Investors put a damper on the German stock market in the middle of the week. After largely directionless trading, the Dax turned negative on Wednesday afternoon. Ultimately, the leading index lost 0.55 percent to 16,023.13 points. The MDax for medium-sized companies fell by 0.51 percent to 26,582.45 points.
The leading eurozone index, the EuroStoxx 50, ended trading at a discount of just under 0.5 percent. The leading indices in Paris and London also recorded moderate losses. The Dow Jones Industrial on Wall Street was stable at the previous day’s level at the European stock market close.
“Almost all” members of the Monetary Policy Committee expected that interest rates would have to be raised “a little” further this year in order to bring inflation down to the 2 percent target in the long term, US Federal Reserve Chairman Jerome Powell reiterated, according to an advance spread on Wednesday Address to US House Financial Services Committee Recent Pronouncements.
Real estate values, which are particularly sensitive to interest rates, were under the greatest pressure in Europe. In addition to the reluctance at the Powell speech, British inflation data for May also contributed to the negative mood for the industry. Vonovia lost 2.1 percent in the Dax. In the MDax and the SDax small-cap index, too, investors avoided stocks such as LEG, Aroundtown and Grand City Properties.
Investors reacted somewhat coldly to Volkswagen’s medium-term outlook. The preferred shares of the car company ultimately lost 0.9 percent. VW wants to reduce the investment rate from currently around 14.5 percent to under 11 percent of sales by 2027, and even to around 9 percent by 2030.
Deutsche Post titles suffered from a disappointing earnings outlook from US competitor Fedex and lost 2.6 percent. The US logistics group had also reported a decline in profits for the fourth fiscal quarter. For the competition from Europe, the development at Fedex is a bad signal, said a trader.
Adidas led the list of winners in the Dax with a price increase of 4.3 percent after HSBC had upgraded the shares of the sporting goods manufacturer and now recommends buying them. The first signs of more brand dynamics are there, analyst Zuzanna Pusz justified her more positive assessment. The new strategy should provide an additional boost from 2024. In addition, the high pressure on margins in the industry is disappearing.
The IT service provider Cancom wants to buy back its own shares with a volume of up to almost 10 percent of the share capital over the next twelve months. The share certificates purchased shall be used for all legally permissible purposes. The titles at the top of the SDax rose by 4.2 percent.
The euro was last traded at $1.0953. The European Central Bank set the reference rate at $1.0923 in the afternoon. On the bond market, the current yield fell from 2.57 percent on the previous day to 2.50 percent. The Rex pension index rose by 0.24 percent to 124.77 points. The Bund future fell 0.24 percent to 133.38 points.
