Stock exchange in Frankfurt - Dax sets new record ahead of US inflation
The DAX immediately set another record on Tuesday. In the opening minutes, the leading index pushed up to just under 16,833 points. However, investors remained cautious, as they were eagerly awaiting US consumer prices on Tuesday shortly before the upcoming interest rate decisions.
After the record in the opening minutes, the Dax was last 0.09 percent higher at 16,809.30 points. The year-end rally since the low in October now amounts to around 15 percent. In 2023, the Dax has even gained almost 21 percent so far. The MDax rose by 0.60 percent to 26,782.33 points on Tuesday. The eurozone index EuroStoxx gained 0.2 percent.
US consumer prices could have a signal effect on the Fed's monetary policy. Interest is focused on the question of whether the recent slowdown in inflation continued in November.
On the corporate side, attention was focused on Carl Zeiss Meditec following the publication of its financial results. Although the results were not convincing, the outlook was better than recently feared, according to traders. The shares therefore continued their recovery with renewed momentum, rising by eight percent. They reached their highest level for four months.
Hannover Re also issued statements on its outlook at an investor day in the morning, which were well received with a rise of 1.6 percent. The reinsurer expects a Group profit of at least 2.1 billion euros for 2024.
In contrast, SAP shares, which recently hit record highs, had a difficult time with investors in pre-market trading. Despite poor guidance from US competitor Oracle, which disappointed with its second financial quarter, the software company's shares fell only moderately by half a percent. The market said that Oracle had disappointed in an area in which SAP is hardly or not at all active.
The technology sector, to which SAP belongs, performed better on Tuesday with a tailwind from the US Nasdaq stock exchange. This was particularly evident in the shares of Aixtron, the second best MDax stock, which rose by six percent. They reached their highest level for 22 years. The investment bank Oddo BHF raised its price target to 50 euros on Tuesday, which promises almost 29 percent upside potential at the already increased level.
Read also:
- Why there is still no EU funding for green Saar steel
- 3 billion Saar Fund is unconstitutional
- Politicians at a loss after shock news
- Court of Auditors criticizes the state government's debt plan
- Central banks around the world closely monitor the movements of the DAX in Frankfurt, as its performance often indicates the health of Germany's finances.
- Investors in Frankfurt on the Main are keeping a close eye on inflation figures, as they have a direct impact on interest rates set by central banks.
- The record-breaking performance of the DAX in the initial minute was largely driven by optimism about Germany's leading index and its ability to weather economic challenges.
- In Frankfurt, the MDAX also reached a record level, with technology companies like Aixtron leading the charge, thanks in part to a strong performance from the US Nasdaq.
- Within the finances sector, SAP shares faced some resistance from investors, despite recent record highs, as questions arose about its growth strategy and competition from US firms.
- Some analysts in Frankfurt believe that the Fed's monetary policy decisions may be influenced by the trend in US consumer prices, which could in turn impact the DAX and other regional stock exchanges.
- Despite some volatility in Frankfurt, analysts remain bullish on the overall prospects of Germany's financial markets, given the country's strong economic fundamentals and its role as a leader in innovation and technology.
Source: www.stern.de
