Stock exchange in Frankfurt - Further slight losses for the Dax
After the previous week's record high, investors in the DAX are continuing to take small profits. The leading German index continued its consolidation course on Thursday and was down 0.26% in the afternoon at 16,688.86 points. The stock market barometer had previously fallen to its lowest level in two weeks.
Prices were initially depressed by weak overseas data from the previous day. There, Wall Street had abruptly interrupted its rally in the middle of the week and the Dow Jones leading index had slipped significantly into the red following another record in late trading. Now the US stock markets are heading for gains again at the start of the penultimate trading day before Christmas. However, this has only helped the local stock market to a limited extent so far.
As a result, the MDax index of medium-sized companies recently remained in the red, down 0.52% at 27,209.56 points. The Eurozone's leading index, the EuroStoxx 50, lost 0.34 percent to 4518.27 points.
Unlike on Wall Street, investors in Germany have been cashing in almost every day since the Dax record in mid-December at 17,003 points. However, there has been no major correction so far. Investors can therefore still look forward to a rise of around a fifth in the leading German index in 2023. A large part of these gains is due to the rally since the interim low in mid-October. This was driven by hopes of interest rate cuts in the coming year, which were given fresh impetus by the latest signals from the US Federal Reserve.
Prices in the heavily credit-financed real estate sector in particular had benefited in recent weeks from hopes of lower interest rates. The sector was now one of the biggest losers across Europe. In Germany, the share price of commercial real estate specialist Aroundtown fell by around three percent. LEG, TAG Immobilien and Germany's largest landlord Vonovia lost up to 1.3 percent.
Car manufacturers fared similarly, with the recent price rally in the sector also taking its toll. At the bottom of the Dax were shares in Porsche Holding, which fell by 2.4 percent. Volkswagen lost 1.8 percent, with a recall in the USA weighing on the Wolfsburg-based company. Mercedes-Benz and BMW fell by up to 1.3 percent.
The euro rose and was last traded at 1.0992 US dollars. The European Central Bank (ECB) had set the reference rate at 1.0944 dollars the previous day. On the bond market, the current yield fell from 2.02 percent the previous day to 2.00 percent. The bond index Rex rose by 0.29 percent to 128.74 points. The Bund future recently stood roughly at 138.13 points.
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- Despite the record high of Wall Street's Dow Jones leading index, the US stock markets are expected to see gains before Christmas, but this has only had a limited impact on the local stock market in Frankfurt, such as the DAX and MDAX.
- Contrary to Wall Street, where investors have been buying since the record high of the Dow Jones index in mid-December, investors in Germany have been taking profits almost every day, with the DAX still forecasting a rise of around a fifth in 2023.
- The drop in prices in the heavily credit-financed real estate sector in Germany was one of the biggest losers across Europe, with shares in Aroundtown falling by around three percent, as well as LEG, TAG Immobilien, and Germany's largest landlord Vonovia.
- Frankfurt, known for its Frankfurt on the Main Stock Exchange and the Frankfurt Stock Exchange, witnessed further slight losses for the DAX, with Christmas approaching, as investors continue to take small profits, causing the German index to head below its two-week low.
- As global markets, including Wall Street's Dow Jones index, saw unprecedented record highs, Germany's Dax and MDAX indices followed the trend but showed signs of consolidation, with the leading German index down 0.26%.
Source: www.stern.de
