FRANKFURT (dpa-AFX) – At the end of what has been a positive stock market week so far, the German stock market could run out of steam. Just under an hour before the start of trading, the X-Dax (DAX 40) as an over-the-counter indicator for the leading German index signaled a decline of 0.51 percent to 13,158 points. On a weekly basis, however, this indicates a solid plus of around 2.3 percent for the leading index. The EuroStoxx 50 (EURO STOXX 50) was expected to be around 0.5 percent lower on Friday morning.
The day before, the Dax had risen despite the unexpectedly clear rate hike in the euro zone and the renewed government crisis in Italy have shown amazing resilience. In view of the record high inflation, the European Central Bank (ECB) had raised the key interest rate by 0.5 percentage points, more than many had expected. With the resignation of Italian Prime Minister Mario Draghi, fears are growing that the highly indebted country could once again pose a threat to the European Union and the euro.
“There is still a lack of convinced buyers,” said portfolio manager Thomas Altmann from QC Partners with a view to the Dax. The leading German index should therefore initially not pick up on the price rally in late trading on Wall Street. There, the Dow Jones Industrial (Dow Jones 30 Industrial) had climbed to its highest level in six weeks.
From a company perspective, the focus of investors should be on the reporting season again on Friday. The electronics retailer Ceconomy (Ceconomy St) felt the effects of the clouded consumer climate in the third business quarter and therefore lowered its annual targets. Weaker demand, the development of inflation and sharply rising energy costs are having a particularly negative impact on the regions of Germany, Austria and Switzerland. The share lost 8.8 percent on the Tradegate trading platform before the market in comparison to the Xetra closing price.
The IT service provider Nagarro (Nagarro SE), on the other hand, raised its sales target for the second time this year. The proceeds are now expected to be around EUR 800 million, around EUR 30 million higher than previously announced. Profitability (Ebitda margin) should remain at 14 percent for the year as a whole. On Tradegate, the Nagarro papers recently rose by 2.6 percent.
The energy technology group Siemens Energy has received a major order for the connection of several wind farms in the North Sea. This is the largest offshore grid connection order in the company’s history. Industry circles are talking about an order volume of almost one billion euros. The share certificates gained 1.5 percent on Tradegate./edh/men