The Dax fell 0.65 percent to 16,921.96 points, but is still within striking distance of the all-time high of around 17,050 points it reached the previous day. Analysts consider it positive that the main German index was able to close above 17,000 points on Tuesday for the first time. This indicates that prices will continue to rise, according to chart experts at HSBC bank. The MDax of the 50 middle stocks fell 0.42 percent to 25,711.39 points in the middle of the week.
In this country, total output in the manufacturing sector surprisingly fell significantly in December. “The downward trend continues,” commented analyst Jens-Oliver Niklasch at Landesbank Baden-Württemberg. Since May 2023, production has slowed or stagnated. “This shows the difficult situation the industry is in here.”
Banking sector under pressure: Deutsche Bank loses 5.6 percent
Statements from the European Central Bank (ECB) tended to support bond market yields and therefore weighed on risky securities such as stocks. Board member Isabel Schnabel once again spoke out against rapid interest rate cuts. Recent economic data has shown that the central bank should act “with patience and caution” in the event of a possible easing of monetary policy.
Shares of Deutsche Bank and Commerzbank fell under pressure, losing 5.6 and 3.4 percent respectively. Traders cited fresh turmoil at U.S. regional banks as a reason for the cloudy industry sentiment.
KfW separates from DHL's multi-billion dollar share package
The second biggest loser on the Dax, behind Deutsche Bank, was the DHL group with a loss of 5.2 percent. The federal government, as the main shareholder, had placed a block of shares worth billions on the market through its development bank KfW, which had a negative impact on the share price.
The business figures of the DAX companies were largely received positively. Shares in energy technology group Siemens Energy rose 0.9 percent and reinsurer Hannover Re rose 1.7 percent. However, shares of diagnostic specialist Qiagen fell 2.3 percent.
SMA tops MDax, Compugroup disappoints with numbers
SMA Solar shares rose nine percent at the top of the MDax and, like other stocks in the sector, benefited from the optimistic outlook of US competitor Enphase Energy. It had predicted a possible bottoming out for the under-pressure solar market in the current quarter.
Software provider Compugroup, specializing in doctor's offices and hospitals, was disappointed with its business figures despite prospects for further growth and higher operating profits. Investors reacted in shock and the stock plummeted 18 percent. This meant they were at the bottom of the SDax small cap index.
The EuroStoxx falls slightly to 4,678.85 points
The leading index of the eurozone, EuroStoxx 50, closed with -0.26 percent, up to 4,678.85 points. The Paris Stock Exchange posted similar losses and London's FTSE 100 fell 0.7 percent. In New York, the Dow Jones Industrial rose 0.4 percent at the close of European trading.
The euro rose. The ECB set the reference rate at 1.0776 (Tuesday: 1.0743) US dollars. Therefore, the dollar costs 0.9279 (0.9308) euros.
Current yield drops to 2.30 percent
In the bond market, the current yield on German federal bonds fell from 2.33 percent the day before to 2.30 percent. The Rex bond index rose 0.19 percent to 125.79 points. The Bund future fell 0.31 percent to 134.09 points.