Equities Frankfurt Outlook: Moderate countermovement after price slide | news
FRANKFURT (dpa-AFX) – The Dax (DAX 40) can probably avert the slide below the 13,000 point mark on Friday after the slump the day before. After the sell-off, it appears to be stabilizing on the day of the big futures market downturn. The X-Dax as an indicator for the leading German index signals an increase of 0.92 percent to 13,159 points one hour before the start of Xetra. The EuroStoxx 50 (EURO STOXX 50) as the leading index of euro zone is expected to be 0.8 percent higher.
High inflation and rising interest rates remain the dominant issues and are fueling fears of a recession among investors. The surprisingly clear rate hike in Switzerland had weighed heavily on prices the day before. The cutbacks in gas supplies from Russia are also playing an increasingly important role. “Concerns about gas rationing in autumn and winter and thus the likelihood of a recession are increasing,” said Dekabank.
View of the extent of the recent sale – in an extremely nervous market environment, the Dax lost more than eleven percent in less than two weeks – but experts see nothing more than a countermovement. Technically, the Dax is still on the downward trend and renewed losses are possible, wrote the experts at Helaba. A fall back to the low for the year at 12,438 points cannot be ruled out. The Dax had reached this at the beginning of March.
Larger fluctuations could bring the expiry of contracts on the futures exchanges on Friday. Further economic data is expected during the course of the day, which will provide indications of the consequences of the extremely high inflation and rising interest rates on the economy. This is also crucial for the central banks’ further leeway in their tightening of monetary policy.
Goldman Sachs upgrades Eon (EON SE) to buy from neutral. The financial risks associated with Russian gas supplies are difficult to calculate for Uniper’s largest customer, wrote analyst Alberto Gandolfi. A delivery stop and a government energy price brake are likely to be priced into the recently weak shares, but they are already priced in. Before the market, the titles on Tradegate advanced by 1.8 percent to the Xetra close./ajx/jha/