Despite high inflation, the Dax closed almost one percent up

Dax curve

The 14,000 point level has become a key resistance.

(Photo: Bloomberg Creative/Getty Images [M])

Frankfurt Despite renewed high inflation data, the Dax rose by 0.8 percent to 14,575 points by the end of trading. At 7.9 percent in May, inflation in Germany significantly exceeded the analysts’ estimates of 7.6 percent compared to the same month last year.

The day in Frankfurt was also so quiet because important financial players were absent due to a public holiday in the USA. Shortly after the start of trading, the leading index was even above the 14,600 point mark, but fell below this level a little later. The friendly markets in Asia contributed to the generally robust mood.

In Shanghai, most of the lockdown measures are to be lifted from Wednesday. The associated economic hopes were immediately reflected: In the Dax, retail stocks such as Zalando and Puma gained more than four percent, and Adidas stocks rose by 2.7 percent. In the SDax, the online used car dealer Auto1 was at the top with a price jump of more than eight percent.

Last Friday, the US stock markets ended the seven-week longest series of losses in decades with a positive weekly balance. One important reason is the growing conviction that inflation has now peaked and that the central bank can raise interest rates further without the economy slipping into recession.

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Skepticism about European equities

Irrespective of immediate daily events, however, the current stock market assessments show that the analysts are primarily concerned with interest rate, inflation and economic prospects. The experts come to very different conclusions here.

The professionals at BCA Research are still cautious about investments in Europe. “The ECB will pause on the rise in interest rates once it has raised its deposit rate to zero in the third quarter,” the experts write. Inflation is the driving factor for higher interest rates and inflation will peak in the summer. But because of the general economic risks, European assets are not yet a purchase.

US economist Gary Shilling sees things differently. He, too, estimates that inflation is already at a high. But the US Federal Reserve’s rate hike and stock market slump pointed to a global recession. “A bear market and with it a period of falling prices has begun,” he believes. The European markets would not be able to escape this.

Euro at its highest level in five weeks

The common currency rose 0.5 percent to $1.0779 by the evening, marking its highest level in five weeks. In view of the German inflation figures, which are expected to rise again in a month-on-month comparison, there is no reason to reduce interest rate expectations with regard to the ECB, the analysts at Helaba state.

It is also clear to the LBBW experts: ECB boss Christine Lagarde has recently acknowledged more clearly than before that monetary policy in the euro area is at a real turning point. “Accordingly, a key interest rate turnaround at the meeting after next should be a foregone conclusion.”

Individual values ​​in focus

Delivery Hero and Hellofresh: The shares of the operator of food ordering platforms and the Kochboxen shipper were among the big Dax winners of the day with a plus of 9.7 and 3.5 percent respectively. The listings of Delivery Hero and Hellofresh are well below their top levels reached a few months ago. Prices have been fluctuating above average for some time due to different future assessments by different groups of investors.

Siemens: Siemens was one of the winners in the Dax on Monday. The group reported at the weekend that it had received an order to build a large high-speed train system in Egypt. It is the largest order in the company’s history. By the close of trading, the stock was up 2.4 percent.

Rheinmetall: The arms manufacturer’s shares closed up 1.6 percent. The course was driven by the 100 billion euro program for the Bundeswehr. The price of the MDax member has more than doubled in just a few months.

Aareal Bank: The course of the real estate financier in the SDax fell by 0.4 percent. The financial investors Advent, Centerbridge and the Canadian state pension fund CPPIB could possibly take over Aareal Bank this year. With their two billion euro takeover bid, they collected a total of 74.62 percent of the shares in the Wiesbaden real estate financier.

Here you can go to the page with the Dax course, here you can find the current tops & flops in the Dax.

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