The strong price fluctuations on the German stock market are continuing due to the turbulence in the banking sector. The Dax, which started weak at first, worked its way into the profit zone by midday and was 0.59 percent higher at 14,854.79 points. It had previously fallen to its lowest level since January.
European Union banking supervisors reaffirmed the stability and resilience of banks in Europe – which helped the market to bounce as it progressed. The MDax of medium-sized companies also made up for its losses, trading 0.07 percent higher at 26,465.18 points. The EuroStoxx 50, the leading index in the euro zone, recorded an increase of 0.78 percent at 4096.86 points.
Initially, however, investors reacted with uncertainty to the emergency rescue of the ailing Credit Suisse. Instead of the hoped-for calming of the financial markets, the opposite was the case. The fear of a conflagration in the banking sector continues to keep investors in its grip after the collapse of three US regional banks and concerns about the difficulties of the major Swiss bank caused high losses last week.
Across Europe, stocks in the banking sector have recently reduced their losses, but investors are concerned about their exposure to certain billion-euro bonds from Credit Suisse, for which a total default is foreseeable. Shares in Deutsche Bank curbed their discount to 1.7 percent. .
In contrast, the papers of the Dax newcomer Rheinmetall, which rose by 4.4 percent at the top of the index, were in demand. Shares in Deutsche Börse continued their recent good run with a premium of 3.7 percent.
