The Dax remained on the hunt for records on Wednesday. The leading German index closed 0.75 percent higher at 16,656.44 points. In the meantime, it set a new record of 16,727.07 points, another 175 points above its high from the previous day. In the current year-end rally since the October low, the Dax has now gained almost 14 percent. The MDax of medium-sized companies recorded an increase of 0.93 percent to 26,737.58 points in the middle of the week. However, its record high from 2021 is still a long way away.
US job data supports the hope that interest rates will soon fall again. The US private sector created significantly fewer jobs than expected in November. A weakening in the labor market should help the US Federal Reserve in its fight against inflation.
“Even the high price losses at Merck are no longer significant today or are slowing down the development of the DAX,” commented market observer Andreas Lipkow, referring to a decline of 13.1 percent at the pharmaceutical and specialty chemicals group. Merck suffered another setback with its drug evobrutinib for the treatment of multiple sclerosis. Two studies on the safety and effectiveness of the drug did not produce the desired results, it said. The bank HSBC then downgraded Merck shares to “Hold” and removed the sales estimates for the average from the valuation model.
In addition to Merck, Fresenius also disappointed investors in the pharmaceutical and healthcare sectors. The medical group is not allowed to pay a dividend for the current year due to state energy aid. “Fresenius was a safe dividend stock,” said one trader. However, the share price ultimately rose by 0.3 percent. Fresenius Medical Care, on the other hand, fell by 1.4 percent after a cyber attack on a US subsidiary of the blood washing specialist that was carried out in September became known.
The shares of the car manufacturer Volkswagen gained 5.4 percent at the top of the DAX. Slightly positive news came on the subject of Xinjiang: the auditors commissioned by the Wolfsburg-based company said they found no evidence of forced labor in the controversial plant in the Chinese province.
Bayer shares continued their attempt to stabilize with a gain of 2.2 percent, although there was further bad news from the USA. Traders referred to another verdict in a US glyphosate trial against the pharmaceutical and agricultural company, which no longer frightened investors at the low price level.
Hensoldt’s shares fell by 2.1 percent, making them one of the weakest values in the MDax. The defense electronics company wants to take over the defense specialist ESG from Munich. The deal will be worth up to 730 million euros. The purchase is to be financed with a capital increase of up to ten percent and through debts amounting to around 450 million euros.
A positive business outlook caused Tui shares to jump 15.3 percent. The travel group is also considering leaving the London Stock Exchange and returning to the MDax. From the board’s point of view, a stock exchange listing only in Germany could bring advantages to Tui. These included lower costs and a better equity profile.
The Eurozone leading index EuroStoxx 50 temporarily rose to a high since 2007 and ended trading 0.68 percent higher at 4,483.26 points. The French Cac 40 rose similarly significantly, while the British FTSE 100 rose more moderately. In New York, the Dow Jones Industrial was just up at the European close after taking a two-day break in the rally.
The euro moved little below the $1.08 mark and last cost $1.0786. The European Central Bank set the reference rate at 1.0778 (Tuesday: 1.0817) dollars. The dollar therefore cost 0.9278 (0.9244) euros.
On the bond market, the current yield fell from 2.32 percent the day before to 2.28 percent. The Rex bond index rose by 0.15 percent to 126.17 points. The Bund future rose by 0.38 percent to 134.98 points.
