DAX increases again
Thyssenkrupp subsidiary Nucera impresses on debut
7/7/2023, 7:18 p.m
Persistent interest rate concerns have sent the DAX plummeting in the past few days. Job data from the USA help the leading German index out of its misery. Nucera’s stock market debut also ensures a pleasant end to the week for investors.
An unexpectedly low level of US job creation kept interest rate concerns on Europe’s stock exchanges in check at the end of the week. The DAX interrupted its series of losses lasting several days and gained around 0.5 percent to 15,603.40 points, the EuroStoxx50 gained 0.3 percent. On a weekly basis, however, the leading German index lost 3.4 percent. Because the fear of ever increasing interest rates and the consequences for economic growth is still a brake on the stock exchanges.
Nucera’s stock market debut provided a topic of conversation on the Frankfurt stock exchange floor. The shares of the hydrogen subsidiary of Thyssenkrupp temporarily rose by a good 23 percent to 24.68 euros compared to the issue price of 20 euros. From the trade they went with 23.52 euros.
“The company has yet to become profitable, but investors are banking on the company’s technology and the strong growth prospects for green hydrogen,” said Christof Muerb from Deutsche Bank, which organized the IPO together with the US institute Citi. On the other hand, Kion flew out of the depots after the departure of the chief financial officer, who took office just six months ago. The shares of the forklift manufacturer lost 4.8 percent.
You can read in detail how the trading day went on the Frankfurt trading floor in our stock market day.
In Copenhagen, Coloplast shares fell 2.8 percent. The Danish medical technology group is buying the Icelandic company Kerecis, which specializes in wound care products made from fish skin, for 1.3 billion dollars and is planning a capital increase. In London, OSB Group shares fell 28.8 percent, the lowest since November 2020. The home financier expects a loss of up to £180m as clients refinance their mortgages earlier than forecast.
A booming job market harbors risks
Wall Street was little up for the day following the release of the jobs data. In June, 209,000 new non-farm jobs were created in the USA, which was less than expected. However, there was not too much euphoria in view of the fact that the overall slowdown in the labor market was slow. “The increase in employment is still solid and the unemployment rate is low, while wage increases are respectable and the annual rate has even increased,” explained Helaba expert Ralfcircul.
In the central bank’s fight against inflation, a booming job market harbors risks. Companies often have to lure new staff with higher wages and try to pass the increased costs on to customers. “The Fed will stick to the announced interest rate hike at the end of the month and will also keep all options open depending on the data development,” said the expert in circulation.
Calm returned to the bond markets one day after the sell-off as a result of mounting interest rate concerns. At 2.638 percent, the yield on the ten-year federal bond was at the previous day’s level, after having temporarily been at its highest level in four months at 2.662 percent. The dollar index, which tracks the value of the greenback against other major currencies, fell 0.7 percent to 102.35 points. The euro, on the other hand, was up 0.6 percent at $1.0956.