Stock exchange in Frankfurt: Dax stable - monetary policy central topic

Given its strong run since the beginning of the year, the Dax has run out of breath.

Stock exchange in Frankfurt: Dax stable - monetary policy central topic

Given its strong run since the beginning of the year, the Dax has run out of breath. However, it is holding steady on Wednesday morning, supported by continued accommodative monetary policy in Japan. In early trading, the leading German index fell by 0.08 percent to 15,174.68 points. The MDax for medium-sized companies rose by 0.27 percent to 28,716.03 points. The EuroStoxx 50, the leading index in the euro zone, recently lost 0.05 percent to 4172.34 points.

The day before, a report by the Bloomberg news agency had provided a boost. Accordingly, the ranks of the European Central Bank (ECB) are considering slowing down the pace of interest rate hikes soon. This is in contrast to recent statements by many central bankers that the ECB will have to raise interest rates significantly for quite some time. France's central bank chief Francois Villeroy de Gallhau rejected the speculation on Wednesday.

In view of the stock market rally, which has given the Dax a plus of nine percent since the beginning of the year, the reporting season is now all the more important, said portfolio manager Thomas Altmann from QC Partners. "Because the prices, which have already risen significantly, now have to be justified retrospectively with increases in profits. If the companies deliver on the profit side, the price gains receive their legitimacy. Otherwise, adversity in the form of falling prices could soon threaten."

The courses of Continental and BASF underpinned the statements of the stock exchange expert: The tire manufacturer and automotive supplier Conti disappointed with the figures presented the previous evening. Although sales increased significantly in 2022, the margins came under pressure due to high costs. Last but not least, analysts also criticized the cash inflow, which investors are watching particularly closely because of the dividend. The shares lost 4.6 percent at the end of the Dax.

BASF gave way by 0.7 percent. The withdrawal of the subsidiary Wintershall Dea from Russia caused the chemical company to lose billions in 2022. Now investors fear for the dividend, said a trader.

Lufthansa reacted positively to the figures for United Airlines in the MDax, because the US airline assumes that its profit in the first quarter will be more than twice as high as analysts are currently expecting.

At the bottom of the SDax were the shares of PVA Tepla with minus 4.6 percent. The previous CEO Manfred Bender will leave the technology company on June 30 for personal reasons. CFO Jalin Ketter is to become board spokesman from July.

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