FRANKFURT (dpa-AFX) – The Dax, which has recently stabilized after a mediocre first half of June, is by no means guaranteed to continue to rise in the new trading week. Uncertainty remains too high among investors due to new elections planned in France at the end of the month and the beginning of July following the surge of the right in the European elections. “The fear that, depending on the election result, France will be less concerned about its debt and less compliant with the EU in the future could continue to weigh significantly on financial markets,” writes Robert Greil, chief strategist at the private bank Merck Finck, in its prospects.
A pause in the U.S. stock market’s recent record rally, or even a correction, could also put pressure on local prices. The fact that the Dax has not been impressed recently by some profit-taking in the United States is rather a strange picture, as noted by analyst Konstantin Oldenburger of broker CMC Markets. Possible EU penalties on Chinese electric cars and the customs dispute that could result from them are other factors weighing on the stock markets.
However, analyst Frank Wohlgemuth of the National Bank in Essen advises to remain calm, even in times of turmoil. “We should also not forget that global stock markets have risen significantly this year so far, following a more than successful 2023.” Breathing is therefore certainly desired by many parties in order to be able to reposition themselves at slightly more moderate levels. Wohlgemuth remains confident, but warns that the stock markets will find themselves under the influence of politics in the short term, which could lead to significant fluctuations.
The amount of economic data and company information that could influence prices in the new week is limited. The Ifo index will be published on Monday. It will provide the latest impressions on the situation and outlook for the German economy.
It will be particularly interesting to see how business morale reacts to the political uncertainties linked to the European elections, explained Ulrich Kater, chief economist at DekaBank. In addition to the Ifo index, consumer prices from some Eurozone countries and price data from the United States are expected to be taken into account at the end of the week.
The DIY group Hornbach Holding will publish its quarterly results on Tuesday and the pharmaceutical equipment manufacturer Schott Pharma on Thursday. These two companies are listed in the SDax index of secondary stocks.
The quarterly reports of some non-German companies may also have influenced the actions of their German competitors. So, after the figures from the American logistics company Fedex (Tuesday after the close of the American stock market), investors should monitor the price reaction of DHL Group. Regarding the results of the Swedish textile chain Hennes & Mauritz (H&M), scheduled for Thursday, it could be interesting to look at its competitor Hugo Boss.
Varta’s annual results are on the agenda on Friday. It’s questionable whether they can still shake things up, given that the battery maker has just lowered its revenue forecast for the current year, which has – once again – caused disillusionment among investors. Most recently, Varta shares were excluded from SDax due to a hack that prevented the audited annual financial report from being published on time.
Adidas and Puma SE reacted Friday to Nike’s quarterly report, which the American sports equipment manufacturer will present Thursday after Wall Street closes.
Chipmaker Micron’s quarterly results, released Wednesday, are also important for the entire technology sector. The semiconductor sector is currently fueled by the artificial intelligence (AI) craze and, like Nvidia, Micron recently hit record highs before paying tribute to its rally./ajx/ag/ put
— By Achim Jüngling, dpa-AFX —
