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FRANKFURT (dpa-AFX) – Before the eagerly awaited US interest rate decision, the Dax (DAX 40) was able to further expand its strong initial gains by midday. At the start of trading, the leading German index had managed to jump well above the psychologically important mark of 14,000 points. Most recently, the Dax was up 3.08 percent at 14,346.36 points. “The hope of a ceasefire in Ukraine and the relaxation in the energy sector gives investors a sigh of relief,” wrote Timo Emden from Emden Research. As a result, oil prices continued to fall.
Boost came from a recovery in the Chinese stock market and from Wall Street, where prices rose the previous evening in the wake of the sharp fall in oil prices. In addition, there are still vague hopes of progress in the negotiations between Ukraine and Russia. Although the fighting continues unabated, relatively mild tones from Russian Foreign Minister Sergey Lavrov provided further impetus on the financial markets. There is “a certain hope of reaching a compromise,” Lavrov said on Wednesday to the channel of the Russian newspaper “RBK”.
The MDAX for medium-sized stocks recently advanced by 3.19 percent to 31,321.82s points. The leading eurozone index, the EuroStoxx 50 (EURO STOXX 50), rose even more sharply by around three and a half percent to 3869.80 points.
While developments in Ukraine remain firmly in the focus of stock market players, investors are now looking to the USA with great excitement. In view of the recently very high inflation, the US monetary authorities are likely to start the turnaround in interest rates in the evening with an increase to a range of 0.25 to 0.50 percent. Such an interest rate hike is now considered priced in on the stock market.
Two years ago, the US Federal Reserve lowered the key interest rate to almost zero at the beginning of the Corona crisis. According to Dekabank, speculation about a large interest rate hike at the beginning was off the table because of the Ukraine war. It will also be interesting to see how many further rate hikes the Fed’s central bankers are expecting this year and next.
On the German stock market, the current price movement was carried in particular by the losers of the last few trading days. Bargain hunters suspected market observer Andreas Lipkow behind it. “The fear of missing out on price performance is breathing down the necks of institutional investors.” In the Dax, the recently shaken shares of the recipe box mail order company HelloFresh were at the top with more than nine percent.
Banks also did well before the expected turnaround in interest rates, Deutsche Bank, for example, rose by more than five and a half percent, Commerzbank by around eight percent. The industry also benefited from an analyst recommendation by Barclays.
At Eon (EON SE), however, the unexpectedly strong figures for the past year and the outlook approved by analysts were not enough: the shares were slowed down with the industry, with a price increase of 0.7 percent they did far worse than the Dax at the end Market. On the other hand, in a generally strong environment for car stocks, investors also forgive BMW’s more cautious margin outlook. The carmaker’s shares rose by around three percent.
While the shares of the medical technology group Carl Zeiss Meditec benefited from a buy recommendation from the Swiss UBS with an eight percent premium in the MDax, surprisingly strong annual figures in the lower rows of the stock exchange brought the IT service provider Nagarro (Nagarro SE), listed in the SDAX, a price increase of almost nine percent. The laboratory service provider SYNLAB went up by two percent after unexpectedly good figures and an increased sales forecast./tav/mis
— By Tanja Vedder, dpa-AFX —