At the end of a strong week on the stock market, the Dax hit another high on Friday. The current hype around artificial intelligence (AI) and Nvidia's strong midweek quarterly numbers continued to resonate. After an initially calm first half of trading, starting in the afternoon the US stock markets once again gave new impetus to this country.
With a record of 17,443 points, the main German index rose a few points above the level reached the day before; At the close of the session the increase was still 0.28 percent, up to 17,419.33 points. This brings the weekly balance of the leading index to just under 1.8 percent, the biggest gain since late January.
Expert warns about discrepancy between stock market and real economy
Konstantin Oldenburger of CMC Markets expects the winning streak to continue: “The DAX is heading towards its next intermediate target, the 17,500 mark. As in a textbook on charts, he uses the base he has built during weeks of consolidation of around 17,000 points as a springboard for the next sound barrier with the number 18 before the thousand point. But the expert also warned about the great discrepancy “between “the economic reality in Germany” and a stock market at record levels. “For now, however, the current enthusiasm for artificial intelligence is driving the stock market higher.”
At the end of the week, the quarterly reports of the DAX heavyweights Allianz, BASF and Deutsche Telekom attracted attention in our country: all three stocks fell, in some cases significantly. This was offset by further price increases, especially in the automotive sector, with up to 1.85 percent for Porsche AG. The leader of the leading index was Rheinmetall with an increase of a good 2.1 percent. The record streak continued here.
Taking profits at Allianz and Hensoldt
According to the figures, Allianz newspapers lost more than three percent. Traders explained this with profit-taking after a strong months-long run. The insurer's price recently reached its highest in more than 20 years, above 250 euros. BASF shares fell about half a percent. The chemical company's prospects for cash inflows are disappointing and call into question the amount of the dividend, said a stock market investor. Deutsche Telekom also failed to convince investors with its figures: the share price fell by almost one percent.
On the MDax, Hensoldt investors also took advantage of the balance sheet presented by the defense electronics manufacturer. Analysts were especially disappointed with the outlook, from which they expected more. Shares ended the weekend with a loss of 7.1 percent. This means that much of the price rally since late January has disappeared.
Buy recommendation weighs on Krones
Krones shares also fell sharply, falling five percent. The investment bank Hauck Aufhäuser had withdrawn its buy recommendation for the shares of the beverage bottling systems manufacturer.
Away from the major indexes, shares of hemp processor Synbiotic rose in price by about a fifth. The trigger was the Bundestag's decision on Friday to limit the legalization of cannabis in Germany.
Current yield rises to 2.51 percent
European stock markets also continued to rise. The Paris and London stock markets posted moderate gains. The EuroStoxx 50, the main euro zone index, extended its growth to its highest level since 2000 and rose 0.35 percent to 4,872.57 points. On Wall Street, the record rally continued with new records in the tech-heavy Dow Jones Industrial, S&P 500 and Nasdaq 100.
In the currency market, the euro last cost 1.0826 US dollars. The European Central Bank (ECB) had previously set the reference rate at $1.0834.
In the bond market, the current yield increased from 2.48 percent the day before to 2.51 percent. The Rex bond index fell 0.22 percent to 124.72 points. The Bund future rose 0.57 percent to 133.28 points.