The current price recovery took the Dax one step closer to its all-time high on Tuesday. The main German index ended another day of the reporting season up 1.40 percent at 18,430.05 points. It was the third consecutive day of victories.
The Dax is only 0.7 percent away from the record of 18,567 points reached in early April. Stock brokers pointed out that lately there was a lack of buyers in the area above 18,200 points. But now the DAX has clearly surpassed this threshold. Another record is just a matter of time, wrote analyst Konstantin Oldenburger at trading firm CMC Markets.
Zalando and Infineon give Dax a boost
The price rises of Infineon and Zalando, in particular, proved to be supportive for the share price on Tuesday. The DAX had also recently benefited from investors' rising hopes that the US Federal Reserve would soon cut key interest rates.
On the contrary, significant price losses of several reporting companies put the brakes on the MDax on Tuesday: the index of medium-sized stock companies finally stopped with a loss of 0.02 percent at 26,561.47 points.
Chip company Infineon convinces despite forecast reductions
The eurozone's leading index, EuroStoxx 50, rose 1.2 percent. Things also improved significantly in Paris and London. In contrast, the US leading Dow Jones Industrial index and the Nasdaq 100 technology index only managed moderate gains at the end of European trading.
On the Dax, Infineon led the list of gainers with a rally of almost 13 percent. Shares of the chip company hit their highest level since the beginning of the year. The no longer surprising reduction in annual objectives left shareholders cold. Jefferies analyst Janardan Menon assumes that potential further cuts would be very modest at best. However, current outlooks may be too conservative.
Zalando strong according to the figures, its shares gain 8.5 percent
Despite the mixed results, there were also many investors willing to buy into Zalando, as demonstrated by the 8.5 percent price increase. Online fashion commerce was especially favored by its surprisingly high profitability.
In contrast, Siemens Healthineers fell 0.9 percent following recent price stabilization. The general improvement in business development of the medical technology group was offset by weakness in the important imaging division.
Teamviewer shares plummet, revenue and margins disappointing
On MDax, Teamviewer was the biggest loser at -8 percent. The disappointing evolution of turnover and margins was particularly criticized. However, the shares of the remote maintenance software specialist were able to considerably contain their initial heavy losses.
In the neighboring FMC index, investors had to digest a 5.5 percent price drop. The dialysis specialist's only confirmed prospects were apparently not enough for investors after the strong start to the year. Furthermore, the stock had been performing well lately.
Arms boom cannot prevent Hensoldt losses
For Jungheinrich things fell by 3.6 percent after the logistics services provider disappointed with its profitability. Defense electronics specialist Hensoldt was back in the red last quarter despite the arms boom, which was punished by share price losses of 3.4 percent.
The biggest loser on the small-cap SDax index was Salzgitter with a loss of 9.4 percent. Due to the weakness of the German economy, the steel company significantly lowered its pre-tax profit target, just seven weeks after announcing the outlook, as Baader analyst Christian Obst critically noted.
In contrast, battery manufacturer Varta rose to the top of the index thanks to a 14.4 percent price increase, despite the impending exit from the SDax due to the failure to “publish the audited annual financial report on time.” after a hacker attack.
Current yield drops to 2.49 percent
The euro was little changed at $1.0768. The European Central Bank (ECB) had previously set the reference rate at $1.0766.
In the bond market, the current yield on German securities fell from 2.50 percent the day before to 2.49 percent. The Rex bond index rose 0.08 percent to 124.69 points. Bund futures gained 0.27 percent to 131.79 points.