At the beginning of the new week, the German stock market presented itself without a clear direction. While the standard values largely held their ground, the papers from the second and third row continued their moderate slide from Friday. Losses on Wall Street provided negative impetus in the afternoon.
The Dax closed up 0.19 percent at 15,603.28 points after losing more than one and a half percent in the previous week. The MDax of medium-sized stocks fell on Monday by 0.52 percent to 27,011.95 points.
The Eurozone leading index EuroStoxx 50 ultimately gained 0.28 percent to 4224.87 points. Paris’ Cac 40 was up 0.5 percent, while London’s FTSE 100 was down 0.1 percent. In New York, the Dow Jones Industrial lost 0.7 percent at the European stock market close.
At the start of the week, investors accepted that the lowered lending rates of large Chinese banks had been disappointing overall. The expert Susannah Streeter from the asset manager Hargreaves Landsdown therefore spoke of only a small stimulus for the ailing economy in the Middle Kingdom. In view of the magnitude of the challenges, however, she also mentioned that there is probably hope among investors for even more far-reaching support measures.
Fed decision expected
The focus is now on the central bankers’ meeting in Jackson Hole, which begins on Thursday. According to private bank Metzler, investors will “wait for more concrete indications as to whether the US Federal Reserve still sees an obligation to raise interest rates further.” According to Helaba, the majority remains convinced that the Fed’s rate hikes to date are sufficient.
On the corporate side, the news situation was thin. In the afternoon, Continental shares were significantly influenced by a report by “Manager Magazin”, according to which the automotive supplier is considering major changes. According to the newspaper, there is a focus on tires and non-automotive business areas. The automotive business could be further split up, sold, or brought into alliances with other companies. As the Dax leader, the shares rose by 5.9 percent.
In the MDax, the Redcare papers were the best index member with a plus of 4.6 percent. After a slump of eleven percent on Friday, which was justified with profit-taking, investors accessed the online pharmacy again. Analyst Michael Heider from Warburg Research was even more optimistic about the price development. He raised the target price to EUR 130 and praised “very strong growth momentum” and a supportive regulatory environment.
At Covestro, it was no support that the plastics group, after months of searching, presented Metro manager Christian Baier as a successor to CFO Thomas Toepfer, who was to leave at the end of August. The price was down 1.0 percent.
Vonovia is the biggest loser
Real estate stocks showed weakness because of the ongoing interest rate uncertainty that they usually suffer from. A critical comment on the industry in the “Wirtschaftswoche” clouded the mood. In the Dax, Vonovia was the biggest loser with a discount of 2.6 percent. TAG Immobilien lost 3.7 percent at the end of the MDax.
In the SDax, the titles of the biofuel manufacturer Verbio increased by 2.2 percent. The price gains went hand in hand with rising oil and gas prices. These were justified by supply concerns about an imminent strike by workers at a liquefied natural gas (LNG) plant in Australia.
1.0888 US dollars was last paid for one euro. The European Central Bank set the reference rate at $1.0908 in the afternoon.
On the bond market, the current yield rose from 2.63 percent on Friday to 2.66 percent. The Rex pension index fell by 0.10 percent to 123.57 points. The Bund future fell by 0.61 percent to 130.58 points.
