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Course jump: The Dax gained almost 4 percent on Tuesday.
A so-called short squeeze provides additional buoyancy
Photo: DANIEL ROLAND/ AFP
Price rally on the stock exchanges: On Tuesday, the most important price barometers on the German stock market followed on from the lively start of October with significant gains.
After a dreary November with severe price losses, investors are now assuming that the central bank will slow down its pace of interest rate hikes worldwide and will only follow up with smaller interest rate hikes for the time being.
This has ensured a clear upward trend on the stock exchanges since Monday.
The German leading index Dax gained 3.8 percent to 12,670 points by the end of trading on Xetra (5:30 p.m.) and then continued to expand its gains.
The MDax rose by 3.7 percent to 23,499 points.
The EuroStoxx 50 also rose sharply by 4.3 percent to 3,483 points.
The German stock market is thus awakening to new life after the indices had reached multi-year lows in the previous week.
In the previous week , the
Dax had fallen to 11,862 points, its lowest level since November 2020.
Short squeeze supports prices
Wall Street is currently setting the pace of recovery.
The US indices had also started the new trading month strongly the day before and also increased significantly on Tuesday.
In the US as well as in Europe, a so-called "short squeeze" provided additional impetus: Numerous speculative investors and hedge funds, who have bet on further falling prices, have been faced with increasing losses since Monday, as the stock markets are rising again.
Many therefore liquidate their short position in order to either take profits that have already been made or not to lose even more money in the event of a loss.
Selling a short position means that the uptrend in the market is gaining strength: the "bears" in the market are currently getting out again.
"The German stock market is dominated by the hope that the US Federal Reserve could soon take its foot off the accelerator in the current cycle of interest rate hikes in order to save the US economy from collapsing," wrote analyst Timo Emden of Emden Research.
"Fantasies about lowering interest rates are increasingly attracting price hunters who want to snag their bargains in the face of an increasingly oversold market situation."
It fits into this picture that the central bank in Australia has raised its key interest rate less than expected.
Strongly rising producer prices are not slowing down the Dax
The rapidly rising producer prices in the EU could not slow down the Dax rally on Tuesday: In August, the prices that manufacturers receive for their goods increased by 43.3 percent over the year, according to the Eurostat statistics office.
It is by far the strongest growth since monetary union came into existence.
The previous record was set at 38 percent in the previous month.
Analysts had expected an average rate of 43.1 percent for August.
Producer prices again rose particularly sharply in the energy sector.
Compared to the same month of the previous year, energy prices rose by 116.8 percent, which corresponds to more than doubling.
Compared to the previous month alone, energy was 11.8 percent more expensive.
Producer prices capture producer-level price pressure by reflecting producer selling prices.
The development usually also has an impact on consumer prices.
Tech values in demand
On the German stock market, technology and chip stocks performed well in line with Europe-wide trends.
Infineon
gained 7 percent among the top values in the Dax, for
SAP
it went up by almost 4.5 percent.
Hopes of somewhat less pressure from central banks drove the rate-sensitive sector.
Shares in sporting goods
makers Adidas
and
Puma
each rebounded 6 percent from their recent losses on
Nike 's
disappointing quarterly results .
At the top of the Dax,
Zalando rose
by more than 8 percent.
The shares of the online fashion retailer fell last week to their lowest level since 2014 and remain the biggest loser in the leading index over the year.
RWE's three percent price increase was only enough for a place in the lower middle of the Dax.
The energy supplier, whose shares had benefited from a billion-dollar takeover in the United States the previous day, now wants to bring the phase-out of coal forward by eight years to 2030.
At the same time, two power plant blocks should continue to run until spring 2024, which according to the current legal situation should actually be shut down at the end of the year.
However, there were also losers on the German market.
Rheinmetall
lost
4.5 percent at the end of the MDax.
Stockbrokers attributed this to reports from Australian newspapers that the decision between the Luchs reconnaissance tank and the Korean competitor Redback as part of the "Land 400 Phase 3" armament program was delayed.
Rheinmetall's order target for 2022 probably includes a decent item from Australia, according to the market.
The media stocks
ProSiebenSat.1
and
RTL Group
posted price losses of 1.5 and almost 0.5 percent, respectively.
While ProSiebenSat.1 could not inspire investors with a surprising change in leadership, the announcement by competitor RTL that it would hold a stake in French TV industry colleague M6 was apparently disappointing.
Continued significant gains in the US
US stock markets continued their recovery on Tuesday.
The recent economic slowdown has fueled speculation that the Federal Reserve is slowing its pace of interest rate hikes.
This helped the leading indices
Dow Jones
,
Nasdaq
and
S&P 500
to gain more than 2 percent each.
Surprisingly high quarterly sales from
Rivian
encouraged investors to invest in the electric car maker and its rivals.
Rivian
,
Nikola
,
Nio
and
Lucid
stocks
rose significantly.
Tesla
also
recovered from the slump after disappointing sales figures on Monday and gained a good 4 percent.
U-turn in London helps Asian markets gain
Asia's major stock markets also staged a vigorous recovery on Tuesday.
Hopes that weak economic data would reduce the urgency of more aggressive interest rate hikes by the US Federal Reserve also spilled over into the Far East from US trading.
However, trading in China continued to be suspended and the stock exchange in Hong Kong has now also paused.
On the stock exchanges that were open, the Japanese Nikkei index made a positive impression with a price increase of 2.96 percent to 26,992 points.
He continued his already positive start to the week.
Bitcoin surges back above $20,000
The digital currency Bitcoin was last listed on the Bitstamp trading platform at 20,068 US dollars, around 3 percent higher than the previous day.
In November last year, the crypto currency reached a record high of 69,000 US dollars.
Oil prices
rise significantly
Oil prices on Tuesday matched their previous day's gains.
In the evening, a barrel (159 liters) of North Sea Brent cost $92.03.
That was 3.6 percent more than on Monday.
The price for a barrel of the US West Texas Intermediate (WTI) variety also rose significantly on the day before Opec+ deliberations on funding policy.
As on the previous day, oil prices are being supported by reports of an imminent production cut by the OPEC+ oil network.
The organization from around 20 countries is meeting in Vienna this Wednesday to discuss its production policy.
There is speculation that production could fall by over a million barrels a day.
The background to the debate on cuts is the sharp drop in crude oil prices over the past few months due to fears of a recession, which is to be countered with a reduced supply.
However, analysts point out that the oil alliance led by Saudi Arabia and Russia has long had problems meeting its agreed production volume.
Conversely, a production cut agreed on paper could turn out to be less in reality, it is argued.
Only recently did Opec+ raise its agreed subsidy back to the pre-corona level after it had been sharply reduced during the pandemic due to demand.
With news agencies
