Investors in Europe ventured further in three stages on Tuesday. Given the share price highs, even small moves were enough to set new records. A 0.3% increase pushed the European leading index Euro-Stoxx-50 to a record low of 4,192 points. it went a little slower Dax ahead, which improved 0.2% to 15,771 points. The small cap indices M-Dax and S-Dax, on the other hand, set new records.
“In the next few days, volatility could increase due to the many speeches by representatives of the US Federal Reserve and the highly anticipated US inflation report,” said Lukman Otunuga, analyst at trading house FXTM. Due to the expected increase in price fluctuations, investors are prepared to pay significantly higher prices again to hedge their portfolios, confirmed Thomas Altmann, portfolio manager at asset manager QC Partners. “Jerome Powell can already use the central bank meeting in Jackson Hole to swear the markets on a tighter course,” Altmann said.
Munich Re’s quarterly figures supported Dax. Despite the threat of high losses from flooding in Europe, the reinsurer sees itself on track to meet the profit target for 2021. The stocks gained 1.4% in value. Agrochemical and pharmaceutical company Bayer also received a loss in the United States in the third of its US appeal proceedings over the suspected cancer risks of glyphosate, a weedkiller. Nevertheless, the share eventually turned slightly into positive territory. Shares of mail-order cooker box Hellofresh were M-Dax’s top favorites with a 9.2% jump from final quarterly figures. Shares of mechanical engineering and plant company Dürr rose six percent following a buy recommendation from Bank Berenberg. Shares of online furniture retailer Home24 climbed 27%, leading the winners of S-Dax. Investors rewarded the growth in activity despite the reopening of stationary furniture stores. After the lockdown, the opening stages first affected the crown profiteers. On Wall Street, the Dow Jones gained 0.4% to 35,252 points mid-term.