The Dax ended the last trading day of a strong stock market year with a moderate increase. The positive mood on the German stock market was supported by the US stock markets, which are expected to make profits and also continued their record run on Thursday before ultimately closing little changed.
In the shortened business, the German leading index gained 0.30 percent to 16,752 points. This meant it remained close to its record high, which was reached in mid-December at just over 17,000 points. There was only a small increase of 0.3 percent in the week with the shortened holiday and an increase of just over three percent in December, but for the last quarter the profit amounts to almost nine percent. For the year as a whole there was a whopping increase of 20.3 percent.
The MDax of medium-sized companies rose by 0.27 percent to 27,137 points on Friday, which means a total annual increase of 8.0 percent.
The central topic in 2023 was the development of inflation and thus the key interest rate on both sides of the Atlantic. Concerns about further rising interest rates and also about “high interest rates for a longer period of time” alternated with hopes that interest rate peaks would soon be reached. This led to many a downturn in the summer, but also to record runs for the German stock market barometer. In recent weeks, hopes have ultimately resulted in growing expectations that interest rates will fall in the near future. The result was a brilliant rally on the US stock exchanges and here too, driving the indices to record highs.
According to Thomas Altmann, portfolio manager at asset manager QC Partners, the new year will be a reality check. “Then it remains to be seen how much risk the stock market investors are taking at the start of the year. And whether they are really prepared to invest larger sums at the current price levels.”
Winner and Loser
On Friday, attention also turned to the “tops and flops” of the year in the Dax. The favorite in 2023 was the Rheinmetall share, which, despite doubling its price, was able to gain another 54 percent in 2022. Thanks to the strong development, the arms company was promoted to the leading index in March. As a result of Russia’s war of aggression against Ukraine, Western countries are currently investing more money in armaments.
Zalando shares, on the other hand, fell the steepest in the Dax with a loss of around 35 percent, continuing the decline from the previous year. In 2022, the online fashion retailer’s share price had already lost more than half. Customers’ reluctance to buy due to high inflation and economic uncertainty weighed on the fashion industry, as did high inventories and sales with high discounts.
The stock exchanges across Europe are not yet closed. The EuroStoxx 50 recently rose by 0.38 percent to 4,532 points in the early afternoon. A similar increase was recorded in Paris. In London, where the stock exchange is already closed, a small increase of 0.14 percent was recorded. A friendly final day of trading was announced on New York’s Wall Street.
The euro last cost 1.1055 US dollars. The European Central Bank set the reference rate significantly higher on Thursday at $1.1114.
On the bond market, the current yield rose from 1.95 percent the day before to 2.03 percent. The Rex bond index fell by 1.26 percent to 127.43 points. The Bund future fell by 0.56 percent to 137.40 points.
