Frankfurt am Main – Phew! Dax investors were almost cheered from the start of the stock market week.
But at the start of the shortest trading week since Easter, the Dax ended Tuesday with minimal losses. Strong US stock markets helped the leading index limit losses. In the end, the German leading index fell just 0.07 percent to 14,153.46 points. In the course of trading, it even slipped below the 14,000-point round mark for a short while.
At the close of trading, the MDax rose 0.18 percent to 30,724.08 points.
In particular, economic development in Europe and the high rate of inflation continued to be a cause for concern, one analyst wrote. However, the good mood in the US was transferred to the German capital market in the afternoon. “In the United States, the overall situation is much stronger than in Europe.”
The main European indices remained somewhat more clearly in the red. The EuroStoxx 50 lost 0.47 percent to 3,830.76 points. The Paris Cac 40 closed down 0.8 percent, while the FTSE 100 was down just 0.2 percent. In New York, the leading Dow Jones Industrial Average rose 1.2 percent at the end of European trading. Things looked even better on the US Nasdaq tech market.
Before the strong US trade kicked in, it looked like a messy start to the week for the Dax for a long time. Experts pointed to a number of ongoing uncertainties, most notably the war in Ukraine, as a burden. “There are still some signs of easing in the Ukraine conflict, and further risk-taking is unlikely given further Russian advances in eastern Ukraine,” Helaba experts commented.
In Germany, the auto industry breathed a sigh of relief after better news from China. With price increases of up to 3.9 percent, Daimler Truck, Volkswagen and supplier Continental were among the best values in the Dax. Over the long Easter weekend, news broke that VW’s plants in Changchun, China, were gradually resuming production after a month of downtime.
Among the beneficiaries were shares in arms group and auto supplier Rheinmetall, which has been on a record rally for weeks anyway due to Western arms spending. Among the best MDax stocks, they rose 2.2 percent and hit a record level over the course of the year.
The former krona speculators had to accept heavy losses. These include online and technology sector stocks, but above all healthcare stocks: Merck KGaA shares brought up the rear on the Dax at a 3.7 percent discount. Sartorius also lost a lot.
Due to the easing of corona measures and the change in interest rates in the US, investors have moved away from corona winners in recent months and switched to other sectors. Shares of German food suppliers are also particularly affected. Delivery Hero was 1.5 percent weaker, extending the previous week’s losses.
Hellofresh closed 3.4 percent higher after initial losses. In the current year, however, the shares have fallen nearly 42 percent. This makes them Dax’s second weakest action ahead of Delivery Hero. While Hellofresh is spending a lot of money on advertising and its own infrastructure, demand is affected by the fact that gastronomy is picking up again after the end of corona restrictions, analyst William Woods of Bernstein Research wrote.
A negative factor on the MDax was shares of Hypoport, which fell almost ten percent. Experts had recently indicated that higher interest rates and rising construction costs were not conducive to the financial services provider’s real estate business.
After the close of the Xetra, the euro was quoted at 1.0785 US dollars. The European Central Bank (ECB) set the reference rate at 1.0803 (Thursday before Easter: 1.0878) in the afternoon. The dollar thus cost 0.9257 (0.9193) euros.
The current yield on the bond market rose to 0.79 percent. The Rex pension index fell 0.50 percent to 136.17 points. The Bund future fell 0.54 percent to 153.88 points.