Stock exchange in Frankfurt - Dax runs out of steam close to the record - back in the red
The DAX gave back its opening gains by midday on Wednesday. At the end of the day, the leading German index was down 0.15 percent at 16,720 points. It thus remained within sight of the record high reached last week.
Meanwhile, trading activity on the market is becoming increasingly sluggish as Christmas approaches. The MDax also lost 0.39% to 27,050.62 points on Wednesday. The Eurozone's leading index, the EuroStoxx 50, fell by 0.18 percent to 4527.17 points.
Last week, the Dax had shot up to a record of 17,003 points, driven by interest rate cut signals from the US Federal Reserve for 2024. However, the European Central Bank remained much more defensive and thus slowed the rally.
Some experts 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. For Jürgen Molnar from the broker Robomarkets, the optimism and "greed" of investors after the record chase has not yet reached its limit, but he points out that there have already been significant price corrections in such market constellations.
Observers assume that the market's high expectations of interest rate cuts in the coming year will have to be measured against reality. Some Fed members have recently tried to dampen optimism again, but their statements have fizzled out. The impressive winning streak of the Dow Jones Industrial on Wall Street is proof of this.
In the Dax, DHL Group shares were in last place with a drop of 1.3 percent. Disappointing business figures and a poor outlook from US competitor Fedex depressed sentiment in the sector. Deutsche Bank shares were the frontrunners. They rose by 1.7 percent, continuing their recent upward trend.
In the middle of the week, shares in biofuel producer Cropenergies stood out. Südzucker wants to take over its subsidiary completely and then delist it from the stock exchange. To this end, the food group announced a takeover bid, which is likely to be EUR 11.50 in cash per share. Cropenergies shares recently approached this with a price increase of more than two thirds to EUR 11.46.
United Internet caught the eye at the top of the MDax with a price gain of 7.8 percent. The Internet group expects a further increase in sales and profits for the coming year. The share price of the subsidiary 1&1 rose by more than six percent. The telecommunications provider expects to return to growth in 2024 after a probable decline in profits in the current year.
Aurubis shares lost almost one percent after the presentation of business figures. One trader assessed the outlook for the new 2023/24 financial year as cautious. Uncertainty about the future of the copper group's Executive Board could stand in the way of a more significant share price recovery in the short term, explained analyst Christian Obst from Baader Bank. Following a number of problems, the Supervisory Board intends to make a decision on the composition of the Executive Board at the beginning of the new year.
At ProSiebenSat.1, meanwhile, the media group's business outlook for 2024 was not well received, with the shares bringing up the rear in the second-line index SDax, losing a good six percent. Analysts at Goldman Sachs took issue with the forecast for the operating result, which was below market expectations.
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- The Frankfurt Stock Exchange, located in Frankfurt on the Main, is home to several major indices, including the DAX, MDAX, and SDAX.
- On Wednesday, the Euro Stoxx 50, which includes European blue-chip companies like those listed in Frankfurt, fell slightly.
- The US Federal Reserve's potential interest rate cuts in 2024 contributed to the DAX reaching a record high in Frankfurt last week, but the European Central Bank's more defensive stance has since slowed the rally.
- The US Central Bank is not located in Frankfurt, but its interest rate decisions can have a significant impact on the German and European stock markets, including the Frankfurt Stock Exchange.
- The Eurostoxx 50 is traded on various European stock exchanges, including the Frankfurt Stock Exchange, and not just in Frankfurt itself.
- Some investors may choose to buy shares of German companies listed on the Frankfurt Stock Exchange, such as DHL Group and Deutsche Bank, as part of their diversified investment portfolios.
Source: www.stern.de
