FRANKFURT (Dow Jones) — The German stock market said goodbye to trading on Wednesday a little easier. The DAX fell by 0.3 percent to 14,340 points in quiet business. We were only looking for the car values.
British market participants, who are already starting their long weekend, caused some selling pressure. Thursday and Friday are public holidays in the UK. In addition, there is no trading on Whit Monday in many countries except Germany.
the “big” rate hike by 50 basis points in Canada had been expected by the market. The increase in the ISM index for industry was well received in the USA, with a simultaneous slight decrease in price pressure. The focus is now on the Fed’s beige book in the evening.
Inflation shock in the German retail trade
The consequences of the inflation shock in Europe, with prices rising by more than 8 percent, are now becoming clear: In German retail, sales of foodstuffs fell by 7.7 percent compared to the previous month – the greatest sales slump since the start of the time series in 1994. Overall, sales fell across all areas by 5.4 percent compared to the previous month.
“Many goods are not on the shelf, but in the container in a port in China,” said Klaus Wohlrabe from the Ifo Institute. Stocks like Ceconomy fell 1.6 percent, Zalando fell 6.6 percent. According to Alexander Krger, chief economist at Hauck & Aufhuser Lampe, inflation will continue to depress consumption and even expects real income to fall this year.
Car values wanted – DWS under pressure
The industry favorite across Europe was the auto sector with a plus of 1.3 in the industry index. Mercedes-Benz, BMW and VW increased by up to 2.1 percent, Porsche and supplier Vitesco even by 4.0 and 4.1 percent respectively. Here there were hopes that the delivery backlogs would be resolved by easing the Chinese anti-corona policy.
SAP increased by 0.5 percent after good figures from US competitor Salesforce. Their CEO reported good demand and little headwind from inflation developments.
Online pharmacies were disillusioned with the new schedule for introducing e-prescriptions. Zur Rose fell by 2.4 percent and Shop Apotheke by as much as 6.1 percent. The market had expected faster steps and a Germany-wide introduction of the recipe.
Asset manager DWS fell another 6.2 percent. The Deutsche Bank subsidiary (-0.8%) replaces its manager, Asoka Whrmann, after the general meeting on June 9th. The day before, “greenwashing” allegations had prompted a house search. However, retailers were surprised about the legal basis, since there is no binding framework for ESG criteria.
Rheinmetall climbed by 2.0 percent. The new major order in the automotive sector shows that not only the armament sector is promising, it was said.
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INDEX last +/- % +/- % YTD
DAX 14,340.47 -0.3% -9.72%
DAX future 14,317.00 -0.4% -9.69%
XDAX 14,324.90 -0.7% -9.61%
MDAX 29,750.33 -0.5% -15.30%
TecDAX 3,143.38 -1.0% -19.82%
SDAX 13,710.60 -0.6% -16.47%
last +/- ticks
Bund future 150.83 -80
Index winners losers and turnover million euros million shares previous day
DAX 14 26 0 3,553.0 69.5 150.1
MDAX 19 31 0 601.6 31.3 95.3
TecDAX 9 20 1,644.2 21.4 55.3
SDAX 31 38 1,213.2 12.4 21.4
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(END) Dow Jones Newswires
June 01, 2022 11:52 ET (15:52 GMT)
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