Investors remain defensive ahead of Fed decision | free press


The Dax is heading for the fifth day of losses in a row on Monday morning.

Investors continued to reduce their risk ahead of the Federal Reserve’s interest rate decision on Wednesday. The leading German index lost 0.70 percent to 12,651.52 points after one hour of trading. While the MDax fell quite mildly by 0.34 percent to 23,861.63 points, the leading euro zone index EuroStoxx 50 fell by more than one percent.

The hoped-for stabilization did not materialize again at the beginning of the week. With high US inflation figures as the trigger, the Dax had lost over 2.5 percent in the previous week, after having increased significantly to 13,564 points in the meantime. With growing fears of a recession, all eyes are now on the US Federal Reserve’s interest rate decision, according to Credit Suisse.

On the company side, eyes remain on the VW Group for news about the IPO of Porsche AG, which is now announced for September 29th. The Porsche AG preference will be offered in a corridor between 76.50 and 82.50 euros per unit, and the subscription period should begin this Tuesday. According to calculations, up to 75 billion euros are targeted for the market capitalization of the sports car manufacturer, which was at the lower end of previous expert estimates.

The papers of the group holding company Porsche SE reacted with an increase of 2.6 percent. The VW preferences moved in the Dax but at least just 0.1 percent in the plus.

A notably big loser in the Dax index family on Monday was Sixt’s shares, which fell by 8.2 percent in the MDax. For the first time since November 2020, they were trading below the 90 euro mark again. An analyst downgrade to “underperform” by the experts at the French investment bank Exane BNP was held responsible for this.

The shares of 1&1 and the parent company United Internet were also under pressure by up to three percent. They suffered from the sluggish expansion of their own mobile network. According to a 1&1 announcement on Friday evening, delivery problems at the most important expansion partner are slowing down the process. The interim goal of 1000 5G antenna sites by the end of 2022 will not be achieved, it said. However, it was also emphasized that the problems should not have any impact on the planned network start.

The most recent index changes were implemented on Monday. Siemens Energy is back in the Dax. While the titles of the climber were under pressure, investors grabbed the relegated Hellofresh again, as its price increase of 2.3 percent shows. It has its new home in the MDax, together with the telecom supplier Adtran and the automotive suppliers Stabilus and Hella. There were also various changes in the SDax – including the return of Nordex. (dpa)


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