After its high losses last week, the Dax started the new week with a small profit.

The new index member Beiersdorf also contributed to this: The share price of the consumer goods manufacturer (Nivea, Labello, 8x4) increased by 1.8 percent and was one of the frontrunners in the share index.

After four hours of stock trading in Frankfurt, the Dax was at 13,190 points, 0.5 percent higher than at the end of trading on Friday.

Hanno Mussler

Editor in Business.

  • Follow I follow

Last week, the 40 most important German stocks, measured by the Dax, lost a strong 4.6 percent after the central banks in the USA, Switzerland and Great Britain increased their key interest rates and the European Central Bank held a special meeting because of the rising yields, especially on government bonds from southern European countries convened

Runaway inflation and the central banks' interest rate hikes that have been required as a result are fueling investor concerns around the world about an economic downturn.

On Monday, for example, the Nikkei index in Japan lost 0.7 percent to 25,771 points.

In Europe, other topics initially dominated at the beginning of the new week, before the Ifo business climate is expected to be weaker on Friday after the recovery in May.

On Monday, market participants looked to France, for example, where Ensemble, the party of President Emmanuel Macron, who was re-elected just a few weeks ago, lost 30 percent of its seats and thus the majority in parliament.

The French stock index CAC 40 also swung back and forth between plus and minus and, unlike most other European stock indices, did not initially find a clear direction on Monday.

Holger Schmieding, the chief economist at Berenberg Bank, spoke of an unusual outcome for France in the parliamentary elections.

For the first time, a recently elected president did not receive a majority,

In France, Schmieding expects Macron's party to work together on a case-by-case basis with the right-wing Les Republicans (LR) and other "moderates".

The search for a compromise for Macron is becoming more difficult.

However, Macron's reforms would probably not be reversed either.

Schmieding is therefore sticking to his long-term forecast that France will be the most dynamic economy in the EU in the next few years.

This year, the Dax and CAC-40 share indices are almost the same, with a decline of 17 and 18 percent since the beginning of 2022.

Ten-year Bunds yielded 1.7 percent on Monday, while France currently has to offer 2.5 percent for a ten-year bond.

On Friday, the French government bond yielded significantly lower at 2.2 percent.

Overall, price movements on the European stock exchanges remained within narrow limits on Monday, mainly because the American stock exchanges remain closed for the Juneteenth holiday.

This holiday, which commemorates the liberation of African Americans from slavery, will mark only the second federal celebration in the United States in 2022.

On Friday, the American stock exchanges had calmed down after a turbulent week.

The Dow Jones index of standard values ​​closed 0.1 percent lower at 29,888 points and ended a week below 30,000 points for the first time since January 2021.

The tech-heavy Nasdaq, on the other hand, advanced 1.4 percent to 10,798 points.

Nevertheless, the hectic stock market phase may only be interrupted, but not over yet.

Therefore, some stockbrokers in Frankfurt were happy about the return of the Beiersdorf share to the Dax because it is considered a stabilizing element.

In fact: If Beiersdorf had also been in the Dax in the past six months, the share would have supported the Dax, because it almost held its value during this period.

This would make it the sixth best value in the Dax behind leaders Bayer (plus 35 percent), Deutsche Telekom, Deutsche Börse, RWE and MTU.

Of the 30 analysts who, according to Bloomberg, regularly form an opinion on Beiersdorf's shares, only a slim majority of 17 currently recommend buying the shares.

The average price target of these analysts for the next twelve months is around 103 euros,

The food delivery service Delivery Hero had to make room for Beiersdorf in the Dax.

Its share has been relegated to the M-Dax.

Delivery Hero has lost 61 percent in value over the past six months.

The operator of wind and solar parks Encavis, which was previously included in the S-Dax, will also be included in the M-Dax, swapping places with the financial service provider Hypoport.

In addition, Nordex had to vacate its place in the S-Dax and Tec-Dax.

The wind turbine manufacturer submitted its quarterly report too late, as Deutsche Börse complained.

SMA Solar is moving into the Tec-Dax for Nordex, and the specialty pharmaceutical company Medios has been in the S-Dax since Monday.