FRANKFURT (dpa-AFX) – Investors on the German stock market remain confident despite the recent stock market rally. However, after the Dax (DAX 40) jumped to a new interim high since January 2022, they became somewhat more cautious. Moderate profit-taking set in. In the afternoon, the leading German index lost 0.20 percent to 15,776.63 points after temporarily overcoming the 15,900 point hurdle. The MDAX of medium-sized stocks rose by 0.25 percent to 27,857.95 points in the afternoon.
“The US reporting season has brought new impetus to European stocks,” said market expert Andreas Lipkow. Chart analyst Christoph Geyer already sees the record high from 2021 within reach again, even if it is a long way away at 16,290 points.
The beginning of the reporting season got off to a good start on Friday with the first quarterly balance sheets from large US banks. If this continues in the industry, there could be no question of the US Federal Reserve taking an even more cautious stance in its monetary tightening course, noted capital market strategist Jürgen Molnar from Robomarkets. The hope of an interest rate pause could be postponed, which should slow down the buying mood on the stock market.
In line with this, the mood in industry in the economically important US state of New York brightened surprisingly in April. With a level above the zero line, the indicator again signals an increase in economic activity.
Among the individual values in the Dax, RWE was ahead with a plus of 1.3 percent to 40.86 euros. The energy company’s shares benefited from a price target increase by the US bank Citigroup to 48 euros. RWE offers high growth potential and one of the strongest balance sheets in the sector, wrote analyst Piotr Dzieciolowski.
At the bottom, however, were the shares of Commerzbank with minus 3.2 percent. Deutsche Bank (Deutsche Bank) shares fell 2.2 percent. Shares of insurers such as Munich Re (Munich Reinsurance Company) and Hannover Re were among the biggest losers with a loss of just over two percent.
Teamviewer (TeamViewer), on the other hand, was the top performer in the index of medium-sized companies with a plus of 5.6 percent. A buy recommendation from the private bank Berenberg gave fresh impetus to the software company’s share price recovery, which has been faltering since mid-February. Analyst Gustav Froberg sees a trend reversal after difficult years. He explained that many investors are still overlooking the recovery of the business with medium-sized and small companies because they are too fixated on the problems of the past.
Traton (TRATON) rose by 5.5 percent in the SDAX and Nagarro even by 7.0 percent. After a good start to the year, VW (Volkswagen (VW) vz) commercial vehicle holding company Traton is considering raising its forecast for the year. The shares of the IT service provider Nagarro (Nagarro SE) continued their recovery from Friday and benefited above all from the announcement of a share buyback when presenting detailed annual figures for 2022.
Stocks of chip suppliers came under pressure across Europe. Concerns about investment restrictions in the industry weighed on after the Taiwanese business newspaper “Economic Daily News” reported, citing informed people, that the world’s largest chip manufacturer TSMC (Taiwan Semiconductor Manufacturing) wanted to scale back its investments planned for 2023. The shares of Aixtron (AIXTRON SE) fell by 2.4 percent as one of the biggest losers in the MDax.
The euro traded at $1.0951. The European Central Bank set the reference rate at $1.1057 on Friday. On the bond market, the current yield rose from 2.41 percent on Friday to 2.46 percent. The Rex bond index (REX overall price index) fell by 0.19 percent to 125.57 points. The Bund future fell 0.45 percent to 133.76 points./ck/jha
— By Claudia Müller, dpa-AFX —