2023-05-19 17:07:00
On Friday, the German stock index DAX crowned an initially sluggish stock market week with a record high. At just under 16,332 points, the leading index clearly surpassed the old record from November 2021. As the day before, investors were willing to take risks in the hope of an early solution to the US debt dispute.
Shortly before the end of trading on the European stock exchanges, however, the news came that the Republicans had left the negotiations with the Democrats. The DAX thus contained its gains in the last few minutes to 0.69 percent and closed at 16,275.38 points. The MDAX of medium-sized companies lost almost all of its price gain and closed 0.08 percent higher at 27,639.03 points.
Vague prospect of an agreement
With the withdrawal of the Republicans, the talks were blocked, it was said in the evening from the United States. The White House had previously reported “steady progress”. US President Joe Biden was therefore confident that a default by the US government could be avoided, it said.
The vague prospect of an agreement in the USA had fueled prices on the German stock market the day before. The leading German index had closed above the 16,000 point mark for the first time since the beginning of 2022, after the stock market barometer had barely moved for weeks. For the past five trading days, there is an increase of a good two percent in the DAX.
40 percent increase since last September
The stock market barometer has grown by almost 40 percent since the interim low last September at less than 12,000 points. Due to the Russian war of aggression in Ukraine and the turnaround in interest rates, the leading German index had fallen significantly by autumn last year, before a rapid recovery began.
However, experts remain skeptical
Despite the current historical price level, experts remain skeptical and warn of a mixture of persistently high inflation, further rising interest rates and a possible economic slowdown, which tends to weigh on the stock exchanges. The most recent record is therefore “the most unpopular of all time” and built on a “wall of fear,” wrote analyst Daniel Saurenz of Feingold Research. “Because many investors, especially professionals, missed the rally and are desperate to buy afterwards.” However, in view of the enormous economic headwind, that is “absurd”.
Adidas biggest DAX loser
In terms of individual values, Adidas shares were the biggest DAX loser from trading at minus 3.3 percent, the papers were sucked into a lowered annual forecast by the US sports shoe chain Foot Locker. In addition, analyst comments in particular caused movement. Commerzbank shares fell by almost 1.4 percent. Bank of America had downgraded the paper to “underperform” a few days after the most recent quarterly balance sheet. The experts at the US bank no longer see any scope for a further rise in the price.
Among the smaller stocks, 1&1 benefited with a premium of almost four and a half percent from a new buy recommendation from Deutsche Bank. Telefonica Deutschland, on the other hand, lost a good one percent, with Deutsche Bank canceling its buy vote.
Plans for a share buyback gave the papers of the wind and solar park operator Energiekontor an additional boost in the short term. The course recovered quickly, but ultimately remained an increase of 1.2 percent.
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