Stock exchange in Frankfurt: Dax continues to grow

Strong US stock exchanges helped the leading German index to gain for the fifth day in a row on Friday.

Stock exchange in Frankfurt: Dax continues to grow

Strong US stock exchanges helped the leading German index to gain for the fifth day in a row on Friday. After the price rally of the past few days, the Dax headed for a loss for a long time before a surprisingly good mood on Wall Street provided the necessary tailwind. Investors were not deterred by the unexpectedly high level of inflation in Germany, which makes continued restrictive monetary policy likely.

Thanks to the late tailwind, the Dax closed 0.24 percent higher at 13,243.33 points. The weekly increase is around 4 percent. The MDax for medium-sized stocks, on the other hand, slipped 1.21 percent to 23,51.17 points on Friday. The leading index in the euro zone, the EuroStoxx 50, gained 0.24 percent. A weak trading day was initially expected on Wall Street before the shares turned significantly positive after the opening.

The downward pressure on the stock market is currently being cushioned by strong corporate balance sheets and the prospect of slower monetary tightening, wrote Jürgen Molnar, capital market strategist at Robomarkets. However, given the difficult news situation, the upside potential is limited.

The resilience of the market to poor quarterly figures is also striking, wrote Jochen Stanzl from CMC Markets. Even the severe slump in Amazon shares as a result of the quarterly figures does not drive investors to flee. And the expectation that the interest rate hikes will soon peak is euphoric.

In the US, Amazon presented a meager quarterly report after hours on Thursday. The company joined tech heavyweights like Alphabet, Microsoft, and Meta, which had previously disappointed with their numbers and outlook.

Dax companies also came into focus on Friday. Airbus and Volkswagen presented figures. Despite a very strong run in the aircraft manufacturer's shares since the beginning of October, the shares have continued to rise by 3.6 percent. Dealers highlighted the planemaker's strong free cash flow and the consequent raised full-year target for this metric. Investors pay particular attention to this figure because it is important for the dividend.

With an increase of 3.4 percent, the T-Share was among the best Dax values. It benefited from the fact that T-Mobile US had once again raised its growth forecasts the previous evening after strong quarterly figures. VW shares, on the other hand, fell by 1.9 percent after a mixed quarterly report and dragged the papers of Porsche Holding down with them.

Outside the Dax family, the shares of the subsidiary Porsche AG increased by 0.7 percent. RBC analyst Tom Narayan wrote that the sports car maker did not raise its outlook primarily because of management's caution.

Burdened by the figures from US competitor Davita, Fresenius Medical Care (FMC) shares fell by 8.9 percent. Not only that hit the papers of the parent company Fresenius SE, whose papers fell by 3.2 percent. A press report on measures taken by the healthcare group against the influence of the US hedge fund Elliott was also not well received.

The euro was trading at $0.9942 after the market closed. The European Central Bank had previously set the reference rate at $0.9951 (Thursday: $1.0037).

On the bond market, the current yield fell from 2.14 percent on the previous day to 2.06 percent. The Rex pension index fell by 0.23 percent to 127.16 points. The Bund future fell sharply in the late afternoon by 1.01 percent to 139.18 points.

NEXT NEWS