Hopes for more moderate rate hikes in the US drove the Dax a little further on Friday. It was also well received that the Chinese leadership relaxed its strict corona regulations somewhat. The time that travelers have to spend in quarantine has been slightly reduced.
The leading German index climbed to 14,263 points in the morning, another high since June. The Dax really got going on Thursday afternoon after the publication of US economic data, which showed a surprisingly significant weakening of inflationary pressure in October. Since Wednesday he has gained up to 4.4 percent, the weekly plus was almost 6 percent at the daily high. On Friday afternoon, the Dax was still around 0.4 percent up at 14,205 on a daily basis.
The MDax gained 1.5 percent to 25,639 points. Its weekly plus was 25,782 points, more than 8 percent at times. The leading eurozone index, the EuroStoxx 50, rose by 0.6 percent at the end of the week.
“Yesterday the interest rate specter took off, which drove technology stocks in particular upwards,” wrote analyst Jochen Stanzl from broker CMC Markets. Inflation in the USA has probably peaked. According to the consumer price data from the previous day, the top of the key interest rate in the USA is now seen again at 5 percent and no longer at 5.25 percent. Real estate stocks throughout Europe also benefited from this – the weakest sector of the year so far. Banks, meanwhile, lagged behind the market rally.
Thomas Altmann, portfolio manager at QC Partners, sees a “worldwide signal effect”. Expectations of the turnaround in interest rates in Europe have also fallen. According to Altmann, the German stock market will now be exciting to see how the Dax reacts after jumping over 14,000 points. On the one hand, he sees a kind of compulsion to buy from investors who have been too cautious to date and who are guided by fixed investment models. Some others, however, could already “get scared of heights”.
The Dax was led by Zalando with an increase of 8 percent. Since Wednesday, the papers have even gained 23 percent. The shares of the food supplier Delivery Hero in the MDax posted double-digit percentage gains at times. In two days they even started more than a third. Aroundtown and TAG real estate stocks continued to recover, showing continued active bargain hunters. In the SDax of the smaller stock exchange stocks, the shares of the ailing utility Uniper gained double digits.
On the other hand, the previous Dax annual winner Telekom has a hard time continuing to score points with its defensive qualities. T-Shares continue to come back from their 2002 high. After the forecast was confirmed, Salzgitter securities gained up to almost 9 percent in the strong sector environment.
In the second-tier segment, shares from the Cantourage Group celebrated an extremely successful initial listing. The company says it wants to revolutionize the medical cannabis market. The shares have shot up 162 percent since the morning – albeit with manageable trading volume.
The euro continued its recovery as US interest rate speculation faded to its highest level since August at $1.0317. The European Central Bank set the reference rate below par at $0.9954 on Thursday afternoon.
On the bond market, the current yield fell from 2.15 percent on the previous day to 2.04 percent. The Rex pension index rose by a significant 0.63 percent to 127.65 points. The Bund future lost almost one percent to 139.07 points.
