FRANKFURT (dpa-AFX) – On Monday, the German stock market continued the upward trend that began before the weekend with momentum. The Dax (DAX 40) closed with a sharp increase of 2.40 percent to 13,402.27 points and thus at the highest level for around three weeks. From the afternoon, Wall Street, which was strong again, was a stirrup holder for further price gains. The MDAX of medium-sized stocks ended trading 1.89 percent higher at 26,186.80 points.
Despite all the economic and political risks, investors took heart, according to the market, after the leading German index closed above the psychologically important mark of 13,000 points on Friday after a long struggle. Even the prospect of an increasingly restrictive monetary policy the investors at the moment cold.
According to Konstantin Oldenburger of CMC Markets, the Ukrainian army’s recent successes in the war against Russia also provided some tailwind. However, he considered hopes for a recovery from the energy crisis to be premature. Stock market observer Andreas Lipkow spoke of a cautiously positive mood on the market: “Investors are trying to position themselves for a potential economic recovery in the next six to nine trading months, but without having to accept too many unnecessarily risks.” Accordingly, at the start of the week, investors mainly focused on cyclical stocks, such as car shares.
In line with the strong European industry, Daimler Truck and Mercedes-Benz (Mercedes-Benz Group (ex Daimler)) led the Dax (DAX 40) with price increases of more than five percent each.
The economically sensitive retail stocks were also in demand, in Germany, for example, Zalando rose by around five percent, for competitor ABOUT YOU it went up by 5.7 percent. The Telekom papers (Deutsche Telekom), which are considered defensive, lost almost one percent at the end of the Dax.
With the strong market, Hellofresh (HelloFresh) was able to turn their initially high losses into an increase of around 2.6 percent by the end of trading. In the morning, the shares of the cook box mailer had lost almost 7 percent at times. The trigger was the health warning from a US agency for certain minced meat packages in the group’s meal sets in July. After all, there have been no such complaints so far, commented a dealer.
The badly battered shares of TAG Immobilien made it onto the winners’ podium in the MDAX with a premium of 6.3 percent. Just last week they fell to a low since the end of 2014, now they benefited from a buy recommendation from the analysts at Kempen.
The leading euro zone index, the EuroStoxx 50 (EURO STOXX 50), also started the new trading week with strong gains and rose by 2.14 percent to 3646.51 points. The leading stock exchanges in Paris and London grew at a similar rate. In New York, the Dow Jones Industrial (Dow Jones 30 Industrial) pared some of its early gains and was up about 0.4 percent at the European close.
The euro cost almost 1.0133 US dollars in evening trade after its high for almost four weeks. During the course of the day, the European common currency had temporarily climbed to its highest level since mid-August. The European Central Bank (ECB) had set the reference rate at $1.0155 (Friday: $1.0049) in the afternoon.
On the bond market, the current yield fell from 1.61 percent on Friday to 1.58 percent. The Rex bond index (REX overall price index) rose by 0.21 percent to 130.98 points. The Bund future rose by 0.58 percent to 144.37 points./tav/jha/
— By Tanja Vedder, dpa-AFX —