Dhe German stock market broke off its recent upward trend on Tuesday. Statements by US Federal Reserve President Jerome Powell on further interest rate hikes pushed prices into the red from the afternoon. At the end of the day, the Dax went down 0.60 percent to 15,559.53 points, just a few points above its low for the day. The leading German index had previously exceeded the important mark of 15,700 points and, supported by data from German industry, had at times risen to its highest level in 13 months. The MDax of medium-sized stocks ended the day down 1.08 percent at 28,857.11 points.
After a stable start to trading, the leading index reached its highest level in thirteen months on Tuesday afternoon and briefly exceeded the 15,700 point mark in the morning. Support also came from German industry. This got off to a solid start in the new year and received more orders than in December. Analysts, on the other hand, had expected a decline on average.
But statements by US Federal Reserve President Jerome Powell about further interest rate hikes pushed prices into the red from the afternoon. Powell had told the US Senate Banking Committee that the US Federal Reserve was ready to increase the pace of further hikes and let interest rates rise even more than expected if necessary. He referred to the high inflationary pressure. However, such statements do not come as a complete surprise, as experts see the Fed as continuing to raise interest rates anyway.
Powell’s speech also weighed on the courses in Europe and on Wall Street: The leading eurozone index EuroStoxx 50 lost 0.81 percent to 4278.96 points. The trading centers in Paris and London posted losses, albeit smaller ones. The New York Dow Jones Industrial recently fell by almost 1.1 percent.
The euro came under significant pressure following indications of more decisive action by the Fed. Most recently, the common currency cost 1.0572 US dollars. The European Central Bank had set the reference rate at 1.0665 (Monday: 1.0646) dollars in the afternoon. The dollar had thus cost 0.9377 (0.9393) euros.
On the bond market, the current yield rose from 2.71 percent on the previous day to 2.73 percent. The Rex pension index fell by 0.04 percent to 123.42 points. The Bund future rose by 0.33 percent to 132.09 points.
Zalando at the top of the Dax
In the Dax, Zalando shares took the top spot in the index, with a price increase of 5 percent at times, while Henkel found itself at the end of the index with minus 2.5 percent after the most recent price gains. Fresenius Medical Care shares lost a similar amount. After a slump in profits last year, the online fashion retailer Zalando wants to significantly improve its profitability by 2025, which has been positively received by the market. The consumer goods and adhesives manufacturer Henkel could not inspire. At first glance, there were no major surprises in the figures for the final quarter of 2022, according to DZ Bank. Bernstein analyst Bruno Monteyne, on the other hand, emphasized that the “consumer” division had disappointed again.
The Brenntag papers went up by a good 2 percent. According to circles, the chemicals dealer wants to buy back at least 5 percent of its shares. At the end of the M-Dax, Hellofresh lost a double-digit percentage at times. The shares later lost around 4 percent in price. A dealer and analyst Marcus Diebel from JP Morgan assessed the operating profit outlook of the cooking box supplier negatively.
Schaeffler lost more than 6 percent in the S-Dax. The automotive and industrial supplier, which is still struggling with high costs, disappointed with its operating result and profitability in the fourth quarter. In addition, the outlook was cautious. The index of small German stocks itself gained 0.3 percent.