The Dax continued its descent on Tuesday. Investors on the German stock market continued to hold back in view of concerns about the economy and rising interest rates. Some support brought a rally on Wall Street just before the Frankfurt close. The leading German index thus closed 0.43 percent lower at 12,220.25 points. With the fifth weak trading day in a row, the strong price gains in the Dax from the beginning of October are increasingly being consumed.
The MDax of medium-sized companies also continued its series of losses on Tuesday and fell significantly by minus 1.26 percent to 22,192.30 points.
Meanwhile, important events such as Wednesday’s minutes from the US Federal Reserve’s latest meeting and Thursday’s US inflation data are already casting their shadows. Stock market observers such as Michael Hewson from CMC Markets are expecting restraint on the stock markets until then.
Both dates in the US have the potential for further price capers, wrote stock market expert Konstantin Oldenburger from CMC Markets. “Accelerating fears of inflation and recession could then finally bring the stock market to its knees.” The next few days should now decide “whether investors’ fears and concerns are justified or not,” he added. In November, investors feared another interest rate hike by the Fed by 0.75 percentage points.
In Germany, Qiagen stood out at the top of the Dax with a price increase of almost six percent. They were driven by recent merger rumors – the “Wall Street Journal”, citing insiders, had reported on talks with US competitor Bio-Rad Laboratories that had been going on for some time. Speculations about a partnership have been circulating for some time about Qiagen. The day before, the share price had suffered from a downgrade by the investment bank Oddo BHF.
Weak sales figures from the Swiss flavor and fragrance manufacturer Givaudan pushed the papers of the competitor Symrise down a good three percent. The bad mood also weighed on the chemical industry across Europe, and a rather pessimistic-sounding industry study by Morgan Stanley also cost the shares part of the lavish gains of the previous day.
In this wake, the shares of the chemical dealer Brenntag slipped to their lowest level since November 2020 – they closed a good 8.7 percent lower. Among the other members of the industry, BASF fell by four percent and Covestro and Evonik each by more than three percent.
Otherwise, numerous analyst comments moved the courses. In the MDax, the forklift manufacturer Kion was one of the best values with a price increase of more than three percent. Bank of America now recommends buying the paper. Analyst George Featherstone sees a good investment opportunity after the profit warning and the price slide to a record low.
In the small-cap index SDax, Instone continued its descent with a price slide to a new record low and took last place at the end of the day with a ten percent discount. The trigger was a negative comment from the British investment bank Barclays.
After a roller coaster ride, Vitesco shares closed 0.7 percent higher after the drive specialist commented on planned growth with electric car components. Investors were ultimately convinced that the company, which has been listed since September 2021, intends to pay the first dividend for the 2023 financial year.
Europe’s most important stock markets also fell further on the second trading day of the week under the weight of ongoing economic concerns. The leading European index EuroStoxx 50 fell by 0.49 percent to 3340.35 points. While the minus on the Paris stock exchange was rather moderate, the London FTSE 100 recorded significant losses – there, the sales of the heavily weighted oil and commodity stocks had a particularly negative impact.
The New York leading index Dow Jones Industrial continued to expand its gains until the end of trading in Europe and was last listed at 0.9 percent. The tech-heavy Nasdaq 100 reduced its losses to around half a percent.
The euro recently rose to $ 0.9761. The European Central Bank had previously set the reference rate at $0.9723 (Monday: $0.9697). The dollar had thus cost 1.0285 (1.0313) euros.
On the bond market, the current yield rose from 2.05 percent on Monday to 2.20 percent. The Rex pension index fell by 0.96 percent to 126.86 points. The Bund future fell 0.07 percent to 136.47 points.
