Frankfurt Stock Exchange
Dax defies interest rate and recession fears
The Dax is the most important stock index in Germany. Photo: Fredrik von Erichsen/dpa
© dpa-infocom GmbH
Investors on the German stock market took more risks again on Tuesday despite unchanged negative factors.
Investors on the German stock market took more risks again on Tuesday despite unchanged negative factors.
Around noon, the Dax gained 0.86 percent to 14,450.60 points. The MDax of medium-sized stock exchange groups rose by 0.49 percent to 31,835.42 points. The leading eurozone index, the EuroStoxx 50, rose by around 0.9 percent.
The focus is on fears of recession, fueled by the ongoing war in Ukraine and high oil prices. US Federal Reserve Chairman Jerome Powell put another damper on the situation when he brought up the possibility of faster interest rate hikes in view of the inflation rate that was “much too high”. When asked what could stop the Fed from raising interest rates by 50 basis points at the next meeting on May 4th, Powell replied “Nothing!”.
The prospects of a possibly even quicker turnaround in US interest rates boosted bank stocks in particular on Tuesday. The sector index Stoxx Europe 600 Banks climbed as the best sector by 2.4 percent. Deutsche Bank shares took the top spot in the Dax with a price increase of 4.1 percent. The Commerzbank shares also gained 4.1 percent and were the second-best MDax value.
Only the Nemetschek stocks were even better in the MDax with a price jump of more than 8 percent. The provider, which specializes in construction and design software, is expecting a sales increase of between 12 and 14 percent for the current year. Profitability should be between 32 and 33 percent.
After unexpectedly good figures from competitor Nike, the shares of Adidas and Puma increased noticeably by 2.1 and 2.2 percent respectively. On the other hand, Morphosys shares fell by 9.3 percent and were the clear bottom of the SDax. Since the beginning of 2020, the price losses have already totaled more than 80 percent.