Positive signals from China
DAX closes at record high on Ascension Day
May 9, 2024, 7:39 p.m
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The German leading index DAX reached a new all-time high on Ascension Day. Siemens Energy is primarily responsible for the boost. The weak US labor market data is also boosting the stock market.
The DAX climbed to a record high on the Ascension Day holiday. The leading German index had already continued its recent winning streak in early trading, but only ventured to new heights in the afternoon. Encouraging economic signals from China and well-received labor market data from the USA provided tailwind. Above all, however, the below-average sales are likely to be the reason for the significant price increase, because “in the thin market, significantly fewer orders are already enough to sustainably move the DAX,” as portfolio manager Thomas Altmann from QC-Partners said.
The DAX had reached its record of 18,699.29 points in late trading and ultimately gained 1.02 percent 18,686.60 points. The MDax of medium-sized stocks only increased by 0.05 percent to 26,708.90 points.
Initial claims for US unemployment benefits are rising more sharply
“The trade data from China point to a further economic recovery and with these expectations, stocks in export-oriented companies are currently being bought in Europe,” said market expert Andreas Lipkow. In addition, the number of weekly initial jobless claims in the US rose significantly more than expected, fueling hopes of imminent interest rate cuts in the world’s largest economy. This will give the stock market a boost in this country. However, Lipkow doubted that the DAX would be able to sustainably maintain itself above the level of 18,600 points if trading activity increased again.
Shares tied at the top of the DAX Siemens Energy with a plus of 3.3 percent, the share price jumped in the middle of the week. Analysts were mostly positive after the energy technology group raised its forecast on Wednesday following a strong quarter. The demand for network technology continues to impress, wrote expert Sean McLoughlin from the bank HSBC. In addition, the problems in Siemens Gamesa’s loss-making wind business appeared to be under control.
Tank gearbox manufacturer is making up ground
The share certificates from also came into focus Renk, because they replaced Varta in the small cap index SDax. The shares of the tank gear manufacturer, which has only been listed on the stock exchange since the beginning of February, gained 4.7 percent at the top of the index. As previously announced by Deutsche Börse, the battery manufacturer Varta was removed from the index because it did not publish its audited annual financial report on time following a hacker attack.
Otherwise, many stocks in this country were traded with a dividend discount, such as Allianz, Mercedes, MTU and Vonovia in the DAX and Freenet and Fuchs in the MDax.
The Eurozone leading index EuroStoxx 50 closed 0.32 percent higher at 5054.41 points. Gains of a similar magnitude were recorded in London and increased in Paris Approximately 40 by 0.7 percent. The New York leading index Dow Jones Industrial was up 0.4 percent at the end of European trading.
The Euro benefited from the weak US labor market data and was last quoted at $1.0776. The European Central Bank had previously set the reference rate at 1.0732 (Wednesday: 1.0743) dollars. The dollar therefore cost 0.9318 (0.9308) euros. On the bond market, the current yield rose from 2.49 percent the day before to 2.55 percent. The pension index Rex fell by 0.25 percent to 124.35 points. The Bund future fell by 0.27 percent to 131.00 points.