Frankfurt/Main – Even the later trading day brought no turnaround for the Dax, which was rushing downwards.
Burdened by disappointing business figures from the US banking sector and a weak Wall Street, the German stock market again lost significant ground on Thursday.
The Dax steadily increased its losses and at times fell below the 12,450 point mark in late trading. Ultimately, the leading German index lost 1.85 percent to 12,519.66 points.
The MDax for medium-sized companies fell by 1.95 percent to 25,005.51 points.
The other leading European exchanges also posted clear losses. The EuroStoxx 50 fell by 1.7 percent. The losses in the leading indices in Paris and London were in a similar range. In New York, the Dow Jones Industrial was down 1.0 percent at the close of European trading.
The largest US bank JPMorgan, like its competitor Morgan Stanley, suffered a surprisingly sharp drop in earnings in the second quarter. JPMorgan also suspended the multi-billion dollar buyback of its own shares announced in April to meet higher capital requirements. The papers of both houses came under selling pressure.
Deutsche Telekom shares fell 2.2 percent. The Bonn-based company is selling a 51 percent majority in its radio tower business to an investor duo consisting of the Canadian financial investor Brookfield and the US infrastructure investor Digital Bridge. Telekom put the enterprise value of GD Towers at 17.5 billion euros excluding debt and cash.
The fact that Hugo Boss is now more confident after a surprisingly good second quarter for the year as a whole caused the fashion group’s shares to rise by 2.4 percent. This made them one of the biggest MDax winners.
Semiconductor stocks benefited from encouraging news from Taiwan Semiconductor Manufacturing Company (TSMC). The company, which is one of the world’s largest semiconductor manufacturers, published surprisingly strong quarterly figures and increased its sales outlook. In the Dax, Infineon, one of the best index values, lost only 0.6 percent and in the MDax the shares of the high-tech machine manufacturer Aixtron even went up by 1.2 percent.
Otherwise, analyst comments caused price swings. Some chemical stocks suffered from a negative industry study by UBS. In the Dax, BASF lost 2.5 percent after the Swiss bank downgraded the share and now recommends selling it. The quarterly figures from chemical companies are likely to be robust again, but they will quickly disappear in the rear-view mirror, wrote analyst Andre Stott. The industry is experiencing a difficult time given the gas supply crisis and poor consumer sentiment. Stott dropped his buy recommendation for Evonik, after which the share fell by 2.9 percent in the MDax.
The euro last cost 1.0028 US dollars. In the meantime it had fallen well below parity. The European Central Bank set the reference rate at $1.0005 in the afternoon. The current yield on German Bunds rose from 0.99 percent the previous day to 1.09 percent. The Rex pension index fell by 0.62 percent to 134.80 points. The Bund future lost 0.36 percent to 152.37 points.
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