Frankfurt Stock Exchange
Next recovery attempt in the Dax
The Dax is the most important stock index in Germany. Photo: Fredrik von Erichsen/dpa
© dpa-infocom GmbH
On the day of the interest rate decision by the US Federal Reserve (Fed), the Dax made another attempt at recovery. In the first hour of trading in Xetra business, the leading German index gained 0.69 percent to 13,396 points.
On the day of the interest rate decision by the US Federal Reserve (Fed), the Dax made another attempt at recovery. In the first hour of trading in Xetra business, the leading German index gained 0.69 percent to 13,396 points.
The MDax rose by 0.78 percent to 27,555 points. The leading euro zone index, the EuroStoxx, was also up by 0.8 percent.
The question on the market is whether the Fed will hike interest rates by 0.50 percentage points in the evening or by 0.75 points straight away. According to experts, the worse case of a larger interest rate step for equity investors could already be anticipated in view of the market weakness of the past few days. Nevertheless, if the Fed were to take such aggressive action against price pressure, the likelihood of a recession in the largest economy would increase, Postbank said in the morning.
The recently very nervous markets calmed down somewhat on Wednesday with the announcement that the Council of the European Central Bank (ECB) will hold a special meeting in the morning to discuss the current market conditions.
According to circles, the special packaging manufacturer for the pharmaceutical and cosmetics industry Gerresheimer has rejected a takeover bid because the price is too low. Investors reacted euphorically to the news, which, according to a trader, bring new imagination to the papers. The price jumped by almost eleven percent.
Morphosys gives the development of two antibody preparations into new hands. The biotech company concludes a license agreement for the kidney drug felzartamab and the cancer therapy MOR210 with the US company Human Immunology Biosciences. With this, Morphosys intends to focus its resources on the further development of more important cancer drugs. The shares rose in price by almost six percent.
The Berenberg Bank upgraded MTU from “Hold” to “Buy”. Analyst Ross Law wrote that the recovery in global air traffic appears robust, despite some headwinds from corona and the economy. This supports the ambitious production plans of the aircraft industry. Law relies primarily on companies with a stronger focus on narrow-body aircraft and therefore recommends purchasing MTU. The shares gained 1.7 percent.
Lowered forecasts by the Swedish medical technology company Getinge weighed on the shares of Drägerwerk, which fell by more than two and a half percent. Dealers pointed out that both companies, which temporarily benefited from the corona pandemic, are in competition with their medical technology devices.