2023-09-14 20:16:09
Frankfurt/Main.
Prices on the German stock market have turned positive following the interest rate increase by the European Central Bank (ECB). Investors were not surprised that the Eurozone monetary authorities raised the key interest rate by a further 0.25 percentage points. However, the view grew that it could have been the last interest rate move in the eurozone.
The DAX rose by 0.97 percent to 15,805.29 points. The German leading index did not rise quite as strongly as the overall European environment. Because it was slowed down, among other things, by falling car values. The MDax of medium-sized company stocks ultimately climbed by exactly one percent to 27,326.00 points.
According to capital market strategist Ann-Katrin Petersen from asset manager Blackrock, the ECB signaled in its accompanying statements that the tenth interest rate hike was probably the last in an exceptionally sharp tightening cycle. “Today’s ECB meeting underlines that the key interest rate peak is likely to be followed by a plateau in interest rates, but not a rapid slide back into the valley of low interest rates,” said the expert. She assumes that there will still be a long way to go for interest rate cuts next year.
“Abandoning the interest rate hike, a pause, would simply have postponed interest rate hike expectations until the next meeting given the still high pace of inflation,” said Michael Heise, chief economist at HQ Trust. Overall, with the renewed interest rate increase, the ECB leaves no doubt about its determination to combat inflation. Other experts emphasized that this was a higher priority than avoiding a recession.
Real estate values are climbing
Real estate values reacted particularly strongly to the prospect of an interest rate plateau. The shares of Vonovia, for example, rose as the DAX leader by 5.1 percent to close to their high in March. In the industry, an end to the tightening course gives hope for better times on the real estate market, which had suffered badly for months due to high interest rates.
At the other end of the Dax, the car stocks that were still strong the day before went into reverse gear. There have recently been concerns in the sector about increased competition from China. In addition, Barclays analyst Henning Cosman downgraded BMW shares on Thursday, fearing that the Munich-based company’s margins have passed their peak. BMW’s loss of 1.5 percent was dwarfed by Porsche AG’s loss of 2.4 percent.
Wind turbine manufacturers, who had already benefited from the EU’s announced support plans the day before, were also in demand. An analyst recommendation for the Danish company Vestas has now been added as positive industry news. Nordex rose by 5.5 percent in the MDax following a reported order from Spain. Stocks from Siemens Energy, the parent company of Nordex competitor Gamesa, gained 4.2 percent in the Dax.
There were also rising prices in the telecommunications sector, where an extension of mobile phone frequencies signaled the day before had a positive impact. Citigroup subsequently issued buy recommendations for Telefonica Deutschland, 1&1 and United Internet. The latter two stocks benefited particularly strongly, with increases of up to 6.5 percent.
The EuroStoxx rose by 1.33 percent to 4279.75 points and was therefore stronger than the Dax. The French Cac 40 also had a bit of a lead. Driven by mining stocks, the London FTSE 100 even rose by almost two percent. In New York, the Dow Jones Industrial was recently up 0.8 percent.
Euro under pressure
The euro came under pressure after the interest rate decision and was last quoted at 1.0657 US dollars. The European Central Bank set the reference rate at 1.0730 (Wednesday: 1.0733) dollars. The dollar therefore cost 0.9319 euros.
The prices of German federal bonds rose. In bond trading, the current yield fell from 2.70 percent the day before to 2.68 percent. The Rex bond index fell by 0.04 percent to 123.46 points. The Bund future rose by 0.38 percent to 131.12 points. (dpa)
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