Analysis: DAX weakness after ECB curbs and individual values ​​in focus

Analysis: DAX weakness after ECB curbs and individual values ​​in focus

According to a report by www.westfalen-blatt.de, the Dax recorded an increase of over 16 percent to its record high of just over 17,000 points. This rally was driven by expectations of interest rate cuts soon. However, this expectation was somewhat dampened by the European Central Bank (ECB), which led to a loss of steam on the stock market. However, shares on Deutsche Börse were able to gain 1.7 percent due to a buy recommendation from UBS. Analyst Michael Werner predicts an industry rotation from bank stocks to stocks from stock exchange operators for 2024. Siemens Energy, on the other hand, lost 3.3 percent and is also in the weakest place in the DAX for the year.

Carl Zeiss Meditec, on the other hand, leads the MDax with a gain of 2.8 percent as the company plans to take over the Dutch Ophthalmic Research Center (Dorc) and expand its portfolio in the field of ophthalmology. The MDax, however, was led by Delivery Hero with a loss of seven percent, putting the company in last place in the index. The SDax small cap index was led by Energiekontor after the company raised its profit outlook following the sale of a wind farm project in Scotland. Ceconomy, on the other hand, expects further operational improvements in the new financial year, but lost 9.2 percent in the SDax.

The EuroStoxx lost 0.62 percent, while the leading stock exchange in Paris fell and things rose slightly in London. The leading index Dow Jones Industrial continued its record run at a moderate pace, while the Nasdaq stock exchange recorded moderate gains. The euro traded at $1.0920, while the current yield on the bond market fell to 2.06 percent.

This development shows that the stock market is particularly influenced by the ECB's statements. The muted expectation of future interest rate cuts has led to a loss of momentum in the market. However, companies that reported positive news about their business prospects saw gains. It remains to be seen whether expectations of interest rate policy will change again and how this will affect the market.