The Dax closed the day with a discount of 1.32 percent, up to 18,076.69 points. It ended the trade just above its daily low, which it reached later that afternoon. The 21-day line, currently around 18,140 points, which signals the short-term trend and which previously served as support, has been broken. However, chart-oriented analysts remain optimistic. “Only when the DAX falls below the high-volume price zone at 17,900 points do signs of a more pronounced phase of weakness become more evident,” say the experts at “Index-Radar.”
The MDax of shares of the medium-sized stock exchanges fell by 0.53 percent to 26,992.47 points on Tuesday. The EuroStoxx 50, the main index of the euro region, lost 1.09 percent to 4,990.90 points. The French Cac 40 closed similarly weakly, while the British FTSE 100 fell only moderately. At the same time, US stock markets also fell moderately.
The next litmus test will come with consumer prices in the US.
According to “Index-Radar”, the next litmus test for the Dax will be the March consumer prices in the United States. However, according to them, interest rate cut expectations for the US Federal Reserve have now been “appropriately reduced” and have returned to their lowest level since mid-October. The ECB is also not expected to make any move on interest rates on Thursday. According to Index-Radar experts, an interest rate reduction of 0.25 percentage points will probably be announced in June. “But if Americans don't follow suit quickly, European monetary authorities are likely to refrain from further easing.”
Chipmaker Infineon rose 3.8 percent
Shares of chipmaker Infineon rose 3.8 percent on the Dax. According to a report by “DigiTimes”, the American chip company Micron wants to significantly increase the prices of certain memory chips. According to the newspaper, Samsung and SK Hynix are also expanding their production of memory chips (DRAM).
In contrast, Daimler Truck was one of the weakest stocks in the main index with -4.0 percent. The commercial vehicle maker's sales fell in the first quarter compared to the same period last year. Demand for trucks was particularly weak in Asian markets. Traton lost 1.0 percent on the SDax after hitting an all-time high in early trading.
Arms stocks such as Rheinmetall and Hensoldt suffered profit-taking after their records and remained red lanterns in their respective indices. According to a study by the major British bank HSBC, Scout24 fell 2.9 percent. Analyst Christopher Johnen canceled his buy recommendation.
The new order inspires Nordex
By contrast, a new order from South Africa's Nordex temporarily helped the wind turbine maker's shares reach their highest level since late July. They left the negotiation with a plus of 2.0 percent.
The euro was trading at $1.0857 in the early afternoon. In the afternoon, the ECB set the reference exchange rate at 1.0867 (Monday: 1.0823) US dollars. Therefore, the dollar costs 0.9202 (0.9239) euros.
In the bond market, the current yield fell from 2.49 percent the day before to 2.45 percent. The Rex bond index rose 0.16 percent to 124.87 points. The Bund future recently gained 0.56 percent to 132.59 points.