Investors in German stocks went back on the defensive on Wednesday after two days of significant gains. Data from individual federal states point to an increase in inflation in Germany, the overall data will be released in the afternoon. Rising inflation would mean that the ECB is likely to hike rates further. Since the markets are currently reacting sensitively to such signals, the Dax lost 0.7 percent to 15,826 points by midday.
Inflation rate of 6 percent expected
The long-awaited significant drop in inflation in Germany probably did not materialize in August. In four of the six countries used for the first calculation of the nationwide rate of inflation, consumer prices rose even more sharply, while in the other two they fell. In Baden-Württemberg, the inflation rate climbed from 6.8 percent in July to 7.0 percent, in Brandenburg from 6.7 to 7.1 percent, in North Rhine-Westphalia from 5.8 to 5.9 percent and in Saxony from 6.7 to 6.8 percent. In Bavaria (5.9 percent) and Hesse (6.0), on the other hand, it fell slightly.
Based on this data, the Federal Statistical Office intends to publish an initial estimate of the nationwide development in the afternoon. Economists expect the inflation rate to fall to 6.0 percent in August, after 6.2 percent in July. The European Central Bank (ECB) wants to push the inflation rate in the currency union closer to the desired two percent mark with a series of interest rate hikes.
RWE share under pressure
In the individual values RWE negative pressure. The shares of the Essen energy group lost 2.3 percent and were the biggest losers in the Dax. RWE has acquired rights to an offshore wind farm in the Gulf of Mexico at a US government auction. The area is considered a particular challenge for wind farm operators because of its hurricanes, soft seabed and low electricity prices. In addition, the wind energy group Orsted shocked investors with a billion-euro impairment on the US portfolio. With a price slump of around 14 percent, Orsted shares weighed on the entire energy sector.
However, Delivery Hero’s price fell significantly by 3.8 percent. The food delivery service halved its loss in the first half, but fell short of market estimates. The operative flow of funds (cash flow) of the delivery service is above expectations, but the gross margin is slightly below, it said.
SDax: Real estate group Aroundtown in high demand after a positive outlook
Aroundtown’s half-year results encouraged investors on Wednesday. After the real estate group became somewhat more optimistic about the operating result (FFO I) for the year as a whole, the shares took the lead in the SDax with a recent increase of 7.2 percent. At the daily high, they knocked at EUR 1.54 on the previous interim high of EUR 1.57, which is almost three weeks old. The recovery of shares from the record low in July, which was recently on shaky ground, received a new boost. The annual minus is still 30 percent. Since the interim high in June 2021, the losses have even added up to around 80 percent. In the middle of the year, the paper had temporarily become a “penny stock”, i.e. a share with a price of less than one euro.
US stock markets clearly in the plus, Tesla and Rivian with price rally
US stock markets recovered for the third day in a row on Tuesday. After a friendly start, the leading index Dow Jones Industrial expanded its gains and closed 0.85 percent higher at 34,852 points. The market-wide S&P 500 rose by 1.45 percent to 4497 points. The Nasdaq 100 even went up 2.15 percent to 15,376 points.
Meanwhile, the shareholders of Nio had to cope with a price drop of 1.2 percent. The Chinese electric car manufacturer disappointed with a surprisingly high loss and lower sales figures. In contrast, the shares of the industry peers Tesla and Rivian by 7.7 and 8.7 percent respectively.
Recovery in China is faltering
The recovery of the Chinese stock exchanges stalled in part on Wednesday. Recently, a few smaller stimulus measures by the government had brightened the mood of investors a little, but so far there has not been a big hit.
The CSI 300, which tracks the share prices of the largest companies on the Shanghai and Shenzhen stock exchanges, fell 0.1 percent in late trade. The Hang Seng index of the Chinese special administrative region of Hong Kong, on the other hand, rose moderately by 0.4 percent. Japan’s Nikkei 225 gained 0.5 percent shortly before the end of trading.
Oil prices continue to rise
Oil prices extended their previous day’s gains on Wednesday morning. In early trading, a barrel (159 litres) of North Sea Brent was priced at US$85.74 for delivery in October. That was 25 cents more than the day before. The price of a barrel of American West Texas Intermediate (WTI) grade rose 34 cents to $81.50.
Oil prices were boosted by inventory data from the USA. The American Petroleum Institute (API) reported a sharp drop in nationwide oil inventories Tuesday night. On Wednesday afternoon, the government will announce its weekly inventory figures. The data often lead to price swings on the crude oil market.
The fact that the Chinese government is increasingly fighting the domestic economic downturn is also providing a boost. New aids are currently being announced almost every day. Along with the USA, China is one of the world’s largest oil consuming countries.
In the United States, expectations that the US Federal Reserve may be heading towards an end to its monetary tightening are fueling optimism.