Dax posting gains after recent sell-offs

Frankfurt Stock Exchange
Dax posting gains after recent sell-offs

dax

The Dax is the most important stock index in Germany. Photo: Fredrik von Erichsen/dpa

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On the big day of expiry on the futures exchanges, the Dax recovered somewhat from the recent wave of sales. The leading German index rose by 0.67 percent to 13,126.26 points on Friday.

On the big day of expiry on the futures exchanges, the Dax recovered somewhat from the recent wave of sales. The leading German index rose by 0.67 percent to 13,126.26 points on Friday.

On a weekly basis, this means a minus of 4.62 percent, since the interim high on Whit Monday, the losses for the leading German index have even totaled almost 11 percent. Experts therefore see little more than an attempt to stabilize the downward trend for the time being. The MDax of medium-sized stocks rose by 1.22 percent to 27,061.74 points on Friday.

Futures contracts on stocks and indices on the futures exchanges expired on Friday. Stockbrokers speak of the “big expiry” or “four-fold expiry” when options and futures on indices and individual stocks expire on the same day. There are four major expiry dates each year. On these days, share prices and indices can fluctuate noticeably without any significant company or economic news.

High inflation and rising interest rates remain the dominant themes in the market and are fueling fears of a recession among investors. The surprisingly significant increase in interest rates in Switzerland had weighed heavily on prices the day before and caused the recent slide in prices.

The throttling of gas supplies from Russia is also playing an increasingly important role. The scenario of a supply stop for Russian gas now seems more and more likely, wrote analyst Jochen Stanzl from the trading house CMC Markets. It could trigger an immediate recession in Germany.

A circle report about a possible takeover of the Dutch ABN Amro by the French BNP Paribas drove bank stocks across Europe. In the MDax, Commerzbank shares rose by a good three percent.

Delivery Hero’s shares gained a good twelve percent on their last day in the Dax at the top of the index. From Monday they will be listed in the MDax. The share certificates of the food delivery service could hardly be stopped in the first Corona year as one of the winners of the pandemic and in the summer of 2020 they rose to the first German stock exchange league as a replacement for the payment processor Wirecard. After stronger price fluctuations in 2021, things went downhill steeply in 2022. Since the beginning of the year, they have lost around two-thirds.

Real estate values, which were particularly weak recently as a result of the turnaround in interest rates, increased. Vonovia gained a good three percent. Grand City Properties, Deutsche Wohnen and Aroundtown soared by as much as 9 percent, with Grand City boosted by a study by Societe Generale.

The Eurozone leading index EuroStoxx 50 increased by 0.31 percent to 3438.46 points. Paris’ Cac 40 and London’s FTSE 100 ended slightly lower. In New York, the leading barometer Dow Jones Industrial fell by 0.4 percent at the close of the stock market in Europe.

The euro last cost 1.0472 US dollars. The European Central Bank had set the reference rate at 1.0486 (Thursday: 1.0400) dollars. The dollar thus cost 0.9537 (0.9615) euros. On the bond market, the current yield fell from 1.72 percent the previous day to 1.57 percent. The Rex pension index rose by 0.74 percent to 131.43 points. The Bund future gained 0.51 percent to 144.39 points.

dpa

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