FRANKFURT (dpa-AFX) – The Dax (DAX 40) is heading for further gains on Monday despite the unresolved US debt dispute. Three quarters of an hour before trading began, the X-Dax signaled an increase of 0.1 percent to 16,290 points. The leading German index would thus increase for the fourth day in a row, but initially remain just below the record high of 16,331 points reached on Friday. Its euro zone counterpart EuroStoxx 50 (EURO STOXX 50) is expected to be little changed on Monday morning.
The markets are already pricing in an agreement in the dispute over the US debt ceiling, which is why “the positive price effects should remain limited even in the event of a compromise,” writes portfolio manager Thomas Altmann from QC Partners. “After last week’s summit storm, the main thing for the Dax today is to defend what has been achieved.” It is important that he does not slip too far from his new record.
According to Stephen Innes of SPI Asset Management, investors are anything but doomed, but they are always ready to slow down. He thinks a deal by early June is likely, but the timing is unclear.
This Monday, US President Joe Biden and the chief negotiator for the opposition Republicans, Kevin McCarthy, want to meet again for a top-level discussion. Time is of the essence: At the beginning of June, the US government is threatened with a default if Biden’s team does not reach an agreement with the Republicans in Congress on raising the debt ceiling by then.
According to the “Handelsblatt”, the online broker flatexDEGIRO, which is listed in the SDAX small-cap index, has new problems with the financial regulator Bafin. According to the report, this examines whether the Frankfurt-based fintech company has fulfilled its obligations to publish price-sensitive information. The broker denied to the “Handelsblatt” that it had violated transparency obligations in the cases in question.
The shares of Borussia Dortmund (BVB (Borussia Dortmund)) shot up before the market after the football club overtook record champions Bayern Munich on the penultimate day of the Bundesliga match and now has the best cards for the championship.
Otherwise, analyst studies could move. Shares in pharmaceutical and laboratory equipment maker Sartorius (Sartorius vz) came under some pressure after US bank Morgan Stanley downgraded them to equal weight. The British bank Barclays downgraded the shares of the chemicals trader Brenntag (Brenntag SE) because of a high valuation compared to the industry and now votes “underweight”.
Meanwhile, the private bank Berenberg canceled its buy recommendation for Hornbach Holding (HORNBACH) and only recommends the shares with “Hold”. Analyst Benjamin Thielmann referred to an unexpectedly gloomy outlook for the Baumarkt-Holding./gl/mis
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