Stock market – Dax stagnates after a record economy

Of Dax barely moved on Monday after the most recent record hunt. At the end of the session, the German benchmark was 16,047 points, almost at the level of the previous day. Friday, the Dax had reached a record of 16,084 points in the exchanges. “Market participants seem to be waiting for a correction to be able to jump on the moving stock market bandwagon,” said analyst Christian Henke of brokerage IG. “The fall rally has been a success so far. The icing on the cake would be the transition to an end of year rally.” The number of coronavirus infections, which is on the rise again, has so far played no role on the stock market, said investment strategist Jürgen Molnar of brokerage firm RoboMarkets. “As soon as the euphoria over the current season of positive reporting is over, the negative side effects of the pandemic could again become a burden on the stock market.”

On the Dax, there were significant price fluctuations at the start of the week. Henkel shares fell 6.5% at the end of the index. The consumer goods group expects full year results only at the bottom of the forecast range. A skeptical analyst study has lowered VW shares by less than 2.8%. The automaker could not keep up with the rapid development of electric car maker Tesla, wrote expert Philippe Houchois of investment bank Jefferies. The Wolfsburgs are set up too complex and must struggle with contaminated sites and government influence. Tesla is not an existential threat, but owning VW stocks is unattractive in this context. At the top of Dax, papers from energy technology company Siemens Energy rose five percent. The wind power subsidiary Siemens Gamesa had presented bleak prospects. But after the very low turnover recently shown by competitor Vestas, a lot of negative things have probably already been incorporated into the price, said a stockbroker.

The passage of a billion dollar infrastructure bill in the United States has created a good mood on the American stock exchanges. Of Dow jones increased by 0.2 percent. Among the stocks in the leading index, investors mostly hedged with shares of construction equipment maker Caterpillar, which rose 3.6%.

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