The leading German index is on a downward trend this year – despite the recent recovery.
(Photo: Bloomberg Creative/Getty Images [M])
Frankfurt Fading fears of an economic downturn caused price gains across Europe on Whit Monday. The Dax closed on Monday up around 1.3 percent at 14,653 points. The leading European index Euro Stoxx 50 rose by a good 1.3 percent to 3837 points.
Stockbrokers were busy gleaning the surprisingly strong US jobs data from Friday. The robust job market points to stable incomes and is thus dampening fears of a recession for the time being, said economist Jonathan Millar from Barclays Bank. Another driver were positive signals from China. The strict corona rules in the capital Beijing are to be relaxed there. In addition, sentiment in the service sector improved in May, new data shows.
Above all, forms of investment that are considered to be particularly risky are benefiting from the positive mood. The cryptocurrencies Bitcoin and Ethereum became significantly more expensive by the afternoon. The biggest winners also included shares in online retailers such as the meal kit mail order company Hellofresh, the food delivery service Just Eat Takeaway and the fashion retailer Zalando.
The papers were able to recover somewhat from the sharp price losses in recent months. The shares of the Just Eat Takeaway company, which operates under the Lieferando brand in Germany, temporarily recorded a price increase of almost 15 percent on the Amsterdam stock exchange. An important factor was speculation about the US subsidiary GrubHub. According to a newspaper report, a co-founder may want to buy back the company.
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Musk sends Twitter stock down
Elon Musk also caused a stir. He again threatened to withdraw from his planned takeover of the short message service Twitter. A letter from his lawyers released on Monday said Twitter had “clearly breached” its obligations. Musk therefore reserves all rights to terminate the merger agreement. The boss of the carmaker Tesla had already said he would temporarily stop the deal. Twitter shares then fell.
The price of oil also largely gave back initial gains over the course of the day. He was dampened by speculation that Iran could sell more crude oil on the world market. It initially rose on Monday after Saudi Arabia surprisingly raised prices for exports to Asia significantly. Oil prices had risen in the past week, although the oil association OPEC plus wants to expand its production in July and August. However, analysts were skeptical as to whether the additional supply would be sufficient to compensate for the scarce world market supply. Russian production in particular has recently been under pressure due to severe Western sanctions as a result of the Ukraine war.
Individual values in focus
Online retailer: Papers from online retailers were among the daily winners. The shares of the food delivery service Delivery Hero closed up almost eight percent, the recipe box mail order company Hellofresh increased by seven percent and the fashion retailer Zalando by almost four percent. In Amsterdam, the shares of the Lieferando parent company Just Eat Takeaway rose by more than ten percent.
Bitcoin: Rising stock prices encourage investors to buy other risky investments like cryptocurrencies. Bitcoin is up 6 percent to $31,414 and Ethereum is up 9 percent to $1,915.
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