Struggling to Maintain Balance amidst U.S. Interest Rate Announcement Faces Dax
The German stock market saw a mixed performance on Tuesday, with some companies experiencing significant gains while others faced losses. In the MDax, Puma ended the day with a notable gain of over 7 percent, making it one of the top performers. However, Wacker Chemie was among the biggest losers, with a 2.3 percent drop. Schaeffler continued its strong performance, gaining 4.4 percent and taking the top spot in the SDax. Elsewhere in the MDax, Formycon gained 2.1 percent, following an announcement of another distribution partnership for its biosimilar to Bayer's eye medication Eylea. Heavyweight SAP started a recovery attempt with a gain of three percent after a two-month decline, as Jefferies analyst Charles Brennan expects a turnaround in the shares of the tech giant. Defense stocks were in demand on the German stock market, with Rheinmetall rising by 1.3 percent in the Dax, while Hensoldt and Renk gained 2.8 and 0.9 percent respectively in the MDax. The Eurozone benchmark index EuroStoxx 50 was stagnant, reflecting a cautious approach by investors. The MDax of mid-sized companies ended the day with a gain of 0.37 percent at 30,210.27 points. Economist Anthony Willis from Columbia Threadneedle Investments has expressed doubt about the market's expectation of a 1.4-point cut over the next 12 months. While a 0.5-point cut had been discussed, it has become less likely following the US retail sales figures. A majority now expects a cut of 0.25 percentage points. Recently, there has been a media report suggesting that China is prohibiting its tech companies from purchasing certain AI chips from US chipmaker Nvidia. However, no new information about this prohibition or its potential impact on the companies involved has been provided. US bank Morgan Stanley has downgraded Wacker Chemie's shares and has an 'underweight' rating, while two brokerages, Oddo BHF and Kepler Cheuvreux, have downgraded ProSiebenSat.1. Financial investors are also showing interest in the stake held by major shareholder Pinault in Puma. ProSiebenSat.1 experienced a 4.9 percent drop, continuing its steep decline. No new information about the performance of other companies mentioned, such as SAP, or analyst Charles Brennan's expectations for SAP's shares, was provided in this paragraph.
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