The German leading index Dax closed on Tuesday with a plus of 1.75 percent at 15,195.34 points. Investors were already positioning themselves for the US interest rate decision in the middle of the week. In view of the problems in parts of the banking sector, they are opting for a more moderate monetary policy. At the same time, fears of major upheavals in the banking sector continued to decrease. The MDax gained 1.60 percent on Tuesday to 27,018.71 points.
The other European stock markets also continued their recovery from the start of the week: the EuroStoxx 50, the leading index in the euro zone, ended 1.5 percent higher. France’s Cac 40 was up 1.4 percent and Britain’s FTSE 100 was up 1.8 percent. In New York, the Dow Jones Industrial gained around 0.5 percent at the European close.
The prospect of a slower pace of interest rate hikes by the US Federal Reserve was seen as support for the stock market. Many investors are hoping that when the Fed announces its interest rate decision on Wednesday, monetary authorities will become more cautious because of the recent turbulence in the banking sector. According to Commerzbank, the market is no longer fully pricing in a rate hike of 0.25 percentage points.
The relief that major upheavals had been avoided continued to dominate in the banking sector, as shown by the strong price gains at Commerzbank (up 7.4 percent) and Deutsche Bank (up 6.1 percent). Both values were clearly at the top of the Dax.
With a price increase of 1.4 percent, the RWE papers were in the middle of the Dax. Looking at the energy group’s final annual report, traders positively mentioned solid annual targets. Thyssenkrupp was one of the biggest MDAX winners with a plus of 4.5 percent. Here, after an article in “Handelsblatt”, the future of the steel division comes into focus. According to the information, the financial investor CVC is said to be interested in a takeover.
The prices of German Bunds fell significantly. While the current yield rose from 2.02 percent the previous day to 2.23 percent, the Rex bond index fell by 1.11 percent to 125.96 points. The Bund future recently lost 1.30 percent to 136.08 points.
The euro last cost 1.0770 dollars. The European Central Bank (ECB) had set the reference rate at $1.0776 in the afternoon.
