US government bonds at a long-term high - financial experts warn of a possible bottoming out of the German leading index Dax

US government bonds at a long-term high - financial experts warn of a possible bottoming out of the German leading index Dax

In early business, the German leading index DAX fell by 0.51 percent to 15,492.16 points. This broke the 200-day moving average line, which is an important indicator of the longer-term trend. Experts interpret this as an indicator of a possible bottom formation if the market can recover again. However, there are currently no buyers to be seen as many investors are cautious due to the US Federal Reserve's key interest rate signals. U.S. Treasury yields have risen, causing investors to reduce risky stock portfolios. The yield on ten-year US government bonds reached around 4.5 percent, the highest level since 2007. This has an impact on the market, especially on the M-Dax and the Euro Stoxx 50, which are also recording losses.

A positive individual value development can be observed for the Allianz share, as the US bank JPMorgan has increased its recommendation to “Overweight” and raised the price target to 270 euros. JPMorgan remains positive about the insurance industry and emphasizes that Allianz is achieving its goals regardless of the economic situation. Allianz's attractive return on capital is also cited as an argument for an investment.

MTU shares also rose to the top of the DAX with an increase of 2.3 percent. The US bank Citigroup issued a buy recommendation after the recent price collapse, although the price target was lowered to 217 euros. The analysts are of the opinion that the losses due to the engine problems are exaggerated and therefore still see potential for the stock.

In the M-Dax, Jungheinrich shares rose by 2.4 percent after the British investment bank Barclays rated the stock “overweight” with a price target of 36 euros. The analysts base their recommendation on the forklift manufacturer's attractive valuation and the potential of the growing warehouse automation business.

The share certificate from Thyssenkrupp Nucera received another positive rating. The major French bank Societe Generale classifies the company as a leading electrolysis specialist and rates the share as “Buy” with a price target of 29 euros. The predictability of the growth path is considered to be better than that of the competition.

Source: According to a report from www.faz.net