The Dax ended another week with a positive result. On Friday, the leading German index crossed the finish line 1.16 percent higher at 14,431.86 points. On a weekly basis, it has achieved the seventh weekly plus in a row with almost 1.5 percent. However, this time it was smaller than in previous weeks. This shows that the air is gradually thinning at the highest level since early June. The price barometer has gained more than a fifth since the end of September.
After three weak trading days, the MDax increased by 0.93 percent to 25,746.02 points on Friday. Unlike the Dax, the index of medium-sized stocks was not able to draw a positive weekly conclusion. There were also clear gains on the European stage on Friday: the EuroStoxx rose by 1.2 percent. In New York, the Dow Jones Industrial was recently up half a percent in positive territory.
Some stockbrokers consider the market to be overheated. However, Jürgen Molnar from Robomarkets emphasized that the Dax “cannot be broken these days”. A real correction is still a long way off, only on Wednesday there was a clear damper. For Michael Hewson from broker CMC Markets, the current events seem like a consolidation phase.
“After various Fed officials adopted a cautious tone this week regarding possible easing of interest rate reins, hopes that the Fed could step less on the infamous interest rate accelerator in the future were dampened,” said market observer Timo Emden Argument for the decreasing momentum.
On the company side, quarterly reports were no longer the focus at the end of the week as the reporting season came to an end. Investors primarily focused on analyst studies.
In the Dax, SAP investors were caught off guard with a discount of 2.3 percent. Here, a vote by the experts at the analysis company Jefferies, which was lowered by two notches, weighed on it. Analyst Charles Brennan sees the medium-term goals at risk due to the strict cost controls with which the management of the software group is reacting to the weaker economy. SAP shares were also among the most expensive in the sector.
On the other hand, the shares of the energy company Eon showed a gain of 2.6 percent after a buy recommendation from Societe Generale. Utilities remained broadly in demand on Friday after clarity was finally given the day before regarding a UK excess profits tax. RWE climbed 1.5 percent to its highest level in two months.
At MTU, the business outlook, which had been enthusiastically received the day before, provided further impetus. Several analyst firms have now increased their price targets. Shares of the engine maker climbed to their highest level in three months, gaining 3.2 percent.
In the MDax, Knorr- Bremse was one of the biggest winners with 2.7 percent after the experts from Oddo BHF had issued a buy recommendation. The picture at Fuchs Petrolub was completely different: The highest level since the beginning of March was followed by a setback of four percent at the end of the week.
A laggard in the reporting season was the insulating material and paint manufacturer Sto, which is listed in the SDax, with a decline in profits in the first nine months. After initial losses, the shares increased by 2.2 percent at the close of trading. The company was able to increase sales.
The euro was last paid at just under $1.0343. The European Central Bank (ECB) had set the reference rate at 1.0366 (Thursday: 1.0319) dollars. The dollar thus cost 0.9647 euros.
German government bond prices fell. The Rex pension index fell by 0.82 percent to 127.22 points. In contrast, the current yield rose to 2.06 percent from 1.97 percent the previous day. The Bund future rose by 0.05 percent to 140.20 points. (dpa)
