Surprisingly high US consumer prices had a noticeable impact on the German stock market on Tuesday. The leading index DAX lost 0.92 percent to 16,880.83 points. The MDax of medium-sized stocks even fell by 1.42 percent to 25,724.51 points.
Capital market strategist Jürgen Molnar from the trading house Robomarkets had previously warned that the inflation data could move the market significantly as it was a decisive factor for the US Federal Reserve’s monetary policy direction. Although inflation weakened in January, it only fell to 3.1 percent instead of the expected 2.9 percent. Hopes for rapid and significant interest rate cuts received a further blow with these data. However, central bankers at the Fed had recently curbed overly high expectations with reference to the uncertain development of inflation.
Only more clarity about future macroeconomic trends should allow the Fed to cut key interest rates in the future, wrote Tobias Basse from Landesbank NordLB. In his opinion, only major problems at the US regional banks could trigger a rapid reduction in the current interest rate range of 5.25 to 5.50 percent.
Against this background, the very interest rate-sensitive technology stocks came under particularly strong pressure. The shares of the chip manufacturer Infineon lost five percent at the end of the Dax.
Despite the gloomy market mood, Rheinmetall shares continued their record run and rose 4.6 percent above the DAX peak. CDU defense expert Roderich Kiesewetter had called for the Bundeswehr’s special pot to be tripled to 300 billion euros in the “Süddeutsche Zeitung” in order to make it competitive. A spokesman for the Union parliamentary group meanwhile told the German Press Agency: “Mr. Kiesewetter’s proposal is not the opinion of the CDU/CSU parliamentary group.” Hensoldt were nevertheless taken along and rose by 5.7 percent as by far the best MDax value. Stock market newcomer Renk even gained a good 15 percent.
Siltronic’s shares fell by four percent. Due to continued weak demand, the wafer manufacturer expects a significant decline in operating profit, stagnating sales and a doubling of depreciation. A trader spoke of a great disappointment, as no improvement is expected in 2024 and, on top of that, the dividend for 2023 has been significantly cut.
In the SDax small cap index, Norma Group recovered slightly with an increase of 1.6 percent. The final quarter of the connection technology specialist was better than expected. According to the figures presented, Thyssenkrupp Nucera expanded on its recovery gains from the previous day and rose by 4.7 percent at the top of the index. The electrolysis specialist once again grew strongly in the first quarter of the financial year.
The Eurozone leading index EuroStoxx 50 closed 1.20 percent lower at 4689.28 points. The Paris Cac 40 index and the London FTSE 100 each lost almost one percent. In New York, the Dow Jones Industrial fell by more than one percent at the close of trading in Europe
The euro suffered from US inflation data and was last trading at $1.0717. The European Central Bank had previously set the reference rate at 1.0793 (Monday: 1.0773) dollars. The dollar therefore cost 0.9265 (0.9282) euros.
The current yield on the bond market remained at 2.38 percent. The Rex bond index rose by 0.26 percent to 125.50 points. The Bund future lost 0.32 percent to 133.16 points.
