The German stock market rose in the middle of the week, ending a strong month of November on a positive note. The Dax closed on Wednesday with an increase of 0.29 percent at 14,397.04 points. The monthly gain of the leading German index thus totals around 8.6 percent. The MDax of medium-sized stocks increased by 0.93 percent to 25,593.23 points on Wednesday.
The Eurozone leading index EuroStoxx 50 gained 0.77 percent. Paris’ Cac 40 and London’s FTSE 100 rose about 1 percent. The leading US index, the Dow Jones Industrial, was hardly changed at the end of trading in Europe.
Exceptional recovery series
Experts from the major British bank HSBC were impressed by the “fine weather period” in the Dax, which has lasted for a little over eight weeks in a row. The share barometer has only done something like this five times in its entire history since 1988. “There has never been more than ten positive weeks in a row. This shows how extraordinary the current recovery series is.”
Economist Thomas Gitzel from VP Bank in Liechtenstein wrote about the inflation rate in the euro area, which fell to 10.0 percent year-on-year in November: “The head of the European Central Bank (ECB), Christine Lagarde, will be sympathetic to the November inflation data.” The somewhat lower rate could confirm those ECB council members who advocated a rate hike of “only” 0.50 percentage points in December, he added.
Car titles are in demand
From an industry perspective, consumer goods stocks and car stocks were favored across Europe, which was also reflected in the Dax. BMW, VW and Mercedes gathered among the top values and increased by 1.5 to 3.0 percent.
SAP rose 1.3 percent, Software AG 1.9 percent and Suse 8.3 percent. According to dealers, the support for the German software industry comes from overseas. In the US, Workday had convinced after the close of trading with quarterly figures and the outlook for the rest of the fiscal year.
Reclassifications also came into focus. Among others, UBS analyst Polo Tang now recommended buying United Internet shares. Germany is a good market for the telecom industry – but with specific challenges, he wrote. United Internet reacted as the MDax leader with a gain of 5.4 percent.
The euro was last traded at $1.0321. The ECB had set the reference rate at $1.0376 in the afternoon. On the bond market, the current yield rose from 1.89 percent the day before to 1.92 percent. The Rex pension index fell by 0.34 percent to 127.52 points. The Bund future fell by 0.02 percent to 140.98 points.
