FRANKFURT (dpa-AFX) - After the price slide below the mark of 15 points is the Dax remained clearly under pressure on Thursday. Around noon, the German benchmark index was still down 1,64 percent at 14 points. Fired by the unexpectedly strong rise in US consumer prices, increasing inflation worries among investors had previously pushed the Dax to its lowest level since the end of March.
For the MDax of the medium-sized values in the holiday trade on "Ascension Day" fell by 1,07 percent to 31 points. Also the leading Eurozone index EuroStoxx 298,86 gave way and lost 1,55 percent to 3886,32 points.
Even in the middle of the week, the Dax had been able to recover somewhat thanks to well-received company balance sheets. However, according to market observers, there was no positive impetus right from the start on the holiday to counteract the sales pressure from the USA. There, the highest increase in US consumer prices since September 2008, reported for April, caused the prices on Wall Street to collapse further. "Investors are currently selling everything at random," wrote market expert Neil Weilson of Markets.com.
Fear rages in US markets that price pressures could stifle the recovery of the world's largest economy. Because the US Federal Reserve could then turn the interest rate screw faster than expected, which could make stocks less attractive compared to bonds and worsen financing conditions for companies. “More and more investors are taking the risk of an earlier end to the ultra-loose monetary policy seriously,” stated market analyst Milan Cutkovic.
Michael Hewson of CMC Markets pointed out that the high rise in inflation was largely due to the statistical base effect in view of the upheavals caused by the pandemic. He therefore believes investors' concerns are premature. The market watcher believes that there will be no all-clear until the US producer prices are published in the USA later in trading.
Across Europe, investors switched from risk assets to supposedly safe havens. In this country, for example, pharmaceutical stocks, which are considered defensive, benefited. Shares in dialysis provider Fresenius Medical Care (FMC) and the pharmaceutical and specialty chemicals company Merck KGaA stood out with moderate serves at the top of the Dax. The cyclically sensitive auto stocks came under pressure, however, when Daimler had to bring up the rear in the DAX , Volkswagen and the tire manufacturer Continental Accept discounts of sometimes more than three percent.
In the MDax, the biotech companies Morphosys and Evotec were among the favorites with share price gains of more than one percent in some cases. Corona profiteers were also in demand again: Shares in the cook box mail order company Hellofresh rose in price by more than three and a half percent at the top of the index and thus recovered from the latest price kink. Papers of the I.T service provider Compugroup followed at a certain distance in the row with a premium of almost two percent./tav/jha/
- By Tanja Vedder, dpa-AFX -