The German stock market did not take a clear direction on Wednesday. While the standard stocks ultimately continued their recovery from the day before with a slight gain, the majority of stocks from the second and third rows clearly went down. Overall, investors remained cautious despite a better-than-expected Ifo business climate index for October.
In the afternoon, the Dax hovered around its previous day’s closing price and closed with an increase of 0.08 percent at 14,892.18 points. The MDax of medium-sized companies, however, lost 1.64 percent to 24,023.31 points.
“Investors on the Frankfurt Stock Exchange continue to see things on sight and don’t really trust yesterday’s stabilization (…),” wrote market expert Jürgen Molnar from the broker Robomarkets. The geopolitical and monetary policy situation is still too uncertain.
There was a moderate increase on the leading European stock exchanges in the middle of the week. The EuroStoxx 50 gained 0.2 percent to 4073.35 points. France’s Cac 40 and Britain’s FTSE 100 each rose 0.3 percent. In New York, the Dow Jones Industrial rose by 0.2 percent at the close of European trading.
The DAX received support from the quarterly balance sheets of some companies. In the morning, Deutsche Bank, Porsche AG, Beiersdorf and the flavor manufacturer Symrise presented their reports for the third quarter. Deutsche Bank shares rose by 8.2 percent at the top of the DAX. Symrise grew by 4.0 percent.
At Deutsche Bank, RBC analyst Anke Reingen praised the good capital resources. There could also be higher dividends to shareholders here. With regard to Symrise, Charlie Bentley from Jefferies bank noted that the flavor manufacturer had recently grown more strongly than expected.
Beiersdorf shares also benefited from their quarterly report, gaining 1.8 percent. Thanks to good business with the Nivea and Labello brands, the consumer goods group is becoming more optimistic for the current year. Porsche AG’s shares, however, lost 0.4 percent according to the quarterly figures.
Deutsche Telekom shares gained 1.3 percent thanks to the quarterly figures of its subsidiary T-Mobile US, which surprised positively in terms of operating profit and the number of new mobile phone contracts.
Among the second-line stocks, Traton fell by 0.6 percent. Although VW’s commercial vehicle subsidiary has become more optimistic for the current year, the market had already expected this. At asset manager DWS, the IT conversion will be significantly more expensive than previously expected, with shares losing 4.0 percent.
Shortly before the close of trading, Süss Microtec disappointed investors with weak quarterly figures and a gloomy outlook for the year. The shares of the semiconductor industry supplier ultimately fell by more than 11 percent.
The euro last cost 1.0586 US dollars. The European Central Bank (ECB) set the reference rate at $1.0576 in the afternoon.
On the German bond market, the current yield rose from 2.79 percent the day before to 2.84 percent. The Rex bond index fell by 0.12 percent to 123.32 points. The Bund future recently lost 0.58 percent to 128.07 points.
