The German stock market barely moved on Thursday after the holiday break. On the first trading day in May, the focus was on reviewing the interest rate decision in the USA, but also on the preview of the US labor market report on Friday. Investors lacked certainty and therefore also had buying arguments. These also did not come from new economic data from the Eurozone.
The Dax fluctuated within a relatively narrow range around its previous day’s level and closed with a loss of 0.20 percent at 17,896.50 points. The MDax fell by 0.05 percent to 26,252.41 points.
The Fed will soon raise interest rates again?
There was more movement on the other leading European stock exchanges. The Eurozone leading index EuroStoxx 50 fell by 0.6 percent. In Paris, the CAC 40 lost 0.9 percent. In contrast, the London trading center was in good shape: the FTSE 100 gained 0.6 percent. The New York leading index Dow Jones Industrial was around 0.5 percent higher at the end of European trading.
In the middle of the week, US Federal Reserve Chairman Jerome Powell once again dampened hopes of interest rate cuts. It could take “longer than previously thought” for the Fed to gain more confidence that high inflation is really on the decline. However, Powell also countered concerns that the next interest rate move could even be an increase.
Bayer shares, one of the biggest losers so far this year, rose 2.9 percent to the top of the DAX. Once again, legal disputes in the USA caused a stir. One trader referred to the “second major legal victory in a short period of time” because an appeals court in the US state of Washington overturned a ruling against the chemical and pharmaceutical company in the dispute over the chemical PCB, which has been banned for decades.
Investors continued to take profits on MTU shares, ultimately resulting in a price drop of 2.8 percent. On Tuesday they initially reacted positively to the engine manufacturer’s quarterly figures and expanded their recovery to almost 10 percent since mid-April.
Hugo Boss initially had a strong start to trading after the fashion group performed better than expected in the first quarter. After the CFO’s more cautious tone regarding the China business, the price then turned significantly into the red. In the end the loss was 6.9 percent.
Upward trend for Borussia Dortmund thanks to game success
For Borussia Dortmund it went up by 5.1 percent. The football club has a chance of reaching the Champions League final thanks to a 1-0 win against Paris Saint-Germain. At the same time, he was able to secure a starting place in the lucrative European elite league again because it is clear that the Bundesliga will get an additional starting place there in the coming season.
The euro was last traded at $1.0704. The European Central Bank set the reference rate at $1.0698 in the afternoon.
The current yield on the bond market remained at 2.59 percent. The Rex bond index fell by 0.02 percent to 124.00 points. The Bund future rose by 0.45 percent to 130.52 points.
