2023-05-30 15:18:50
DGerman investors took a cautious view of the agreement reached in the American debt dispute on Tuesday. After all, the German share index Dax was able to break through the 16,000 point mark again after the Pentecost weekend. By Tuesday afternoon, the leading index had increased by 0.4 percent to 16,019 points. The price movement was characterized by caution because the issue of the US debt ceiling is not yet dry.
The vote on the compromise between US President Joe Biden and the leading Republican in the US Congress, Kevin McCarthy, will take place on Wednesday. Some members of parliament are threatening to resist the proposal to suspend the US debt ceiling of $31.4 trillion until 2025. In addition, doubts about the content of the agreement spread among analysts. “The US found a solution that still involves a huge increase in public debt and no real spending cuts,” said James Rosenberg, adviser at broker Ord Minnett in Sydney.
Among the individual stocks, attention was drawn to a possible alliance in Asia between truck manufacturer Daimler Truck and competitor Toyota. The Daimler Truck share price increased by 0.9 percent to 28.77 euros. The titles of the commercial real estate company Aroundtown led the list of winners in the M-Dax with a price increase of 4.7 percent to 0.92 euros. The company felt the effects of declining building values in the first quarter, but was able to confirm its full-year targets.
Euro can recover somewhat
The titles of the wafer manufacturer Siltronic increased by 3.9 percent. The investment house Jefferies had recommended it for purchase. The fundamentals are solid and there are first signs of an end to the cyclical downturn in the semiconductor industry, according to Jefferies expert Constantin Hesse.
The election victory of Turkish President Recep Tayyip Erdogan weighed on the national currency, the lira. One dollar was 20.31 lira, up 1 percent since Friday. The Turkish currency recorded a record low against the euro at 22.35 lira. According to Commerzbank’s foreign exchange expert Ulrich Leuchtmann, further losses in the lira cannot be ruled out after the election decision. “It has been all too obvious that recently the lira exchange rates were not market-made, but artificially supported the Turkish currency,” said Leuchtmann.
Capital controls have been introduced in Turkey, which have supported the domestic currency in recent months. Leuchtmann sees the risk that the Turkish lira will no longer be artificially supported with the same vehemence as before the election. It cannot be ruled out that the devaluation pressure that has built up over the past few months could be discharged.
The euro was also under pressure recently, falling to its lowest level since March at $1.0673 on Tuesday morning. By midday, the common currency had recovered to $1.0730. The weaker economy in Europe has recently weighed on the euro.
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