The Dax started to recover on Monday. A breather in the banking crisis and an improvement in sentiment in the German economy ensured a good mood at the beginning of the week. The leading German index rose by 1.27 percent to 15,147.57 points by midday. On Friday it had dropped by 1.7 percent. The MDax of medium-sized stocks recorded an increase of 1.30 percent to 26,828.72 points at the beginning of the week. The Eurozone leading index EuroStoxx 50 went up by one percent.
Sentiment in the German economy improved in March despite the recent turbulence in the banking sector. The Ifo business climate increased surprisingly significantly. It is the fifth increase in the economic barometer in a row. The supposed banking crisis has so far only turned out to be a storm in a financial teacup, wrote market observer Andreas Lipkow. However, imponderables in the financial sector in particular often result in noticeable economic cooling tendencies.
The shares of Commerzbank and Deutsche Bank gained 3.7 and 5.2 percent, respectively, among the best values in the Dax. The price for hedging against payment defaults on Deutsche Bank bonds has recently fallen somewhat.
“Deutsche Bank is not the next Credit Suisse,” said the experts at the analysis firm Kepler Cheuvreux, referring to the recent emergency rescue of the Swiss. The most pressing concern at the moment is the commitment to financing US commercial real estate. But it was made very transparent and easy to handle.
