The prospect of US key interest rates remaining high for the time being has weighed on the Dax. After initial losses, the leading German index temporarily turned positive. At the end, however, it lost 0.26 percent to 16,859.04 points, which meant that it remained slightly above the daily low reached shortly before. This increased the gap to the record high of around 17,000 points from December. The MDax of medium-sized companies ultimately lost 0.22 percent to 25,902.90 points.
As expected, the US Federal Reserve left interest rates unchanged on Wednesday and made it clear that it was not yet ready to cut interest rates. Fed Chairman Jerome Powell said they were prepared to maintain the high level for longer. Observers do not expect a rate cut until after the next meeting in March at the earliest. So far it appears that the Fed has managed to slow down price increases without completely slowing down the economy. The upcoming figures from other US technology giants caused additional restraint on Thursday.
Investors also acted cautiously on the European markets. The Eurozone leading index EuroStoxx 50 fell by almost 0.2 percent. Things also went downhill in London and even more so in Paris. The New York leading index Dow Jones Industrial lost 0.2 percent at the end of European trading.
The current reporting season dominated trading activity in Frankfurt. In the end, investors at Siemens Healthineers were able to enjoy a share price increase of 4.4 percent and the top spot on the DAX. The medical technology group increased its operating result (EBIT) by eight percent in the first quarter, meeting analysts’ expectations.
Deutsche Bank was also at the top of the leading index, with its shares gaining three percent. With a view to the end of the year, analysts attested that the institute’s business figures were rather mediocre. However, the outlook and the announced significant increase in dividends and share buybacks weighed more heavily on investors. The Frankfurt-based company is also planning further savings through job cuts. In the Dax, the sporting goods manufacturer Adidas was one of the biggest losers with a price decline of 2.1 percent. A gloomy outlook dampened the mood here.
The euro recovered and was last quoted at $1.0874. The European Central Bank (ECB) had previously set the reference rate at 1.0814 (Wednesday: 1.0837).
The current yield on German federal bonds fell from 2.22 percent the day before to 2.21 percent. The Rex bond index rose by 0.13 percent to 126.36 points. The Bund future gained 0.24 percent to 135.93 points.
