Equities Frankfurt outlook: German losses expected
FRANKFURT (dpa-AFX) – After the recent recovery on the German stock market, the Dax is threatened with another setback on Wednesday. The X-Dax as an indicator signals a minus of 1.6 percent to 13,085 points about an hour before the start of Xetra. The EuroStoxx 50, the leading index in the euro zone, is expected to start with a similar discount.
On Tuesday, the leading German index rose to 13,443 points, almost making up for Thursday’s heavy losses. The price slump was triggered by the surprising and significant increase in key interest rates in Switzerland, after the US Federal Reserve (Fed) had announced a large interest rate hike the day before. After recovering from the low on Thursday, the Dax is already largely out of breath on Tuesday, so that the plus totals around three and a half percent.
Things are now turning lower again, with US futures flagging, indicating a losing start for Wall Street. Sentiment remains vulnerable amid inflation and economic concerns.
Fed Chair Jerome Powell’s speech to the Senate Banking Committee is likely to attract particular attention that day. It follows the highest interest rate hike in the US since 1994, which, according to Helaba experts, made it clear that the Fed “will take decisive action to combat high inflation”. The situation on the US labor market allows for an aggressive approach, which Powell will therefore probably repeat at the hearing.
Among the individual values, the car stocks BMW, Mercedes and VW could be looked back. A few days before the vote in the EU Council of Ministers, Federal Finance Minister and FDP parliamentary group leader Christian Lindner spoke out against stopping sales of combustion engines from 2035. That could support the car values in this country that day, a dealer expects.
Salzgitter AG is weak on Tradegate. An industry study by the US bank JPMorgan should also weigh on the expected weak overall market. Analyst Luke Nelson has downgraded the steel company’s stock from “neutral” to “underweight” and lowered its target price from EUR 44.00 to EUR 31.60. He referred to significantly lower prices and declining earning power. Inventories in Europe and China are quite high and the economic outlook is poor.
Meanwhile, Hugo Boss is gaining on Tradegate, bucking the trend. Shortly before, the British Fraser Group had announced that it had recently increased its stake in the fashion company again
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