FRANKFURT (dpa-AFX) – The Dax (DAX 40) has fallen further after the weak start to the week. The leading German index fell by 0.60 percent to 15,313.69 points in early trading on Tuesday, at the same level as in March.
The MDAX, an index of medium-sized stocks, fell by 1.07 percent to 25,849.49 points. The Eurozone leading index EuroStoxx 50 (EURO STOXX 50) lost 0.88 percent.
A toxic mix of interest rate and growth concerns is currently weighing on the German stock market. In addition, the DAX chart picture has clouded significantly with the break of the supports of the past few months and the slide below the much-noticed 200-day average lines, which describe the long-term trends.
It is unlikely that this is just a trap for potential sellers and that the weak phase will end quickly, wrote market analyst Jochen Stanzl from the CMC Markt trading company. In his opinion, if there is no wave of buying with a strong upward impulse in the coming days, it could be difficult to bottom out.
According to Stanzl, three factors in particular are currently having a negative impact on the stock market: the Chinese economic downturn and the impending real estate crisis, the dip in the domestic economy including concerns about the real estate and thus also the banking sector, and the rapidly rising yields on the US bond market. Because high interest rates increase the attractiveness of bonds compared to stocks.
Among the weakest stocks in the Dax, the shares of online fashion retailer Zalando remained under pressure, falling by 2.1 percent. Stock marketers drew negative conclusions from current figures from the British online retailer ASOS. Expert Andrew Wade from the analysis company Jefferies spoke of disappointing sales, margin and cash developments, which marked the end of a difficult financial year.
Otherwise, there were significant price movements, especially in the SDAX. At the end of the index, Verbio shares (VERBIO Vereinigte BioEnergie) fell by 10.8 percent. High energy and raw material costs as well as lower sales prices placed a heavy burden on the biopower manufacturer in the last financial year. The company also disappointed with its profit outlook.
The papers from Eckert & Ziegler (EckertZiegler Radiation and Medical Technology) were ahead in the SDax, rising by 8.5 percent. The radiation and medical technology group secured a major order from the USA. This involves the delivery of carrier-free lutetium-177 to the US company Point Biopharma.
Behind Eckert & Ziegler, shares in Amadeus FiRe rose by 6.5 percent. The personnel service provider wants to buy back up to five percent of the current share capital.
The shares of the wafer manufacturer Siltronic and the semiconductor company Elmos (Elmos Semiconductor) recorded gains of four percent each. They benefited from positive analyst comments./la/tih