After the recent recovery, the German stock market has started an eventful week without a clear direction. The DAX fell by 0.24 percent to 18,118.32 points on Monday. In contrast, the MDAX, which represents medium-sized listed companies, closed with a gain of 0.65 percent at 26,344.50 points.
German inflation data had a slight dampening effect on prices. After three consecutive declines, the local inflation rate remained at 2.2 percent in April. Meanwhile, corporate reporting season is currently in full swing. As the week progresses, the quarterly reports from Amazon and Apple will highlight the business developments of other tech giants that have the potential to influence the overall market.
In addition, the eagerly awaited US Federal Reserve meeting is on the agenda for Wednesday (May 1st holiday). Along with the figures from Amazon and Apple, this meeting is likely to determine “where the stock market could go in the not-so-easy month of May,” noted analyst Konstantin Oldenburger of CMC Markets. However, the market is not expecting a reduction in key interest rates for Wednesday, it was said.
The most important European trading venues saw mostly moderate declines. The Eurozone’s leading index, the EuroStoxx 50, fell by around half a percent. In Paris, it fell by around 0.3 percent, while the London Stock Exchange ended just above the mark. The New York leading index, the Dow Jones Industrial, was around 0.2 percent higher at the end of European trading.
Deutsche Bank’s recently strong stocks lost 8.6 percent at the end of the Dax on Monday. In the protracted legal dispute with former shareholders of the acquired Postbank, the largest German financial institution is preparing for a high additional payment. According to corresponding statements from the Cologne Higher Regional Court, the institute is expected to set aside 1.3 billion euros in the second quarter.
After a downgrade, Siltronic’s shareholders had to cope with a share price decline of 2 percent. This made the wafer manufacturer’s shares one of the biggest losers in the MDax, but remained well above Friday’s low, which they had slipped to after a forecast was lowered. Analyst Tim Wunderlich from Hauck Aufhäuser Investment Banking justified the deletion of his buy recommendation with price pressure and a weak company balance sheet.
At sports car manufacturer Porsche AG, a surprisingly significant decline in sales and profits in the first quarter resulted in a share price loss of 2.8 percent. The majority of analysts were not surprised by the business development.
The shareholders of the stock market returnee Douglas were able to enjoy a share price increase of 4.1 percent at the beginning of the week after several analysts began monitoring the share with buy recommendations and price targets above the current valuation level. The price went into decline after the IPO in March and has recently only recovered with difficulty.
The euro was last traded at $1.0718. The European Central Bank set the reference rate at $1.0720 in the afternoon.
The current yield on the bond market fell from 2.64 to 2.57 percent. The Rex bond index rose by 0.39 percent to 124.19 points. The Bund future gained 0.35 percent to 130.68 points.
