The Dax returned briskly above the 15,000 point mark on Tuesday. The recovery that started the day before after the first shock related to the Credit Suisse bailout continued the day before the US interest rate decision.
After three quarters of an hour, the leading index increased by 1.27 percent to 15,122.81 points. The MDax gained 1.47 percent to 26,983.84 points and the leading euro zone index, the EuroStoxx 50, rose by 1.4 percent.
In the course of the ongoing uncertainty in the European banking industry, the Dax had dropped to its lowest level since the first days of the year at the beginning of the week. However, it then managed an impressive recovery of more than 500 points at times, as relief over the rescue of Credit Suisse finally prevailed in the banking sector. This was the case on Tuesday: Commerzbank and Deutsche Bank shares recovered up to 4.8 percent at the top of the Dax.
The prospect of a slower pace of interest rate hikes by the US Federal Reserve was also seen as a factor that attracted investors again. When the Fed announces its interest rate decision on Wednesday, monetary authorities are likely to become more cautious given the recent turmoil in the banking sector, it is believed. According to Commerzbank, the market is no longer fully pricing in an interest rate hike of 25 basis points, but only sees a small chance for it.
Commerzbank expert Antje Praefcke compares the US interest rate decision with reaching into a box of chocolates. “To my memory, never before has expectations diverged so widely before a Fed rate meeting, from 0 to 25 to 50 basis points,” she wrote. That is also understandable, since the problems in the banking sector came from the USA. Even before Credit Suisse, a few smaller banks there got into trouble.
With 2.7 percent, the RWE shares were a larger Dax winner. With a view to the final annual report of the energy group, traders mentioned a solid outlook as positive, but also the dividend outlook for 2023. At one euro, the payout for this year should be higher than previously thought.
There were numbers in the Dax index family from Amadeus Fire. The personnel service provider’s titles rose by six percent due to an optimistic outlook. The company expects further growth in sales and operating profit in the new financial year. Shareholders are also expected to receive a significantly higher dividend for 2022.
The opposite was the case for Pfeiffer Vacuum in terms of price, with a discount of 0.6 percent, the shares were a rare loser in the SDax. The vacuum pump specialist expects lower profits in day-to-day business this year due to higher costs. Traders judged that the outlook was disappointing in terms of margins.
Thyssenkrupp, on the other hand, was one of the clear MDAX winners with 3.5 percent. Here, after an article in “Handelsblatt”, the future of the steel division comes into focus. It states that the investment bank Goldman Sachs, which was commissioned with the sale, has at least found an interested party in the financial investor CVC. Even if there is only a symbolic amount of one euro in the room, there will be new impetus in the matter, according to a dealer.
There was still news from Vantage Towers, where it went down by half a percent. Unsurprisingly, the shares of the ex-Vodafone subsidiary should disappear from the market after just a little more than two years of being listed. The company’s board of directors has signed a contract with the new owner Oak Holdings to withdraw from the stock exchange, the radio tower operator, which is currently still listed in the MDax, announced.
