The US interest rate decision and hopes for a somewhat less rigid monetary policy gave the German stock market new impetus on Thursday. The Dax climbed above its previous high for the year from mid-January and reached its highest level since mid-February 2022. Around noon it gained 1.57 percent to 15,419.10 points. The MDax for medium-sized companies increased by 2.03 percent to 29,436.26 points. The EuroStoxx 50, the leading index in the euro zone, rose by 1.2 percent.
As expected, the Fed raised its key interest rate by 0.25 percentage points and held out the prospect of further monetary tightening. In New York, the Dow Jones Industrial pared losses as technology stocks went into rally mode. In addition, there were strong results from the social media group Meta as a mood driver. Shares in the Facebook and Instagram group jumped around 20 percent in pre-market US trading.
In the further course of Thursday, eyes are now primarily on the European Central Bank (ECB), which, like the Bank of England, will announce its interest rate decision in the afternoon. Many bank economists expect interest rates to rise another 0.5 percentage points.
At the bottom of the Dax, Deutsche Bank shares fell by two percent. Analyst Anke Reingen from the Canadian bank RBC spoke of “mixed results” from Frankfurt. Deutsche Bank posted its highest profit in 15 years in 2022, but also benefited from a positive tax effect. The shares of DWS, the fund subsidiary of Deutsche Bank, lost around five percent according to quarterly figures in the SDax of the smaller stock market stocks.
In the downturn in the global economy, the chip group Infineon continues to draw on robust demand from the energy transition and electromobility. The titles went up more than six and a half percent. The tech rally in the USA provides additional momentum and Siltronic also benefited from this in the MDax with a plus of seven percent. The wafer manufacturer grew strongly in 2022. One trader called the outlook for 2023 “proper”.
Investors rewarded better prospects for Siemens Healthineers with growth of more than seven percent. The most recent quarterly figures from the medical technology company probably played a somewhat smaller role in the price growth than the outlook for further business development. JPMorgan analyst David Adlington expects the supply chain situation to improve.
Real estate values posted significant gains. The cautious tendency that interest rates may not be raised as much in the future and that there could even be a pause in interest rate hikes or interest rate cuts is providing a boost, according to traders. Aroundtown and TAG Immobilien in the MDax gained more than six percent in some cases, while Vonovia in the Dax gained more than four percent.
