Stock market in Frankfurt: DAX sustains decline following US data releases and in anticipation of the Federal Reserve's interest rate decision
The European stock market experienced a mixed performance on Tuesday, with defensive sectors in demand while cyclical values showed restraint. The DAX finished 0.6% lower at 23,606 points, and the MDax of mid-sized companies slipped 0.2% to 30,422 points.
One of the most notable movements was in Puma's share price, which rose by 4.4% due to speculation about a possible merger with Adidas. However, Adidas' share price fell by 0.7% as a result of the potential merger speculation.
In the DAX, shares of Deutsche Börse, Munich Re, Hannover Re, Allianz, Deutsche Bank, and Commerzbank were among the weakest. Beiersdorf shares suffered from a downgraded buy recommendation from Jefferies and initially fell to their lowest level in over three years.
On the other hand, Thyssenkrupp's shares gained 5.9% due to strong interest in the steel business and a non-binding offer from Indian steel company Jindal for Steel Europa.
Analyst Oliver Frey of Metzler considers the 33% drop in Atoss's stock over the past eight weeks as an attractive opportunity for investors. Atoss Software's shares rallied by 5.3% in a recovery attempt after private bank Metzler issued a buy recommendation.
Schaeffler aims to double its operating result in the coming years, with a planned achievement of the break-even point in the electric vehicle segment. Schaeffler's CEO, Klaus Rosenfeld, plans to increase the group's adjusted operating margin before interest and taxes to 6 to 8% by 2028.
Investors are anticipating the US Federal Reserve to cut its key interest rate for the first time this year. Some investors are considering a larger 0.5 percentage point cut by the US Federal Reserve. Analyst Ralf Umlauf of Landesbank Hessen-Thüringen emphasized that there are hardly any doubts about a monetary easing.
Meanwhile, market participants are growing increasingly unwilling to buy into the overall market. Despite the surge, Siltronic shares are still down nearly 15% since the beginning of the year, even after surging nearly 10% on Tuesday, moving back above the 50-day and 100-day moving averages.
Atoss is backed by a strong financial profile and a leading position in the structurally growing market for human resources management. Siltronic, a company in the SDax small-cap index, also has a strong position in the semiconductor industry.
The Eurozone benchmark index EuroStoxx 50 also went down 0.1%. Market participants will be closely watching the US Federal Reserve's interest rate decision for further cues on the global economic outlook.
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