Economic fears wipe out initial gains in the leading index. In addition, some company balance sheets are causing price movements, while the Uniper share continues its recovery after the recent price slumps.
The surprising interest rate cut in China dampened the mood of investors in Europe for the summer and rekindled concerns about the economy. With the reduction, the Chinese central bank braced itself against the economic slack in the wake of the Corona crisis. After a roller coaster ride, the closed dax slightly higher at 13,817 points on Monday. Signs of declining US inflation had given the stock exchanges a strong boost in the past few days. As a result, the US Federal Reserve’s interest rate pace remained the main theme on the market. Investors were hoping for information about this from the minutes of the most recent Fed meeting, which are due to be published in the USA next Wednesday. The falling Rhine level proved to be of little help to the stock market. This threatens restrictions on shipping on the transport route that is so important for the economy.
In addition, some company balance sheets came into the focus of investors. In the Dax, Henkel’s shares were up 0.5 percent after the quarterly figures were presented. The consumer goods group increased sales significantly in the first half of the year and has therefore increased its sales forecast for 2022. However, rising material and logistics costs weighed on profits. The top favorites in the leading German index were Hellofresh shares, which rose by 2.7 percent. Experts saw light and shade in the details of the quarterly figures, but also referred to rather optimistic management statements about the recently lowered annual targets.
In the M-Dax, Encavis shares rose by 5.5 percent. The wind and solar plant operator earned around 16 percent more in the first half of the year than in the same period last year. Uniper stocks defied persistently high gas prices and the impact of low Rhine water levels. The papers of the ailing energy group rose by four percent and thus continued their recent recovery. In addition, the gas surcharge announced on Monday should help to save systemically important gas importers from October.
On Wall Street, investors acted cautiously after the recent price gains. Of the Dow Jones was 0.1 percent up at 33,816 points in the middle of trading.