Stock market: Dax up, Delivery Hero share price rally after crash

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Trader on the stock exchange:

The Dax rises significantly on Tuesday

Photo: A3602 Frank Rumpenhorst/ dpa

Glimmers of hope in the Ukraine conflict put the German stock market on course for recovery on Tuesday.

According to reports from the Russian news agency Interfax, Russia is apparently withdrawing some troops in the south and west to the barracks.

On the stock market, investors reacted with relief.

The Dax recently gained 1.7 percent to 15,375 points.

In addition to Delivery Hero and Hellofresh, the winners in the Dax also included the car stocks Porsche and Continental, which each increased by around 4 percent.

Should the leading German index be able to stay above the 15,000 point mark that day, this would be a positive signal, explained capital market strategist Jürgen Molnar from broker Robomarkets.

At the moment it looks as if the “bulls” – i.e. investors who are betting on further price gains – are doing everything they can to get the market out of the danger zone.

The MDax of medium-sized stocks advanced by 1.28 percent to 33,153 points in the first hour of trading.

The Eurozone's leading barometer, the EuroStoxx 50, gained 1.3 percent.

In addition to the geopolitical risks, the sharper pace of the US Federal Reserve to combat inflation remains one of the main burdens for the stock market.

Many market observers expect the US interest rate to rise by 0.50 percentage points in March.

Improved economic expectations

The economic expectations of German financial experts have meanwhile brightened again in February.

The ZEW sentiment barometer rose by 2.6 to 54.3 points compared to the previous month, as reported by the Center for European Economic Research in Mannheim on Tuesday.

On average, analysts had expected a slightly stronger increase to 55.0 points.

The assessment of the economic situation improved, but also less than expected.

The indicator rose by 2.1 points to minus 8.1 points.

Here minus 6.5 points had been expected.

"The economic outlook for Germany improved again in February, despite growing economic and political uncertainties," commented ZEW President Achim Wambach.

Delivery Hero share rises in double digits: recovery attempt after price fall

Delivery Hero's shares followed their recent recovery after the previous week's price collapse on Tuesday and rose by around 12 percent.

The papers of the delivery service Delivery Hero slipped below 40 euros on Monday for the first time since October 2019, before a recovery began on the same day.

On Tuesday late morning, there was an increase of 12 percent to around 48 euros.

The news that co-founder and company boss Niklas Östberg had acquired shares in Delivery Hero worth almost 14 million euros last Thursday also helped.

When a CEO buys stock in their own company, it's usually a reassuring sign for other shareholders.

Such a step is intended to strengthen trust in the company.

On Thursday, the food delivery service shocked investors with a gloomy outlook and caused severe turbulence in the price, but the shares could have bottomed out at EUR 40 for the time being.

Credit Suisse also wrote on Tuesday that the price slump of more than 40 percent within a few days was exaggerated - and stuck to its positive vote for the shares.

The shares of the online used car dealer

4.3 percent at the top of the MDax after falling to a record low on Monday.

Gold price at eight-month high

In the Ukraine crisis, gold is again in greater demand as a safe investment haven.

On Tuesday, the price of a troy ounce (about 31.1 grams) of the precious metal rose to 1879 US dollars.

This marked the highest level since June 2021.

The price of gold has risen by around 50 dollars since last Friday, and shortly before the turn of the year the precious metal had cost around 100 dollars less.

The background is the tensions on the Ukrainian-Russian border.

In uncertain times, market participants are increasingly targeting real assets such as gold, while riskier assets such as stocks tend to lose value.

However, the precious metal is being slowed down by rising capital market interest rates in many places, which make interest-free gold appear less lucrative compared to interest-bearing investments.

Added to this is the recent appreciation of the US dollar, which represents an obstacle to demand from countries outside the dollar zone.

Gold is usually traded in US currency.

US stock exchanges again with losses

Investors on the US stock market only partially trusted the signals from Russia regarding a willingness to talk about the Ukraine conflict on Monday.

The

contained some of its losses, but ended trading at 34,566.17 points, half a percent lower than on Friday, which was already very weak.

The market-wide

fell 0.38 percent to 4401 points.

The technology -

, which was recently hit particularly hard, managed a moderate increase of 0.10 percent to 14,268 points.

Oil prices: $100 mark remains within reach

Oil prices eased slightly in early trading on Tuesday.

However, the situation on the crude oil market remains tense.

In the morning, a barrel (159 liters) of North Sea Brent cost US$ 95.93.

That was 55 cents less than the day before.

The price of a barrel of the US West West Texas Intermediate (WTI) variety fell 61 cents to $94.85.

Oil prices continued to rise on Monday, marking their highest level since autumn 2014.

Despite the recent discounts, the mark of 100 US dollars per barrel of crude oil remains within reach.

The main reason for the significant price increases, which have been around 25 percent since the beginning of the year, is the crisis on the Ukrainian-Russian border.

"If there are troop movements, the Brent price will easily jump above the $100 mark," predicted analyst Edward Moya of brokerage house Oanda.

Asian stock markets weaker

The most important stock markets in Asia tended to be weaker on Tuesday.

Uncertainty remains high.

In addition to the Ukraine conflict, high inflation and the prospect of interest rate hikes in the USA continue to weigh on the mood.

In Tokyo, the Nikkei index closed after a weak start to the week with a discount of 0.8 percent.

The

in China's Hong Kong SAR fell 1.3 percent, while China

, which includes the top 300 mainland China companies, rose 0.6 percent.

Bitcoin slightly higher

The world's best-known digital currency Bitcoin is growing again.

On the Bitstamp trading platform, the cyber currency was last listed at around 43,965 US dollars, around 3 percent higher than the previous day.

The cryptocurrency has been under pressure since the beginning of the year.

In November 2021, Bitcoin reached a record high of $69,000.

With news agencies