Stocks in the DAX index are declining, while gold prices are surging: Companies like Rheinmetall, Renk, Bayer, Brenntag, Porsche, BASF, Infineon, and Oracle are drawing attention.
DAX's Downward Spiral
The afternoon bells are tolling for another tumultuous trading session as the DAX (WKN: 846900) slides further, ending Tuesday with a 0.8% drop at a staggering 23,987.56 points. This descent takes the German benchmark index one step away from its all-time high, 24,749 points, achieved just last week. Brokers predict the DAX to open 0.3% lower at 23,913 points tomorrow.
Investors should especially keep an eye on US consumer price data coming later today as it may shed light on the impact of US trade policies. Oracle, on the other hand, will announce its quarterly earnings after the US market closes tonight.
Some defense stocks like Rheinmetall, Hensoldt, and Renk have been in the spotlight, with Renk leading the pack as the biggest loser, despite a slight uptick in yesterday's trading. Porsche AG, BASF, Brenntag, Infineon, and Porsche SE remain the DAX's topperformers from the previous session.
Investors have been monitoring Renk's tumultuous past few weeks. The stock declined by double digits recently, but the exact reason behind this precipitous drop remains unclear as the latest data suggests a slight increase in Renk's share price on June 18, reaching new heights[2][4].
The broader market context over this period points to various economic factors, including weak global economic data, worries about US fiscal issues, and rising bond yields, which have caused turmoil in equity markets worldwide[5]. Furthermore, today's trading volume on Nasdaq plummeted a staggering 52%, indicating a significant drop in overall market activity[1].
Given this backdrop, it's possible that Renk's stock might have declined significantly on June 18 due to broader market volatility and economic uncertainty factors rather than Renk-specific developments. As of now, no explicit cause for Renk's diminished value on that particular day has been identified in available sources.
Elsewhere, analysts' insights are drawing attention. Swiss bank UBS downgraded Deutsche Börse from "Buy" to "Neutral" and lowered its price target to 309.00 euros. JPMorgan reduced Brenntag's price target to 56.00 euros, while adding a "Negative Catalyst Watch" label. Conversely, HSBC upgraded Bayer from "Hold" to "Buy", boosting its price target to 32.00 euros. Bitcoin perseveres at high levels, trading at $109,558, while gold has slightly recovered, with the troy ounce trading at $3,339.
Wall Street ended Tuesday in the positive, driven by Intel, Tesla, Nike, and Disney. Salesforce, however, trailed behind. Major Asian markets opened in the green today, with the Japanese Nikkei 225 gaining 0.6%, the CSI 300 of Chinese mainland stocks rising 0.8%, and the Hang Seng in Hong Kong advancing 1%. Throughout the day, DER AKTIONÄR will keep you updated on the latest developments and news from national and international markets.
Investors should pay close attention to the potential impacts of the upcoming US consumer price data on the stock-market, as it may influence the direction of the DAX following its recent downward spiral. The finance sector might also be affected by analysts' opinions on various companies, such as the recent downgrade of Deutsche Börse by UBS and the subsequent price target adjustment.
