A somewhat lower inflationary pressure in Germany has the dax at best saved from an even bigger setback on Wednesday. The leading German index lost 1.7 percent to 13,000 points after temporarily being down more than two percent below the 13,000 point mark before the data was published. Inflation in Germany slowed somewhat in June. According to an initial estimate by the Federal Statistical Office, consumer prices were 7.6 percent above the level of the same month last year. Experts had expected an average of 7.9 percent. Concerns of a global recession continued to dominate the stock markets, as experts assume that inflationary pressure will remain high.
Shares in European real estate companies came under pressure after a negative analyst report by Bank of America. The corresponding sector index Stoxx Europe 600 Real Estate fell by more than three percent. In Germany, the shares of Germany’s largest housing group Vonovia in the Dax lost 2.4 percent in value, while Aroundtown’s shares in the M-Dax fell by 6.5 percent.
A surprisingly strong quarterly result made investors grab the shares of Hennes & Mautitz (H&M). The Swedish fashion retailer’s stocks rose 2.2 percent in Stockholm. There are also first signs that the recently tense situation in the supply chain is gradually improving, the group said. However, high inflation is a concern, which could result in consumers spending less on clothing. Speculations about a sale of the US subsidiary Grubhub caused shares in the online food delivery service Just Eat Takeaway (JET) in Amsterdam to fall by 16.5 percent to a record low. The boss of Grubhub told a report by the Wall Street Journals that a sale of the US subsidiary is not imminent. “This announcement disappoints the market because everyone wants JET to completely divest itself of Grubhub,” said Bryan Garnier analyst Clement Genelot.
The US stock exchanges recorded slight price gains. The leading index Dow Jones was listed 0.3 percent higher at 31,047 points in the middle of trading.