DAX changing sign: A look at market sentiment, interest rate concerns and the balance sheets of the DAX reporting companies

DAX changing sign: A look at market sentiment, interest rate concerns and the balance sheets of the DAX reporting companies

According to a report by www.finanzen.net, there was a change of sign on the German stock market on Wednesday. The DAX started with red signs, but was able to move into profit over the course of the day and closed 0.51 percent higher at 15,229.60 points. The experts at Bernecker-Börsenbriefe discuss whether the stock market's strong start to November was "a bear market rally or the start of a broader trend."

Interest rate concerns are getting bigger again
Stock marketers are now doubting whether the US Federal Reserve's cycle of interest rate hikes has already been completed or not. At the same time, the market is pleased about the significantly lower oil prices, which are alleviating inflation concerns.

Flood of numbers on the German stock market
The reporting season on the German stock market was characterized by a large number of company reports. Among other things, eight companies from the DAX reported, with Commerzbank presenting surprisingly successful quarterly results and targeting a surplus of around 2.2 billion euros for 2023. In contrast, the logistics company DHL Group lowered its medium-term forecast.

Negative news dominated the other DAX reporting companies, including E.ON SE, Continental, Bayer and Siemens Healthineers. The securities of Deutsche Pfandbriefbank also attracted negative attention outside the DAX, which significantly increased its risk provisions due to the weak market for commercial real estate.

Impact analysis
The increase in interest rate concerns and the mixed quarterly results of leading companies on the German stock market could lead to increased volatility and uncertainty among investors. Doubts about the Fed's interest rate policy could further destabilize markets and lead to a decline in investment. Negative reports from key companies such as E.ON SE, Bayer and Deutsche Pfandbriefbank could also have a negative impact on the overall market as they could affect the trustworthiness of the entire stock index.