Economic data from China and the fight of the European Central Bank (ECB) against inflation ensured good mood among investors in Europe on Friday. Of the dax rose by 1.4 percent to 13,088 points. The historically large rate hike by the ECB on Thursday and the prospect of further increases in interest rates on both sides of the Atlantic are no reasons for investors to sell off, said investment strategist Jürgen Molnar from the brokerage house Robo-Markets. “While some are avoiding the stock market for the time being, others see the central banks’ consistent and concerted struggle as a good signal and are taking action regardless of the risk of recession.” Investors also took a positive view of the fall in inflation in China. “This gives the People’s Bank of China room for easy monetary policy,” said HSBC economist Erin Xin. According to state media, the government also wants to help the economy, which is weakening due to the corona lockdowns, with tax cuts, among other things.
In terms of individual values, the Telekom share was one of the favorites in the Dax and rose by 3.9 percent. Good news came from the subsidiary T-Mobile US, which has announced a share buyback program of up to around 14 billion euros. As the day before, financial stocks were among the winners. Due to rising interest rates, the financial institutions are waving higher surpluses from the classic lending business. Deutsche Bank shares gained 3.3 percent in the Dax, Commerzbank shares were among the top values in the M-Dax with a plus of four percent.
The falling gas price boosted the titles of the Uniper Group, which was hit by the energy crisis, and they continued their recovery with a price increase of 12.3 percent. Because the group lacks Russian gas, it currently has to buy it expensively on the market in order to fulfill its customer contracts. A lower price therefore plays into Uniper’s hands. Papers from the electronics retailer Ceconomy took the top spot in the S-Dax, expanding their recent gains by a good 17 percent. However, this was preceded by an almost continuous downward slide since the end of 2021.
Investors on Wall Street were also in a buying mood. The leading index Dow Jones ended trading up 1.2 percent.