FRANKFURT (Dow Jones) — After yesterday’s rally, the German stock market closed with small losses on Friday. The DAX lost 0.2 percent to 15,476. At times, the index was listed significantly lower. A far more unusual than expected US job market triggered new interest rate concerns. The number of employees increased by 517,000 in January, the forecast was only 187,000. However, wage growth slowed to 4.4 percent from 4.8 percent in December. DWS spoke of a “reassuring signal for central bankers”. Despite the tense situation on the job market, there is no indication that a “wage-price spiral” is starting, commented CMC.
The announcement of the producer prices in the euro area did not move. And this despite the fact that, contrary to expectations, they rose in December compared to the previous month. The annual rate, on the other hand, fell. The data series is probably considered outdated because it dates back to the previous year and energy prices have continued to fall since then. ECB President Christine Lagarde had expressed more optimism about the macroeconomic environment the day before. Lagarde assesses the inflation risks as more balanced, and the growth risks are also more balanced. In addition, the supply chain problems would decrease.
Capital cut at Leoni
Leoni reacted to the news that a new financing solution would not come about without significant contributions from equity and debt capital providers with massive discounts. “The ongoing negotiations give reason to expect that there will be no solution without a capital cut by the shareholders,” the company said. The background is that all financial creditors would also have to make extensive concessions in order to enable the company to continue in the long term by converting financial liabilities into equity (debt-to-equity swap) to reduce the group’s debt. Just a few days ago, Leoni CEO Aldo Kamper surprisingly announced his resignation from his position as CEO. Leoni collapsed by 43.8 percent.
Real estate stocks took profits after the previous day’s rally: Vonovia lost 2.8 percent and LEG Immobilien 3.1 percent. Aroundtown was down 4.7 percent. In the SDAX, SGL Carbon rose by 12.5 percent to EUR 8.75 after Stifel had increased the price target to EUR 13 from EUR 9. Hapag-Lloyd, on the other hand, lost 0.4 percent, and the Stifel analysts downgraded the share to “Sell”. Software AG shares fell 3.7 percent – Deutsche Bank had lowered the price target here.
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INDEX last +/- % +/- % YTD
DAX 15,476.43 -0.2% +11.15%
DAX future 15,506.00 -0.4% +11.33%
XDAX 15,459.36 -0.6% +11.47%
MDAX 29,778.59 -0.1% +18.56%
TecDAX 3,338.57 +0.1% +14.29%
SDAX 13,494.83 -0.0% +13.16%
last +/- ticks
Bund future 138.15 -125
Index winners losers and turnover million euros million shares previous day
DAX 17 23 0 3,944.5 78.2 124.9
MDAX 24 26 0 713.4 40.4 50.1
TecDAX 9 20 1,923.9 29.1 30.4
SDAX 31 32 7 160.1 10.2 13.9
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(END) Dow Jones Newswires
February 03, 2023 11:49 ET (16:49 GMT)
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