Frankfurt Stock Exchange: Dax continues to recover – Wirecard slumps

Investors on the German stock market remained confident on Tuesday. The leading index Dax continued its strong start to the week and continued to grow.

However, some of the gains crumbled later in the afternoon as the Wall Street index Dow Jones Industrial turned moderately into the loss zone after a friendly start.

The German stock market barometer ended the day up 1.27 percent to 10,795.63 points. Shortly before the US stock market launch, it had climbed to a new recovery high at just under 10,900 points since the low point in the Corona crash in mid-March. The MDax was up 1.03 percent at 22,817.07 points on Tuesday, and the stock markets closed nicely across Europe.

The euro zone’s benchmark EuroStoxx 50 index ended the day up 1.73 percent at 2932.06 points. The main indices in Paris and London were similarly firm. In the US, the Dow oscillated between slight gains and losses at the European close, while tech-heavy Nasdaq exchanges weakened.

In the Dax, Wirecard’s papers once again attracted attention. The hoped-for relief blow from the KPMG special audit of the balance sheet was not carried out. Analysts complained of many unanswered questions and still legal uncertainties. The stock slumped about 26 percent, dissolving much of the hefty recovery gains since the Corona stock market crash.

Lufthansa’s shares fluctuated sharply, eventually rising by 2.1 percent. Possible substantial state aid to the airline, which has been badly affected by the Corona crisis, would not only be viewed positively, the market said. Among other things, it was announced that Lufthansa is also examining insolvency under its own management. As recently as Thursday, the company had admitted that it could no longer save itself from the crisis on its own.

In the MDax, Siltronic’s shares rose by almost 10 percent thanks to solid figures for the first quarter and a pleasing outlook for the current second quarter. In addition, despite the Corona crisis, the wafer manufacturer is sticking to its dividend. Shares of ProSiebenSat.1 were up as much as 13 percent. The market has been referred to speculation about a takeover by major shareholder Mediaset, which already owns 24 percent of the German media company.

On the other hand, Kion’s shares slumped 7.0 percent at the MDax end after a disappointing operating profit in the first quarter of the forklift manufacturer. In view of the almost 17 percent jump in Ceconomy’s share price in the SDax, the market said it was betting that the rules on the closed-end of stores with an area of more than 800 square meters, issued due to the virus crisis, will soon be dropped.

On the German bond market, the Rex bond index fell 0.14 percent to 144.57 points. The yield on circulation rose to minus 0.44 percent from minus 0.47 percent the previous day. The Bund futures rose 0.21 percent to 172.78. The euro was trading at US1.0837 US cents in the early evening. The European Central Bank set the benchmark rate at 1.0877 (Monday: 1.0852) dollars. The dollar thus cost 0.9193 (0.9214) euros.