The German stock market, which was recently burdened by interest rate concerns, rose significantly on Monday. The Dax closed 1.13 percent higher at 15,381.43 points, at times it rose by almost 1.8 percent. On Friday, the Dax had lost around 1.7 percent and also posted a loss of the same amount the previous week. The MDax of medium-sized stocks gained 0.89 percent on Monday to 28,678.93 points.
Economic data from the USA provided a positive impetus, temporarily alleviating concerns about sharply rising interest rates. Durable goods orders fell more than expected in January, giving an indication of companies’ propensity to invest. The US stock exchanges were also on the road to recovery, but recently lost some momentum like the Dax.
In principle, investors are still concerned about inflation and interest rates, as rising interest rates make bonds appear more attractive than stocks. The yield on ten-year Bunds rose to its highest level since 2011. On Friday it became known that the PCE price index, which is determined on the basis of consumer spending and is particularly watched by the US Federal Reserve, not only rose more significantly in January than in December. It was also ahead of market expectations, which should give the Fed pause.
At the beginning of the week, however, the higher inflation rate in the USA does not seem to be interpreted as a burden for the stock market, but rather as a sign of picking up economic activity. “Market participants are counting on an imminent economic recovery in Europe and are positioning themselves accordingly in the shares of Covestro and Siemens, among others,” said market observer Andreas Lipkow. Both papers gained around 1.6 percent.
At the top of the Dax, Commerzbank shares rose by 4.6 percent. The financial institution has returned to the Dax after around four and a half years. All other things being equal, this should have a beneficial effect on liquidity, wrote analyst Timo Dums of DZ Bank.
Adidas shares went up 1.4 percent. They benefited from the hope of fewer than feared burdens from the end of the partnership with Kanye West.
The EuroStoxx 50, the leading index in the euro zone, closed 1.66 percent higher at 4248.01 points. France’s Cac 40 was up 1.5 percent and Britain’s FTSE 100 was up 0.7 percent. The New York Dow Jones Industrial rose by around 0.2 percent compared to the European one. At the same time, yields fell on the US bond market, giving equities room to stabilise.
The rather disappointing US economic data weighed on the US dollar. The euro was last quoted at $1.0594. The European Central Bank set the reference rate at 1.0554 (Friday: 1.0570) dollars. The dollar thus cost 0.9475 (0.9461) euros.
On the bond market, the current yield rose from 2.49 percent on Friday to 2.60 percent. The Rex pension index fell by 0.53 percent to 124.26 points. The Bund future lost 0.43 percent to 133.53 points.
