Stock exchange in Frankfurt: Dax falls into the red

On Friday, investors on the German stock market reacted with disappointment to the monthly US labor market data, which is important for US monetary policy.

Stock exchange in Frankfurt: Dax falls into the red

On Friday, investors on the German stock market reacted with disappointment to the monthly US labor market data, which is important for US monetary policy. These were stronger than expected, which once again gave rise to fears about future US monetary policy. The previously positive Dax fell into the red, but was able to recover quite quickly and was 0.07 percent lower at 14,479.69 points.

After a brief setback, the MDax for medium-sized companies returned to profitability and most recently increased by 0.53 percent to 26,092.10 points. The leading eurozone index, the EuroStoxx 50, lost almost half a percent.

This is likely to be the end of the good weather period in the Dax after eight weeks of profits. For the first time since the end of September, the leading index is heading for a week of losses, but the minus of around 30 points is currently very manageable.

US Federal Reserve Chairman Jerome Powell had recently underpinned the signals for a more moderate course of interest rate hikes, which had driven the Dax a little this week. But the strong jobs report gives the Fed less reason to rein in policy. After a series of interest rate hikes of 0.75 percentage points each, the market currently considers an increase of 0.5 points in December as a given. So the big question is what to do next.

On the corporate side, real estate stocks, which are considered interest rate sensitive, were in high demand on Friday afternoon, in line with the trend in Europe, but contained their gains. The heavily leveraged industry would benefit from a more moderate level of interest rate hikes.

Vonovia was at the top of the Dax with an increase of almost 2.4 percent. Industry members such as Aroundtown, TAG Immobilien LEG and Deutsche Wohnen climbed by up to four percent. Shares in the real estate investment provider Patrizia rose by two and a half percent, at times climbing above the ten euro mark to a high since the beginning of October.

In the MDax, the shares of the forklift manufacturer Kion continued their recovery and rose by almost five percent. According to a positive JPMorgan study, Lufthansa climbed by one and a half percent.

The euro slipped after the jobs data, trading at $1.0449 in the afternoon session. The ECB last set the reference rate at $1.0454 on Thursday. On the bond market, the return fell from 1.82 percent the previous day to 1.75 percent. The Rex pension index rose by 0.69 percent to 129.19 points. The Bund future lost 0.22 percent to 142.45 points.

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