Interest rate concerns on both sides of the Atlantic gave equity investors a hard time on Friday. Of the dax lost 1.6 percent to 13,674 points. “The mood on the stock market is bad and there are no incentives to buy shares in the current environment,” said Jürgen Molnar, capital market strategist at RoboMarkets. Investors are primarily focusing on the interest rate policy of the US Federal Reserve. Fed chief Jerome Powell had initially ruled out further hikes on a larger scale of 75 basis points after the interest rate hike by 50 basis points on Wednesday. But many doubted that a tightening of the Fed’s pace would be off the table in the coming weeks.
On the corporate side, Adidas took the spotlight. After a slump in profits at the beginning of the year, the sporting goods group is reducing its expectations for 2022. The shares in the Dax temporarily slipped by almost seven percent. The reason for the dwindling optimism is business in China, which is suffering from calls for boycotts against Western brands and the recent corona lockdowns in large cities. “The industry’s biggest growth market is likely to remain a problem for Adidas, at least in the short term,” said RoboMarkets’ Molnar. Rival Puma’s shares fell 1.6 percent. In the M-Dax, RTL had to give up feathers at the beginning of the year despite sales growth. The shares of the television group fell by 5.7 percent. According to a retailer, sales figures were slightly below market expectations. On the other hand, investors in SAF-Holland were happy about price gains of 13.3 percent. After an increase in the first quarter, the Bavarian truck supplier raised its sales forecast for the full year. On the London Stock Exchange, British Airways parent IAG suffered a surprisingly high quarterly loss and cut full-year targets, falling 8.3 percent.
It fell on Wall Street Dow Jonit by 0.4 percent. The focus was on the labor market report. In the USA, more jobs were created in April than expected. The government said 428,000 new jobs were created last month.
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