Frankfurt Stock Exchange
Dax grows – investors take it again
Frankfurt/Main. Investors in the German stock market are back on the floor on Wednesday. On a day with figures from many companies that tended to bring positive news, the Dax more than made up for the previous day’s losses.
He increased his profits by rising 1.00 percent to 12,727.47 points towards the end of the first hour of trading. The MDax rose by 1.09 percent to 26,850.20 points. The EuroStoxx also won about one percent on the European stage.
“The bulls have the upper hand on the Frankfurt trading floor,” said market analyst Milan Cutkovic from broker AxiTrader. In the case of record-high Vonovia shares and Deutsche Post, the results of two Dax groups were very well received, but less so in the case of BMW.
In addition to the quarterly reporting season, the tensions between China and the United States and the fear of another corona wave remain the key issues. The discussions in the US Congress about further economic stimulus in the corona crisis also cause uncertainty. A look at the price of gold, which has recently risen above the $ 2,000 mark for the first time, shows how great the security need of many investors is.
Vonovia made it above the 57 euro mark for the first time on Wednesday with a rise of 3.3 percent. Billion-dollar purchases abroad and higher rental income have driven the profit development of Germany’s largest real estate group so far this year.
For Deutsche Post, it was 2.2 percent high. Traders praised the final figures for the second quarter as slightly better than expected, especially in terms of sales.
While the quarterly balance sheet of Allianz was less spectacular with a price increase of 0.4 percent, investors at BMW reacted particularly disappointed with a loss of 2.4 percent. The carmaker slipped into the red in the second quarter due to the coronavirus pandemic and, according to experts, failed to meet expectations.
There were also numerous company reports in the second series of indexes. In the case of Commerzbank, the figures were very well received, even if the bank is now expecting a loss due to the corona pandemic and the costs of the corporate restructuring. With an increase of 5.6 percent, the papers belonged to the top group in the MDax.
Hannover Re, however, was unable to convince its investors, with the papers down 1.5 percent. The insurer’s second quarter was weaker than expected, Pareto analyst Philipp Habler said in a first comment. The prospect of high losses from the Corona crisis has led the reinsurer to a surprisingly sharp drop in profits.
In the Dax, Fresenius suffered 3.3 percent from a negative vote from Jefferies. The analysts from New York also gave their previous buy recommendation for the Fresenius subsidiary FMC, where paper fell by 2.4 percent. Deutsche Bank is now more optimistic about ProSiebenSat.1. Here the 6.7 percent higher papers were the MDax leaders.
Over the course of the day, the focus is still on sentiment data from the service sector and on the ADP employment report in the USA. Investors will tap the signals for the official labor market report expected on Friday. According to Commerzbank, the ADP data should show that the situation on the US labor market remains precarious.
© dpa-infocom, dpa: 200805-99-47477 / 3