FRANKFURT (dpa-AFX) – The German stock market accelerated its recent winning streak on Whit Monday. Investors were increasingly betting on an end to the Iran war and took bold action in view of the significant fall in oil prices.
The leading index DAX made up for the price losses caused by the Iran war and approached its record high of almost 25,508 points, which it reached in mid-January. In the end there was an increase of 2.01 percent to 25,389.10 points. The MDAX temporarily climbed to its highest level in more than four years and ultimately gained 2.18 percent to 32,807.90 points. The SDAX small cap index rose again to a record high, increasing by 0.7 percent.
According to President Donald Trump, the United States is close to a framework agreement with Tehran and the reopening of the Strait of Hormuz in efforts to end the Iran war. It was “largely” negotiated, Trump wrote on the Truth Social platform. However, he also dampened hopes for a quick agreement: “The negotiations are proceeding in an orderly and constructive manner, and I have instructed my representatives not to rush the deal because time is on our side.” Both sides would have to take their time. “There can be no mistakes!”
According to market analyst Timo Emden from Emden Research, skepticism among investors is likely to continue. Too often, investors recently assumed supposed progress before new threats or geopolitical setbacks caused disappointment. “The decisive factor will probably be whether the political signals are actually followed by reliable agreements this time,” said Emden. The Dax is likely to continue to walk a fine line between relief rally and uncertainty.
Stocks in the aviation and travel sectors reacted particularly positively. The stocks from TUI and Lufthansa were among the top stocks in the MDax with price gains of 4.9 and 3.6 percent respectively. The shares of the engine manufacturer MTU (MTU Aero Engines) were the leaders in the Dax with an increase of 6.1 percent. Airbus shares (Airbus SE) rose by 2.8 percent.
Among the individual stocks, the shares of Delivery Hero continued to be in focus after their dynamic revaluation rally after the US ride-hailing and food delivery company Uber announced a takeover offer of 33 euros per share. For Delivery Hero’s shares, speculation about a bidding war at the top of the MDax rose by almost 12 percent to 37.60 euros. It is the eleventh winning day in a row. The shares thus extended their two-week price rally to almost 90 percent.
Uber already holds a fifth of the shares and has access to other Delivery Hero shares. However, the situation with the food delivery service is extremely dynamic, wrote analyst Andrew Ross from the British bank Barclays. According to a recent report in the Financial Times, Uber rival DoorDash is also interested and Uber is apparently willing to pay 38 euros.
Bayer shares fell 0.3 percent. Brazilian prosecutors had filed a lawsuit against health authority Anvisa and the Brazilian government to ban the use of Bayer’s weedkiller glyphosate.
The Eurozone leading index EuroStoxx 50 rose by 1.95 percent to 6,136.66 points. There was no trading on the stock exchanges in London (FTSE 100), New York (Dow Jones Industrial) and Zurich (SMI) due to the holiday./la/he
— By Lutz Alexander, dpa-AFX —