Mixed economic signals from the euro zone brought losses to the Dax on the second trading day of the week. The leading German index moved a little further away from its highest level for more than a year, but remained just within its range of the past few days. Investors are now waiting for fresh impetus from Wall Street, which returns from the long weekend on Tuesday. Losses were evident here.
After a slow start, the Dax lost 1.04 percent to 15,316.87 points towards the end of the first hour of trading. Since the high for the year two weeks ago at 15,658 points, the leading German index has recently made no more progress – mainly because interest rate concerns have boiled up again. The MDax lost 0.80 percent on Tuesday to 28,573.78 points.
According to Landesbank Helaba, the mood in industry was disappointing, while there were renewed improvements in the service sector. The Helaba expert Ulrich Wortberg said: “There is no reason for the economic optimism to intensify, because overall the figures suggest weak economic momentum.” According to the expert, this will probably not deter the European Central Bank from raising interest rates.
Globally, investors are currently focusing on fresh data from the USA, which is decisive for the monetary policy of the US Federal Reserve. Fresh impetus could emanate from the US bond market, where yields had risen sharply in the past few weeks in anticipation of further increases in key interest rates. Rising capital market interest rates had recently caused share prices to fluctuate on the leading US stock exchanges.
On the company side, analysts’ assessments in particular had a price-moving effect, including a negative assessment of Deutsche Börse by the analyst firm Jefferies and a positive assessment of Lufthansa by Barclays Bank.
For the titles of the German stock exchange, it went down by 3.1 percent as the Dax tail light. Jefferies lifted the buy recommendation for the exchange operator’s shares. Market expectations for 2024 and 2025 now seem quite ambitious, as analyst Tom Mills argued. He therefore sees correction risks that could weigh on the shares despite their moderate valuation.
Lufthansa’s shares, on the other hand, rose by 1.9 percent at the top of the MDax after they had been included in the rating by Barclays with the positive “overweight” vote.
