Frankfurt At the end of the week, the leading index Dax went up only slowly. After being in the red for a long time, the Dax closed up 0.5 percent at 15,881 points.
On a weekly basis, the Dax only recorded a small plus. After the price rally of almost ten percent since the low in March, the leading index ran out of breath below the 16,000 point mark in the second half of the week.
US stock markets opened unevenly. In Asia, the most important indices had closed in the red. Investors are now looking to the coming week, in which numerous heavyweights from the Dax and US technology companies will present their figures. In addition, the ifo business climate index will be published on Monday, an important mood barometer for the German economy.
There is hardly any movement at the end of the week in other asset classes. The euro is still trading below the $1.10 mark. A week ago, the European common currency had marked its highest level in a year.
Oil prices are also moving very little. On a weekly basis, however, oil prices have fallen significantly. The decisive factors are predominantly weak economic data from the USA, which have given rise to new concerns about the economy.
On the crypto market, speculators continue to cash in after the recent rally. Bitcoin, the oldest digital currency, was quoted at $28,105 on Friday. The significant gains from mid-April, when the $30,000 mark was surpassed for the first time since June 2022, are over for the time being. For 2023, however, there is still an increase of almost 70 percent on the list.
According to Tilmann Galler, capital market strategist at JP Morgan Asset Management, there is a risk of a significant slowdown in economic activity in the USA by the third quarter at the latest, and Europe will not be able to avoid it either. For investors, this means strengthening the defensive qualities of the portfolio – for example with high-quality government and corporate bonds as well as shares in high-dividend companies.
Christophe Braun, Investment Director at Capital Group, emphasizes the advantages that a balanced portfolio currently offers. “The traditional asset allocation – 60 percent equities and 40 percent bonds – is not a defective or failed strategy,” he emphasizes. “It will always make sense to think about balance, diversification and risk.”
Look at individual values
SAP: Europe’s largest software group took stock of the first quarter. SAP grew slightly faster than expected in the first quarter. From January to March, the adjusted operating result climbed by twelve percent compared to the same period last year to 1.9 billion euros, as the Dax group announced on Friday. Sales in the first quarter were ten percent higher at EUR 7.4 billion. The stock fell in early business on Friday but then turned positive to close 5.2 percent higher.
Mercedes-Benz: Thanks to high prices and higher sales, the carmaker earned better than expected on the financial market in the first quarter. According to preliminary figures, the adjusted return on sales in the main business area of passenger cars was 14.8 percent, while analysts were expecting an average of 13.4 percent. As the Dax group explained in a mandatory notification on Thursday evening, adjusted operating profit in the quarter was 5.5 billion euros, almost four percent more than a year ago. The share gained 1.4 percent.
Volkswagen: Volkswagen Group sales improved again in the first quarter. As the Wolfsburg-based company announced on Friday, worldwide deliveries from the beginning of January to the end of March rose by 7.5 percent to just over two million vehicles compared to the same period last year. Canada has also promised Volkswagen subsidies that could add up to the equivalent of up to nine billion euros over the course of ten years, so that the carmaker can build a battery factory for electric vehicles in North America. The preferred share gained 0.3 percent.
Krones: The manufacturer of beverage bottling plants buys 90 percent of the US pump specialist Ampco Pumps. “The acquisition of Ampco Pumps is an important step in expanding the component business of Krones process technology,” the company announced on Friday. A purchase price was not mentioned. The transaction should be completed in the first half of the year. The stock closed 0.9 percent up.
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