Stock exchange in Frankfurt: Dax continues to crumble from a high level

At its high price level, the Dax lacks the strength for further profits.

Stock exchange in Frankfurt: Dax continues to crumble from a high level

At its high price level, the Dax lacks the strength for further profits. On Wednesday, the leading German index also faced headwinds from overseas stock exchanges. Most recently, there was a minus of 0.27 percent to 14,304.19 points. The Dax is thus heading for the third day of losses in a row after reaching its highest level since June on Friday at 14,584 points.

The fact that local industrial production fell less than expected in October compared to the previous month and rose more strongly in September than initially reported did not help the Dax. The MDax of medium-sized German stocks fell by 0.85 percent to 25,410.93 points on Wednesday morning. The Eurozone leading index EuroStoxx 50 fell by 0.25 percent to 3929.51 points.

The US stock exchanges went down again on Tuesday due to concerns that interest rates would continue to spiral. China and Hong Kong also fell as further easing of the zero-Covid policy was eclipsed by weak Chinese external trade data. Germany is also clearly affected by this downturn, emphasized capital market strategist Jürgen Molnar from broker Robomarkets, referring to the significantly reduced trading volume in both countries in November.

Airbus shares lost 2.7 percent as the Dax bottom. According to one broker, it was more or less expected that the aircraft manufacturer would not be able to deliver as many new machines as planned this year and will therefore fall short of the delivery target that was lowered in the summer. However, he rated the news that Airbus was reviewing the pace of production expansion for the highly sought-after medium-haul jets of the A320neo family as a price burden.

Negative news from the US fertilizer manufacturer Mosaic caused the shares of the German competitor K S to fall by more than four percent - putting them on top of the list of losers in the MDax. Mosaic reduced production at a Canadian mine due to lack of demand.

In contrast, the shares of the asset manager DWS rose by more than five percent, which meant first place in the SDax small-cap index. A stockbroker praised positive headlines for the capital market day. He sees the prospect of an extraordinary dividend of up to one billion euros in 2024 as a real surprise. This should mean that there are no longer any major acquisition ambitions for the time being. The special distribution should also benefit the parent company Deutsche Bank. However, their shares lost 0.4 percent in the weak industry environment.

Directly behind DWS, the Morphosys shares rose by almost three and a half percent thanks to positive company news. Licensing potential cancer drugs flushes millions into the coffers of the biotechnology company groaning under high costs. The Swiss pharmaceutical company Novartis will receive worldwide exclusive rights for preclinical inhibitors of a new cancer target molecule for an upfront payment of 23 million US dollars, as the listed company announced. In addition, there could be milestone payments and royalties in the mid-single-digit to low double-digit range on net sales.

NEXT NEWS