 percent more expensive in August than a year earlier, the Federal Statistical Office announced on Tuesday. In particular, high energy and food prices provide a boost. Economists even think double-digit inflation rates are possible in the coming months.
Inflation had recently eased off two months in a row – to 7.5 percent in July – also promoted by relief measures by the government such as fuel discounts and the nine-euro ticket, which expire in September. Market observers also expect the European Central Bank (ECB) to raise interest rates significantly at its meeting next week. Most recently, the euro central bank initiated the turnaround in interest rates and raised the key interest rate and deposit rate by 50 basis points.
Energy prices are falling
Because investors in Germany also expect that the ECB, like the Fed, will accept a recession in order to lower inflation, Brent crude oil from the North Sea and the industrial metal copper both fell by around 3.5 percent to 101, $36 per barrel (159 liters) or $7865 per ton.
The European natural gas future fell by almost one percent to 265 euros per megawatt hour and was thus more than 20 percent below its record high on Friday. The sales were triggered not only by the surprisingly high filling levels of the gas storage facilities in Germany, but also by reports that the federal government might agree to a gas price cap. The analysts at EnergyScan, the data provider of the utility Engie, wrote that investors who are speculatively oriented in particular would now exit the market so as not to have to sell at a loss after the price limit was introduced.
The price of electricity also went down steeply. A megawatt hour for delivery in one year in Germany cost 610 euros, just under half as much as at the start of the week, when it had reached a record high of 1050 euros.
Look at individual values
Porsche: Investors continue to look positively at the planned IPO of the VW sports car subsidiary Porsche AG. On Tuesday, the shares of the Volkswagen Group holding company Porsche SE in particular continued their price rally and climbed by almost four percent after new speculation about the valuation of Porsche AG arose on Friday. The SE stocks are heading for the sixth consecutive day of profits – with an overall balance of profits of twelve percent.
Bayer: After a price slide on Monday, investors at Bayer took the opportunity to get started. The papers were among the most traded values. Investors were optimistic that the pharmaceutical company now wants to test its drug candidate Asundexian against strokes in studies relevant to approval on a broad group of patients. The stock is up nearly 3 percent.
Eagle groups: The ailing real estate group announced news on Monday after the market closed, including half-year figures, the waiver of a dividend proposal and the permanent installation of Thomas Echelmeyer as CFO. Investors reacted with concern, the share lost a good three percent.
RWE: Utilities stocks have come under pressure again. The debate about the regulation of electricity prices unsettles investors. RWE lost around three percent and was one of the weakest values in the Dax. Eon and the solar and wind farm operator Encavis also gave way. On the European electricity market, prices are currently set primarily by gas-fired power plants. Since the price of gas has risen sharply against the background of the war in Ukraine, electricity has also become more expensive. A reform of the European electricity market could revise this mechanism. Until then, however, the signs for the operators would be corrections.
Twitter: Elon Musk has sent another resignation letter to cancel the Twitter takeover, sending shares of the short message service plummeting. The shares fell nearly 3 percent in premarket US trading on Tuesday to $38.99, further away from the Tesla boss’s original asking price of $54.20. Musk’s lawyers said facts had come to light that provided an additional and clear basis for ending the acquisition. These were known to Twitter before the first cancellation of the $ 44 billion takeover, but were not published.
Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.