Dusseldorf The Dax makes a new start towards 16,000 points on Friday. In the first hour of trading, the leading German index rose by 0.3 percent to 15,852 points. With a daily high of 15,919.5 points, it exceeded the annual high of 15,919.1 points reached on Monday.
The stock market wisdom “Sell in May an go away” could turn out to be a trap for investors, says Martin Utschneider, analyst at the private bank Donner & Reuschel: “The Dax seems to want to ‘dance’ much more into May.”
April marks the end of the historically best month on the stock market, and the stock market begins to tend to be weaker. However, according to Utschneider, various technical indicators suggest that the upward trend could continue this year.
Among other things, there was great buying interest on both Wednesday and Thursday, when the Dax fell towards 15,700 points. This is a sign of strength. However, should the Dax fall below this mark for a long time, there would be a further downward potential of 200 points, warns analyst Jörg Scherer from HSBC Germany.
Inflation data in focus
New impetus could come from the German inflation figures for April in the afternoon. A slight decline is expected. However, Altmann explains: “Today’s inflation rate will probably show once again how slow and tough the decline is. Any negative surprise would further increase the pressure on the ECB.”
Data from Germany is also published on the economic side. According to economists, the German economy has just prevented the long-feared winter recession. The Federal Statistical Office announces its first estimate of performance in the first quarter.
However, retrospective economic data usually move prices less than forward developments. In this case, this should only change if the numbers are unexpectedly good or bad and the valuation basis for the shares changes.
Yen under pressure
After the interest rate decision by the Japanese central bank (BOJ), the national currency, the yen, is going downhill. The dollar, on the other hand, rose 0.7 percent to 134.94 yen.
The Japanese central bank stuck to its ultra-loose monetary policy at the first interest rate meeting under its new governor Kazuo Ueda. The currency watchdogs decided at their meeting that they wanted to subject monetary policy to a broad-based review, but they wanted to take a year and a half to do it.
Commerzbank analyst Ulrich Leuchtmann therefore comments: “This statement should have shaken the hopes of those (including me) who had hoped that at least a slow, gradual turn towards normalization of monetary policy could take place, if not a U-turn immediately with Kazuo Ueda taking office.”
Individual values at a glance
Covestro: For the plastics group Covestro, the year could be easier than initially feared. For 2023, Covestro now expects, at best, an operating profit (Ebitda) at the previous year’s level of EUR 1.6 billion or a decline to EUR 1.1 billion. So far, the Leverkusen-based company had forecast earnings well below the previous year’s figure.
The current share buyback program, which was put on hold in the middle of last year due to the gloomy economic prospects, is also to be resumed in the short term. The stock benefits from the news and is up more than five percent.
ProSiebenSat1: The MDax group had already announced a massive dividend cut and a drop in profit and sales on Thursday evening. In addition, ProSiebenSat.1 is parting ways with CFO Ralf Gierig with immediate effect and by mutual agreement. The stock fell more than 10 percent.
hellofresh: The US bank JP Morgan has increased its price target for the recipe box mailer from 27 to 31 euros. The shares of the MDax group rose by almost three percent to over 26 euros.
Software AG: Shares in the software company rose by around 1.5 percent in the SDax small-cap index. The news outlet reports that activist investor Elliott is at the
Software AG has joined. The Darmstadt-based company, which is in the middle of restructuring, is about to be taken over by the US financial investor Silver for 2.2 billion euros
Lake.
High Low: At the construction group, the US bank Jefferies increased its price target from 67 to 70 euros. The share, which is listed in the SDax, still loses around one percent to a good 71 euros.
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