Dax gains 1.2 percent at the end of a strong stock market week | free press

by time news
Frankfurt/Main.

After taking a breather the day before, the German stock market has resumed its lively start to the year. A robust job report from the USA and weak economic data from the US service sector proved to be the driving force on Friday, which dampened interest rate hike expectations with regard to the Fed. The mood in the important US service sector had unexpectedly deteriorated significantly in December.

The leading index Dax closed 1.20 percent higher at 14,610.02 points. The first stock market week of the year brought a plus of 4.93 percent. The MDax for medium-sized companies rose by 1.12 percent to 26,970.10 points on Friday.

“Despite all interest rate increases, the US labor market is doing well,” wrote chief economist Thomas Gitzel of VP Bank in Liechtenstein. The labor market remains very robust. He pointed to a stronger-than-expected rise in employment in December, which pushed the unemployment rate to its lowest level in almost three years. At the same time, wages rose less than expected. This brought relief with a view to the further development of inflation.

Fresenius on the winning side

In the Dax, Fresenius shares gained 1.6 percent after a positive analyst comment. Analyst Graham Doyle from the major Swiss bank UBS highlighted the chances of the infusion subsidiary Kabi and its strategic possibilities as positive.

The shares of Deutsche Post hardly moved from the spot and thus lagged behind the market. The logistics group is currently looking at the collective bargaining demands of the Verdi union for postmen and parcel deliverers. Verdi is demanding 15 percent more for around 160,000 domestic employees. The Post board of directors considers such strong increases in income to be “not justifiable”.

Rheinmetall shares rose by 3.6 percent in the MDax. They benefited from deliveries of Marder armored personnel carriers to Ukraine. In addition, Rheinmetall is seen as the successor to Linde in the Dax as soon as the industrial gases manufacturer and plant manufacturer in this country goes public. The preliminary annual figures presented during the course of the day hardly played a role. The company had achieved record operating results.

Delivery Hero brings up the rear

With minus 2.9 percent, the shares of Delivery Hero were the clear bottom of the index. According to a statement, CFO Emmanuel Thomassin had sold shares in the online food supplier worth around 1.4 million euros.

The Eurozone leading index EuroStoxx 50 rose by 1.47 percent to 4017.83 points. France’s Cac 40 was up just as significantly, while London’s FTSE 100 was up just 0.9 percent. The leading US index, the Dow Jones Industrial, rose by almost 2 percent at the close of trading in Europe.

The euro benefited greatly from the weak data from the US services sector and was last traded at 1.0620 US dollars. The European Central Bank had previously set the reference rate at 1.0500 (Thursday: 1.0601) dollars. The dollar thus cost 0.9524 (0.9433) euros.

On the bond market, the current yield rose from 2.30 percent on the previous day to 2.33 percent. The Rex pension index fell by 0.12 percent to 125.44 points. The Bund future gained 0.70 percent to 137.16 points. (dpa)

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