On the German stock market, investors held back a bit on Tuesday. After the most important indices had risen quite significantly in the morning, they came under pressure as trading progressed. A renewed slide in real estate shares, which are currently suffering greatly from the unfavorable mix of rising interest rates and high inflation, proved to be a particular burden.
At midday, the leading index Dax was up 0.12 percent at 15,145.35 points after rising by up to 0.9 percent in early trading. The MDax of medium-sized stocks fell by 0.33 percent to 26,625.82 points. The euro zone leading index EuroStoxx 50 went up 0.11 percent.
The slide in real estate values continued after a breather at the beginning of the week. The European sector index Stoxx Europe 600 Real Estate has extended its series of losses since the beginning of February and fell by 2.7 percent at the end of the sector overview.
The real estate industry is suffering from the fact that high inflation and the associated rise in key interest rates brought the long boom in Germany to an abrupt end. Because higher interest rates make it more difficult to refinance real estate and reduce their future value from today’s perspective – further depreciation is imminent.
This is currently hitting the shares of commercial real estate specialist Aroundtown particularly hard, which hit a record low on Tuesday and most recently dropped by 10.4 percent at the end of the MDax.
Among the other MDax stocks, TAG Immobilien 4 and LEG Immobilien lost 5.6 percent. In the Dax, Vonovia’s shares held the red lantern with a minus of 5 percent. Among the weakest stocks in the SDax small-cap index, Grand City Properties fell by 5.4 percent and Deutsche Wohnen by 3.9 percent.
