Financial expert analyzes: German stock market defies US turbulence and shows signs of recovery

Financial expert analyzes: German stock market defies US turbulence and shows signs of recovery

According to a report by www.deraktionaer.de,

The German stock market largely shook off daily losses on Friday as U.S. bourses opened, despite an unexpected downturn in sentiment in the U.S. services sector. The DAX ultimately lost 0.14 percent to 16,594 points, recording a weekly loss of almost one percent.

Siemens shares were among the biggest losers in the DAX, losing 1.2 percent after Bank of America removed its buy recommendation. The shares of the online fashion retailer Zalando weakened even more and, with a loss of 1.6 percent to 19.06 euros, approached their record low of 17 euros.

Commerzbank shares, on the other hand, remained in demand and were once again the best value in the leading index with an increase of 2.4 percent. Since the end of the year, their profit has now been 9 percent.

According to an optimistic study by Bank of America, the securities of the plant manufacturer Dürr in the SDAX small cap index gained 4.3 percent. Analyst Elliott Robinson upgraded the shares to “Buy” because, in his opinion, no business recovery is currently priced into the share price.

From a financial perspective, the unexpected deterioration in sentiment in the US services sector and Bank of America's canceled buy recommendation for Siemens could lead to short-term pressure on trading in the affected shares. In the long term, however, Commerzbank's business prospects can continue to improve and Dürr's shares could benefit from a business recovery. It remains to be seen what impact the inflation data from the euro area and the January data for the European Central Bank will have.