FRANKFURT (dpa-AFX) – The DAX shook off its initial losses on Thursday. A reduction in key interest rates in the USA, the world’s largest economy, provided some momentum. Concerns about the booming topic of artificial intelligence (AI) after the disappointing business figures from the US software group Oracle have recently only had a slight impact.
“If the Dax is able to defend the 24,000 mark during trading, the only thing standing in the way of a year-end rally from a monetary policy perspective is the meeting of the Japanese central bank next week,” wrote capital market strategist Jürgen Molnar from RoboMarkets.
The leading German index rose by 0.1 percent to 24,155 points around lunchtime. The MDAX of medium-sized stocks lost 0.1 percent to 29,697 points.
Although Oracle reported a strong increase in sales on Wednesday due to its business with products for AI use, growth in this area still fell short of expectations. Higher investments in AI data centers were also announced.
As expected, the US Federal Reserve Bank had previously cut the key interest rate by 0.25 percentage points – in a third interest rate step this year. Concern about the domestic labor market is greater than concern about high inflation. Wall Street reacted positively. However, experts highlighted the disunity within the Federal Open Market Committee (FOMC). This is also reflected in the interest rate forecasts of the central bankers and is likely to continue to accompany the stock markets in the coming year, expects analyst Leon Ferdinand Bost from Metzler Capital Markets.
In this country, SAP (SAP SE) suffered from the disappointment of Oracle and lost 2.2 percent in the DAX. Munich Re (Munich Reinsurance Company), on the other hand, rose by 2.2 percent. The papers benefited from further statements from the reinsurer on corporate strategy. The first details before today’s capital market day had already become known on Wednesday afternoon and were viewed positively by analysts. The group has now confirmed its profit target for 2025 and also emphasized that it wants to increase its profits by the end of the decade through greater savings.
Delivery Hero’s recent recovery rally was thwarted by a sell recommendation from Citigroup. The food supplier’s shares lost 6.2 percent, giving up part of their previous day’s gains. They recently rose by 45 percent from their annual low in mid-November.
In the wake of Givaudan’s price weakness, Symrise’s shares fell to a new low of 65 euros since the beginning of 2019. The Swiss competitor sent analysts the last signals before the balance sheet was presented at the end of January. The company said it had pointed out weaker market conditions for flavors. In addition, the annual forecast for sales has not been explicitly confirmed.
The medical technology group Carl Zeiss Meditec reported financial figures that contained light and shadow. After strong gains at the start of trading, it recently fell by 2.6 percent. On Monday the stock had fallen to an eight-year low. The news about the separation from Maximilian Foerst had a heavy burden. Foerst, who was only appointed CEO in May and had previously been head of China within the group, had admitted a violation of internal rules of conduct./ck/mis
— By Claudia Müller, dpa-AFX —