Shares – Dax slide ended for the time being – economy

The war in Ukraine is sending Europe’s stock markets on a rollercoaster ride. However, the Dax can recover at the end of trading. Car shares are sold because the manufacturers lack important production parts.

The war in Ukraine had the German stock market firmly in its grip on Wednesday. The nervousness remained high. Nevertheless, it succeeded dax after a slump to the lowest level in about a year, a recovery shortly before the end of trading. The leading index closed 0.7 percent up at 14,000 points. Stock markets were buoyed by hopes for the next round of talks between Russia and Ukraine, sources said.

While more and more sectors came under pressure on the stock exchange, armaments stocks continued to benefit from the planned additional billions in spending for the German armed forces. Thyssenkrupp shares rose by two percent. The papers of the armament electronics manufacturer Hensoldt continued their rally with a premium of 17 percent at times, in the Dax MTU and Airbus were well ahead with growth of more than five percent each. Rheinmetall shares, on the other hand, closed three percent lower, although the papers had marked a record high in early trading. In view of the sharp rise in commodity prices, stocks from commodity producers and traders were also in demand. The price gains of Aurubis, Salzgitter and Klöckner & Co ranged from 1.2 to more than four percent. Last but not least, a failure of Ukraine as a steel exporter could lead to a shortage of supply on the European markets, wrote Jefferies analyst Alan Spence.

Auto stocks, on the other hand, were under pressure. The shares of VW, Porsche Holding, Mercedes-Benz and BMW fell by up to 3.6 percent. The car manufacturer Porsche is suspending production in Leipzig because of the war in Ukraine. In the largest European BMW plant in Dingolfing, vehicle production will be completely canceled in the coming week due to a lack of parts from the Ukraine. Ukraine is an important country of origin of wire harnesses.

Investors reacted with disappointment to business figures from SMA Solar. The shares of the solar technology group collapsed by 17.9 percent after a drop in earnings in 2021.

On Wall Street it closed Dow Jones 1.8 percent up at 33,891 points. Among the individual values, Hewlett Packard Enterprise benefited from the strong figures for the first quarter. The stock rose more than 10 percent.

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