FRANKFURT (dpa-AFX) – Before the US interest rate decision, the Dax (DAX 40) continued its recent winning streak on Wednesday and surpassed the record high that was only a few weeks old. The continued cooling of inflation in the US nourishes hopes for a less tight one monetary policy in the coming months and is also driving the German stock market higher, noted analyst Konstantin Oldenburger of CMC Markets. In the US, inflation at the manufacturer level weakened again in May.
The Dax rose to a high of 16,336.27 points in the morning and was last listed 0.5 percent higher at 16,307.87 points. It thus expanded its previous annual plus to around 17 percent. The MDAX for medium-sized companies increased by 0.3 percent to 27,567.03 points on Wednesday. The EuroStoxx 50 (EURO STOXX 50) rose by 0.7 percent.
A large majority of market participants and economists expect that the US monetary authorities will initially pause interest rates after ten increases in a row. At least as important as the interest rate decision, however, are statements about the further course of monetary policy. It is currently still expected that the Fed will pay another one in July rate hike could consider.
The shares of Porsche SE (Porsche Automobil vz) benefited from a buy recommendation from the private bank Berenberg and climbed to their highest level for more than three months. Most recently, the papers of the Volkswagen holding company were up 1.4 percent.
K+S (K+S) shares fell to their lowest level since November 2021 after a profit warning. The price slide of up to 9.7 percent was triggered by the fertilizer company’s warning that the achievement of the annual targets was unlikely due to the price trend for potash fertilizers. Most recently, the shares recovered to minus 3.2 percent.
thyssenkrupp stocks increased by 2.1 percent. Federal Economics Minister Robert Habeck (Greens) was confident on Wednesday that a planned billion-euro subsidy for a plant for green steel production in Duisburg will also be formally approved by the EU Commission in the summer. However, traders did not see any real course driver in the message that was already emerging the evening before.
Heidelberger Druck (Heidelberger Druckmaschinen) is cautious for the new financial year (end of March) due to the ongoing cost pressure. Sales and profitability (adjusted Ebitda margin) should remain at the level of the previous year. The shares of the printing machine manufacturer lost 5.1 percent.
The shares of Wacker Neuson (Wacker Neuson SE) gained 6.6 percent. The construction machinery manufacturer wants to keep the pace of growth high in the coming years and become more profitable. By 2030, group sales should grow to four billion euros and a profit margin before interest and taxes of over eleven percent should be achieved. A retailer rated the news quite positively, but complained that the margin target does not look exactly ambitious.
Compugroup (CompuGroup Medical SECo) shares fell 4.8 percent after a negative study. Analysts at the US investment bank Morgan Stanley see less good price opportunities for the software provider specializing in medical practices and hospitals than other stocks in the sector and downgraded them from “equal weight” to “underweight”.
The travel group Tui Deutschland (TUI) is benefiting from strong demand. One looks at a strong summer season “and in the last few weeks for the first time again with guest numbers above 2019,” said Germany boss Stefan Baumert. That’s why Tui ordered more contingents in some destinations. Tui shares rose by 5.1 percent.
The euro was last traded at $1.0825. The European Central Bank had set the reference rate at $1.0793 the day before. The dollar had cost 0.9265 (0.9289) euros. On the bond market, the current yield rose by 2.43 percent on the previous day to 2.50 percent. The Rex bond index (REX overall price index) fell by 0.38 percent to 124.94 points. The Bund future remained at 133.49 points./edh/jha/
— By Eduard Holetic, dpa-AFX —
Image sources: Julian Mezger for Finanz Verlag