The dax
increased on Monday morning. Slightly positive impulses from overseas provided a boost. However, before the interest rate decisions in the USA and the euro region are due in the course of the week, no major price swings are expected. In early trading, the Dax rose 0.9 percent to 16,097 points. The MDax for medium-sized companies gained 0.4 percent to 27,256 points. The EuroStoxx 50 went up 0.4 percent to 4308 points.
The 16,000 points remain the mark around which the leading index is likely to move, because market participants need clarity about the further interest rate path of the US Federal Reserve and the European Central Bank ECB. And since the technical picture of the German stock market barometer is “inconsistent” according to the experts at Helaba, they recommend waiting. “The probability of increasing fluctuations is extremely high this week,” warned portfolio manager Thomas Altmann of QC Partners.
In the USA, the best-known stock market barometer, the Dow Jones Industrial, recovered somewhat from the daily low on Friday after the European stock market closed and closed moderately in the black. In Asia, the stock markets also started the new week with gains this morning.
The ECB is likely to raise interest rates again on Thursday
Market participants are now eagerly awaiting the US inflation figures on Tuesday, because they are of great importance for the Fed’s interest rate decision the following day. According to Credit Suisse, the market’s perceived probability of a Fed rate hike in June is less than 30 percent. The Bank of Japan is also expected to stand still on Friday, while the ECB is likely to raise its key interest rate again on Thursday.
On the company side, the shares of Adidas, Rheinmetall and VW were the main focus in the Dax this morning. Upgraded to “Outperform” by the analysis firm Bernstein, the sporting goods manufacturer’s shares at the top of the leading index gained 3.5 percent.
Rheinmetall share rises significantly after CEO interview
Rheinmetall followed with plus 2.4 percent. Rheinmetall CEO Armin Papperger considers a medium-term valuation of 17 billion euros for the armaments group and automotive supplier Rheinmetall to be realistic, as he told the editorial network Germany (“RND”) said in an interview on Saturday. Rheinmetall is currently valued at a good 10.5 billion euros on the stock exchange.
According to the “Handelsblatt”, Volkswagen is planning the largest conversion in decades. In its report, the business newspaper refers to an unnamed top manager. CEO Oliver Blume will present the plan to the supervisory board on Tuesday, it said. “The hope for a major restructuring should have a positive effect,” a trader had suspected before the stock market launch and was right. The shares of the Wolfsburg carmaker gained 1.5 percent and were the third strongest value in the Dax.
At the same time, the shares of CTS Eventim fell by 1.9 percent, making them one of the weakest MDax values. In the course of the year, however, there is still an increase of 17 percent. On Friday evening, TV satirist Jan Böhmermann put the event marketer and ticket dealer through the wringer in his show “ZDF Magazin Royale”.
ProSiebenSat.1, on the other hand, rose by 3.5 percent as one of the MDax favorites. Investment bank Oddo BHF upgraded the media company’s stock to “Outperform”. Analyst Jerome Bodin expects advertising revenues to recover in the second half of the year and believes that potential cost reductions have not yet been incorporated into the market estimates. He also sees significant value potential if there is a merger with Sky Germany.
The private bank Berenberg took a close look at Compugroup’s stock in the SDax and downgraded it to “Hold”. The shares of the software provider, which specializes in medical practices and hospitals, have far outperformed both the TecDax and the closest competitor, the Nexus, with their strong price development, wrote analyst Wolfgang Specht. He continues to rely on the margin recovery, but initially sees little further upside potential.
Bitcoin below $26,000
The digital currency Bitcoin was last listed at 25,856 US dollars. In November 2022, the currency plummeted from over $21,000 to around $16,000 on the back of the collapse of crypto exchange FTX. A year earlier, bitcoin hit a record high of $69,000.
Oil prices start the week off with losses
Oil prices have eased. On Monday morning, a barrel (159 liters) of North Sea Brent for delivery in August cost $73.91. That was 88 cents less than on Friday. The price for a barrel of the US WTI variety for July delivery is 84 cents at $69.33.
On the oil market, the focus is on demand, while production cuts by large producing countries such as Saudi Arabia are being pushed aside. Above all, the gloomy economic prospects in the USA and the weak economic development in China could depress demand. The two countries are the largest energy consumers in the world.