Geopolitical crises and less hope for significantly falling interest rates temporarily pushed the Dax towards its annual low on Tuesday. In the afternoon, the German leading index reduced its loss somewhat. In the end it closed 0.30 percent lower at 16,571.68 points. The ups and downs of the German stock market barometer of the past few weeks continued between around 16,450 points and the record high of just over 17,000 points. The MDax of medium-sized stocks fell by 1.11 percent to 25,698.02 points on Tuesday.
Analysts and market observers cited the increasing geopolitical dangers from the Ukraine war to the Middle East conflict to the tense situation on the Red Sea as a burden on stocks. This could also increase the risk of inflation again. And this comes at a time when market participants have only just somewhat reduced their recently high expectations of interest rate cuts in the new year.
The armaments sector is once again benefiting from the numerous armed conflicts. Rheinmetall posted a record profit of 1.5 percent in the Dax. Hensoldt gained 3.5 percent at the top of the MDax.
Europe’s banking sector, however, suffered from a study by the US bank JPMorgan. In view of still low interest rate forecasts, analyst Kian Abouhossein cut the profit estimates for the financial institutions for 2025 and 2026. In the Dax, Commerzbank was in last place with a loss of 4.9 percent. Deutsche Bank lost 0.5 percent.
Qiagen shares topped the DAX with a gain of 2.5 percent. There were vague rumors circulating late in trading here about a takeover of the diagnostics service provider.
As the annual reporting season gradually began, Hugo Boss’s quarterly figures were not well received at all. The papers fell by almost 10 percent in the MDax. The fashion group disappointed with its profitability.
At the top of the SDax small cap index, the stocks of the active ingredient researcher Morphosys jumped by almost 13 percent. The bank Morgan Stanley downgraded it, but at the same time expressed optimism about Pelabresib. News about the blood cancer drug had already moved Morphosys’ share price significantly last year.
The medical and security technology group Drägerwerk wants to significantly increase its dividend. Shares gained 1 percent.
Prices fell slightly across Europe: the Eurozone leading index EuroStoxx 50 fell by 0.18 percent to 4,446.51 points. The Cac 40 in Paris and the FTSE 100 in London also fell.
The euro fell below the $1.09 mark and in the evening the common currency cost $1.0889. The European Central Bank (ECB) had previously set the reference rate at $1.0882.
On the bond market, the current yield rose from 2.19 percent the day before to 2.21 percent. The Rex bond index fell by 0.10 percent to 126.11 points. The Bund future lost 0.21 percent to 134.97 points in the evening.
