FRANKFURT (dpa-AFX) – The German stock market continued its record run on Thursday. Both Dax (DAX 30), MDax and SDax climbed to highs. The announcement of additional government spending by future US President Joe Biden provided a boost. This should now have to reckon with less political resistance, since according to the current status the Democrats have now also gained control over the US Senate – and thus over the entire Congress. In addition, strong incoming orders for the German industry in November and the approval of a second corona vaccine in the European Union helped.
The leading German index had gained 0.67 percent to 13,984.62 points by lunchtime. The MDAX for medium-sized stocks rose by 0.46 percent to 31,264.86 points. The SDAX small cap index broke the 15,200 point mark for the first time. For the leading Eurozone index EuroStoxx 50 (EURO STOXX 50) it rose by 0.31 percent around noon.
“Investors concentrate on the positive. The negative is ignored or at least weighted low in the decision-making process, because many have new risk budgets available at the beginning of the year,” said portfolio manager Thomas Altmann from QC Partners in Frankfurt. “And despite all worries about a possible end to the rally, the fear of missing out on the next price increases is even greater at the moment.”
For the technical chart analyst Martin Utschneider from the bank Donner & Reuschel, the mark of 15,000 points for the Dax is unchanged “a realistic target for the stock market year 2021”, as he said. He expects a jump over 14,000 meters in the course of this week.
Among the individual stocks in the Dax, HeidelbergCement and Bayer stood out positively and Delivery Hero negatively. The share of the building materials manufacturer HeidelbergCement, which in view of the political outlook in the USA had already risen by a little more than 4 percent the day before, gained another 3.8 percent at the top of the index. The major French bank Societe Generale has issued a buy recommendation with a view to the Group’s US business. Analyst Xavier Marchand expects the Democrats in the US to push ahead with infrastructure projects. He pointed out that around 20 percent of the Heidelberg company’s value can be assigned to this area.
Bayer rose by 3.4 percent, because together with the Tübingen-based company CureVac, the pharmaceutical and agrochemical company wants to advance the further development, production and sale of a corona vaccine. Both signed a cooperation and service agreement with one another. Curevac benefited even more from the joint plans and gained 14 percent on the Tradegate trading platform.
Delivery Hero shares fell by 1.7 percent to 136 euros after a capital increase. A total of almost 9.5 million new ordinary shares were sold to institutional investors at a price of EUR 132 per share. The price minus in view of the capital increase, however, is a sign that investors are taking the step very positively, after all, the money should also be invested in growth.
From the second row, Knorr-Bremse was in view with a plus of 3.1 percent, which climbed to the highest level in its two-year history. A freshly issued buy recommendation from the US investment bank Bank of America (BofA) drove the price. Analyst Alexander Virgo expects global truck production to increase by 10 to 20 percent this year and next. The paper from the chemicals trader Brenntag also reached a record high.
The share of the wind turbine manufacturer Nordex climbed by 2.3 percent to a new high since October 2016. This was not only driven by another major order, but above all the political outlook in the USA. As President of the United States, Joe Biden plans to invest trillions of dollars in a green infrastructure program in the coming years. This should now be easily enforceable, provided that the Democrats have control over the entire Congress./ck/mis
— By Claudia Müller, dpa-AFX —
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