Frankfurt equities outlook: expected to rise after a setback
FRANKFURT (dpa-AFX) – After two weak trading days, the Dax (DAX 40) initially seems to catch up at the beginning of the week. The X-Dax as an indicator for the German leading index Dax (DAX 40) signaled an hour before the start of trading, an increase of 0.32 percent to 15,999 points. The leading Eurozone index EuroStoxx 50 (EURO STOXX 50) was also expected to be slightly positive.
In the middle of the previous week, the Dax had reached its record high of 16,285 points, up to five points, until it ran out of strength. Market analyst Michael Hewson from broker CMC Markets UK explained that the previous week had two faces, initially with enthusiasm and then strong inflation concerns. The US Federal Reserve may have to counteract the high inflation more clearly than previously thought.
On the corporate side, it was primarily analyst comments that attracted attention in the market. The BMW share was traded 1.3 percent higher in Tradegate after a buy recommendation by the US bank Goldman Sachs. Analyst George Galliers praised the favorable valuation of the share against the background of the planned consolidation of the joint venture BMW Brilliance Automotive.
HSBC’s buy recommendation was canceled for adidas shares, which lost 0.4 percent before the IPO. Citigroup, on the other hand, made a buy recommendation for the chip company Infineon, whose shares were up 1.6 percent prior to the market. Investors have recently approached the technology sector with particular caution because of concerns about rising interest rates and the risk that these will slow down growth in the sector.
Meanwhile, the Siemens Healthineers share on Tradegate was just in the red. Here, dealers referred in the morning to a media report, according to which the medical technology company is preparing for further large acquisitions after the billion-dollar acquisition of Varian. According to a stockbroker, investors can react nervously to such reports ./tih/mis
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