Stock exchange in Frankfurt: DAX continues to give way

2023-10-23 10:05:31

Stock exchange in Frankfurt Dax continues to fall

The Dax is the most important stock index in Germany. photo

© picture alliance / dpa

The German stock market cannot maintain its claimed opening trend on Monday and continues to collapse. The Dax recently fell by 0.37 percent to 14,743.93 points after falling below the widely respected mark of 15,000 points to a seven-month low the previous week and losing more than two and a half percent. The MDax of medium-sized companies lost 0.63 percent to 23,913.10 points at the start of the week. The Eurozone leading index EuroStoxx 50 fell by around 0.3 percent.

The German stock market cannot maintain its claimed opening trend on Monday and continues to collapse. The Dax recently fell by 0.37 percent to 14,743.93 points after falling below the widely respected mark of 15,000 points to a seven-month low the previous week and losing more than two and a half percent. The MDax of medium-sized companies lost 0.63 percent to 23,913.10 points at the start of the week. The Eurozone leading index EuroStoxx 50 fell by around 0.3 percent.

Investors remain cautious, not least because of fears about a further escalation of the conflict between Israel and the Islamist Palestinian organization Hamas. In addition, the persistently high yields on the US bond market are curbing the desire to buy. The yield on trend-setting ten-year government securities in particular influences valuations Stock market noticeable, as Stephen Innes from asset manager SPI Asset Management explained.

“The time when investors ignored the flood of negative news is over. They now realize that not only will interest rates remain high for a long time, but also that the geopolitical crises cannot be resolved so quickly,” commented analyst Jochen Stanzl from CMC Markets.

Among the individual stocks, Volkswagen shares, at the bottom of the DAX, fell by 3.2 percent to their lowest level in three and a half years. The car company published preliminary figures for the third quarter on Friday after the market closed and reduced its profit target for 2023. The car manufacturer’s operating result and margin were disappointing, wrote Jefferies analyst Philippe Houchois. From the perspective of JPMorgan expert Jose Asumendi, the clouded earnings outlook is not a substantial deterioration.

Dürr shares suffered from analyst downgrades and continued their steep decline from Friday with minus 3.6 percent. Analyst Nicolai Kempf from Deutsche Bank Research downgraded the plant manufacturer’s shares from “Buy” to “Hold” and lowered the price target from 45 to 25 euros. The analysts at the investment bank Oddo BHF also downgraded their investment rating.

Varta’s stocks benefited from renewed speculation about a major order from the iPhone company Apple and rose by 9.4 percent as SDax leaders. The head of the battery manufacturer, Markus Hackstein, spoke in an interview about deliveries to an important major customer “who had previously postponed the call-offs of his orders”. He did not want to say who the customer for mini headphone batteries was, but Apple was previously considered one of Varta’s most important customers with regard to batteries for Airpods.

A more optimistic company outlook gave Atoss shares a fresh boost of 5.5 percent. The software specialist continued to increase sales and profits in the third quarter and is now confident that it will easily exceed its annual outlook, which was only raised in July.

dpa