Frankfurt Stock Exchange
Dax oscillates around 13,000 points

dax

The Dax is the most important stock index in Germany. Photo: picture alliance / dpa

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The Dax extended its previous day’s losses on Thursday and tested the 13,000 point mark several times.

The Dax extended its previous day’s losses on Thursday and tested the 13,000 point mark several times.

There was some easing in the trading rooms at times as signals pointed to a remarkably benign start to the Wall Street pointed. However, US futures bounced back quickly, although they continue to indicate upside gains.

Investors, on the whole, remain noticeably nervous as signs of a recession mount. Statements by the head of the US Federal Reserve Jerome Powell the day before continued to have an effect and the increasingly gloomy corporate mood in the euro area did the rest.

In the afternoon, the leading index lost 0.67 percent to 13,056.62 points after temporarily falling to its lowest level since March at just under 12,940 points. The leading eurozone index, the EuroStoxx 50, even recovered almost entirely from its early losses. Of the MDAXthe index of medium-sized stocks in Germany, recently fell by 2.08 percent to 26,680.12 points.

Powell had one in his speech before the US Senate Banking Committee on Wednesday recession not excluded as a result of higher interest rates. A so-called “soft landing”, i.e. getting out of the situation without major upheavals, is a challenge.

Late on Thursday morning, sentiment data from companies in the euro region also weighed on investors’ mood. The purchasing managers’ index from S&P Global (formerly IHS Markit) fell in June to its lowest level in almost a year and a half and also more than analysts had expected.

“The numbers are disappointing across the board and the unfavorable framework conditions from high prices, especially for raw materials and preliminary products, as well as delivery bottlenecks, a lack of staff and rising interest rates cloud the prospects more clearly than before,” commented analyst Ralf Runde from Helaba.

With a view to the individual values ​​on the German market, the shares of Deutsche Bank in the Dax fell by 6.6 percent. In the MDax, Commerzbank lost 6.3 percent. Concerns that, in the event of a recession, loans might not be able to be repaid.

Utilities took the top spot: RWE and Eon each rose by around 1.5 percent. The federal government announced the second alarm level of the three-stage gas emergency plan. Barclays analyst Peter Crampton therefore sees his positive assessment of RWE once again supported. This should ease the pressure on large gas companies, and higher costs could be passed on.

Otherwise, the main focus was on reclassifications – and these related to second- and third-tier companies. JPMorgan downgraded Aroundtown to “Underweight”, which temporarily catapulted the share to the bottom of the MDax at a discount of more than ten percent. Most recently, she gave up 8.2 percent. Analyst Tim Leckie thinks market expectations are overly optimistic, especially if the economy continues to deteriorate.

Vantage Towers fell 3.3 percent. The US bank Morgan Stanley’s optimism about the shares of the Vodafone transmission tower subsidiary has given way. Analyst Emmet Kelly downgraded the paper to “equal weight” and lowered the price target from 38 to 32 euros. However, the share would still offer upside potential of currently around 20 percent.

Analyst Richard Schramm from the British bank HSBC was more cautious about Rheinmetall, which fell by 2.4 percent. Among other things, he canceled his buy recommendation for valuation reasons. He raised the price target from 220 to 240 euros and referred to his high growth expectations for the armaments division of the group. However, he is skeptical about the automotive supply division.

Salzgitter’s shares in the SDax lost another moderate 0.2 percent after a price slump of 11 percent the day before. The US bank Morgan Stanley has now upgraded the steelmaker’s shares to “equal weight”. Yesterday afternoon, Salzgitter raised its forecast again, but a downgrade of the share by the US bank JPMorgan and its critical view of the prospects for the entire European steel industry had already frightened investors.

The euro was trading at $1.0507 in the early afternoon. The European Central Bank set the euro reference rate at $1.0521 on Wednesday. On the bond market, the current yield fell from 1.60 percent on the previous day to 1.36 percent. The Rex pension index rose by 1.16 percent to 133.05 points. The Bund future rose by a strong 1.63 percent to 147.53 points.

dpa