Hopes for a more moderate monetary policy from the central banks gave the stock market further momentum on Tuesday. The leading German index expanded its gains over the course of the day and closed 3.78 percent higher at 12,670.48 points – the third trading day in a row. The MDax for medium-sized companies also made good ground with a price increase of 3.65 percent to 23,498.80 points.
“The mood on the stock market can hardly change faster and clearer,” commented analyst Konstantin Oldenburger from broker CMC Markets. “Investor hopes for a soft landing of the economy are reviving, and they are based on central banks around the world at least slowing the pace of their monetary tightening, or eventually ending it altogether.”
In particular, the disappointing mood data from US industry published on Monday had allayed investors’ concerns that the US Federal Reserve would tighten the reins on monetary policy even further, according to the experts at Credit Suisse.
Adidas and Puma are recovering
Technology and chip stocks on the German stock market were firm in line with Europe-wide trends. Infineon gained seven percent among the top values in the Dax, for SAP it went up by almost four and a half percent. Hopes of somewhat less pressure from central banks drove the rate-sensitive sector.
Shares in sporting goods manufacturers Adidas and Puma each recovered six percent from their recent losses in the wake of Nike’s disappointing quarterly results. At the top of the Dax, Zalando rose by more than eight percent. The shares of the online fashion retailer had fallen to their lowest level since 2014 last week.
RWE’s three percent price increase was only enough for a place in the lower middle of the Dax. The energy supplier, whose shares had benefited from a billion-dollar takeover in the United States the previous day, now wants to bring the phase-out of coal forward by eight years to 2030. At the same time, two power plant blocks should continue to run until spring 2024, which according to the current legal situation should actually be shut down at the end of the year.
The euro rose sharply again
In the small-cap index SDax, the leasing specialist Grenke impressed with the raised target for this year’s new business: the shares took first place with a price jump of almost twelve percent.
The media stocks ProSiebenSat.1 and RTL Group posted price losses of one and a half percent and almost half a percent respectively. While ProSiebenSat.1 was unable to inspire investors with a surprising change in leadership, the announcement by competitor RTL that it would retain its stake in French TV industry colleague M6 was probably disappointing.
The euro rose sharply and most recently cost 0.9981 US dollars. The European Central Bank (ECB) had previously set the reference rate at $0.9891.
On the bond market, the current yield fell from 2.01 percent on the previous day to 1.70 percent. The Rex pension index rose by 1.61 percent to 130.02 points. The Bund future gained 0.64 percent to 141.67 points.
