The disappointment on Wall Street over the statements made by the US Federal Reserve also slowed down the German stock market on Thursday. Towards the end of the first hour of trading, the Dax fell by 0.83 percent to 13,146.92 points. Mixed quarterly reports could not push the leading index. The MDax fell more significantly by 1.57 percent to 23,377.71 points, while the leading eurozone index EuroStoxx 50 lost around one percent.
Investors were not comforted by the fact that the US Federal Reserve, according to its own statements, could raise its key interest rates less significantly in December than in the past. Jerome Powell pointed out that it was “very premature” to think about a pause in interest rate hikes that investors were hoping for in the future. There is still “some way” to go when it comes to interest rates. It takes time and patience to keep inflation down. As expected, the US Federal Reserve raised its key interest rate by 0.75 percentage points yesterday.
Against the background of the interest rate perspective, the papers of banks and insurers were still the most stable in Europe on Thursday because they are considered potential beneficiaries of high interest rates in their everyday business. In the Dax, Hannover Re leveled off at an increase of 0.6 percent. Investors reacted with relief to the fact that the previous profit target was oriented downwards due to the damage caused by Hurricane “Ian”, but the range is still considered achievable.
On the other hand, there were larger losses in the auto sector, partly because of BMW. According to figures, the title of the car manufacturer lost three percent. The confirmed annual targets were not convincing: According to RBC analyst Tom Narayan, many investors had hoped for a higher outlook. The deductions at Mercedes-Benz, VW and Continental ranged from 1.4 percent to 3.7 percent.
At Zalando, investors didn’t quite know how to deal with the quarterly report: the course fluctuated between gains and losses. Most recently, the turn into plus was achieved again with 1.7 percent. This year, the online fashion retailer is aiming for the lower end of the previous target ranges.
Real estate values remained under pressure because high interest rates are affecting their market environment and increasing financing costs. With Patrizia and Dic Asset, two companies lowered their profit forecasts. The courses of the two SDax values then slipped by 6.6 and 3.3 percent.
In the SDax, the shareholders of the Shop Apotheke were particularly badly hit with a price slide of 13 percent. They suffered from another setback when introducing e-prescriptions in Germany. The Association of Statutory Health Insurance Physicians in the only pilot region, Westphalia-Lippe, is suspending the introduction of electronic prescriptions.
