Frankfurt Stock Exchange
Dax loses profits – nervousness ahead of Jackson Hole conference
The Dax is the most important stock index in Germany. photo
© picture alliance / dpa
On the day the central banker meeting in Jackson Hole began, investors in the German stock market got cold feet. After initially positive economic news from Germany and China provided a boost, the momentum in trading slowed noticeably.
On the day the central banker meeting in Jackson Hole began, investors in the German stock market got cold feet. After initially positive economic news from Germany and China provided a boost, the momentum in trading slowed noticeably.
The Dax recently fell slightly to 13,214.68 points. The MDax for medium-sized companies fell by 0.19 percent to 26,008.03 points. The leading eurozone index, the EuroStoxx 50, was treading water.
Stockbrokers justified the initial price gains, among other things, with the fact that China has announced further billions in aid to stabilize the country’s ailing economy. In addition, the German economy unexpectedly grew slightly in the second quarter. Furthermore, the Ifo business climate index for August was better than expected.
Markets, meanwhile, are eagerly awaiting impressions from the multi-day conference in Jackson Hole, Wyoming, which begins on Thursday. The focus is on a speech by Fed Chair Jerome Powell, which will not be held until Friday. The main puzzle is the speed of interest rate hikes by the US Federal Reserve.
Among the individual stocks, Aroundtown is one of the focal points. The commercial real estate specialist got a boost in the first half of the year mainly thanks to its residential real estate subsidiary Grand City Properties. According to dealers, the operating profit was better than expected. However, the share certificates turned slightly negative in the deteriorating market. The current environment of rising interest rates is not favorable for real estate values. Financing conditions can deteriorate, and there is also a risk of a fall in real estate prices.
At the end of the MDax, Uniper’s shares fell by more than four percent. Concerns that the state aid that had been decided on might not be sufficient in view of the rising gas prices continued to spread. According to an optimistic analyst study, Munich Re shares made a positive impression on the Dax and rose by a good one percent.
