Stock exchange in Frankfurt - Dax closes in the red
After its gains on the previous day, the DAX lacked the necessary strength for a further clear upward movement on Wednesday. The stock market barometer ended trading down 0.07 percent at 16,733.05 points. The MDax of medium-sized companies recorded a plus of 0.72 percent to 27,353.02 points. Many market participants have already closed their books shortly before the end of the year and trading activity is decreasing as Christmas approaches.
Last week, the DAX jumped to a record of 17,003 points, driven by signals from the US Federal Reserve that it would cut interest rates in 2024. However, the European Central Bank (ECB) was much more defensive with regard to interest rate cuts in 2024, thus slowing down the rally. Some experts currently see little room for further gains. "It seems that the DAX has exhausted its short-term upward potential for the time being," wrote Martin Utschneider from Finanzethos.
On the stock market, positively received information from Orsted on the status of an offshore wind farm not only boosted the shares of the Danish wind power company, but also those of Siemens Energy, which rose 2.9 percent at the top of the Dax. The contracts for the wind farm also include an agreement with the Energy subsidiary Siemens Gamesa for the delivery of certain offshore wind turbines.
The shares of DHL Group lost 1.9 percent at the end of the Dax. Disappointing business figures and a poor outlook from US competitor Fedex weighed on sentiment in the sector.
At United Internet and its subsidiary 1&1, the outlook for the coming year was well received, with both telecommunications providers expecting better business in 2024. United Internet gained 12.3 percent at the top of the MDax. With a plus of 11.6 percent, 1&1 shares took first place in the second-tier index SDax.
ProSiebenSat.1 shares, which were recently relegated to the SDax, slipped to the bottom of the second-line index with a minus of 7.3 percent after a weak outlook. The analysts at Goldman Sachs were bothered by the forecast for the operating result, which was below market expectations.
The shares of biofuel producer Cropenergies stood out with a price jump of 68.9 percent. Südzucker wants to take over its subsidiary completely and then delist it. To this end, the food group announced a takeover bid, which is likely to be EUR 11.50 in cash per share. Cropenergies shares ended trading at exactly this price. Südzucker ended trading 2.8 percent higher.
The leading European index EuroStoxx closed down 0.03 percent at 4533.82 points on Wednesday. The leading stock exchange in Paris gained slightly and the leading index in London rose significantly. Favorable inflation data from the United Kingdom proved to be a price driver there. In New York, the Dow Jones Industrial benchmark index and the technology-heavy Nasdaq 100 were up slightly at the close of European trading.
The euro traded at 1.0965 US dollars after the close. The European Central Bank (ECB) had set the reference rate at 1.0944 (Tuesday: 1.0962) US dollars, meaning that the dollar cost 0.9137 (0.9122) euros.
On the bond market, the current yield fell from 2.06 percent the previous day to 2.02 percent. The bond index Rex rose by 0.26 percent to 128.36 points. The Bund future recently rose by 0.39 percent to 137.86 points.
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- Despite the positive signals from the US central bank about potential interest rate cuts in 2024, the European Central Bank (ECB) has been more cautious, which has slowed down the rally in the DAX.
- Orsted's updates on an offshore wind farm boosted the shares of the Danish wind power company, as well as those of Siemens Energy, which is involved in the delivery of offshore wind turbines for this project.
- Many market participants have already closed their books before the end of the year, leading to decreasing trading activity as Christmas approaches.
- The shares of DHL Group lost value in the Dax due to disappointing business figures and a poor outlook from US competitor Fedex.
- United Internet and its subsidiary 1&1 gained significantly in the MDax, as they expect better business in 2024.
- ProSiebenSat.1 shares, which were recently moved to the SDax, saw a drop in the second-tier index after a weak outlook and concerns about the forecasted operating result.
- The shares of biofuel producer Cropenergies saw a significant price jump due to Südzucker's intention to take over its subsidiary completely and delist it, with the takeover bid set at EUR 11.50 per share.
- German offshore wind farms, such as those operated by Orsted, have the potential to contribute to Germany's transition to renewable energy sources, as the country seeks to reduce its reliance on fossil fuels and meet its climate change targets.
Source: www.stern.de
