The leading index Dax rose by 1.32 percent to 15,154.73 points by the early afternoon after falling by 1.7 percent on Friday due to uncertainties related to the banking crisis and monetary policy. At the beginning of the week, the MDax of medium-sized stock market stocks recorded an increase of 1.20 percent to 26,801.33 points. The Eurozone leading index EuroStoxx 50 went up by one percent.
Sentiment in the German economy improved in March despite the recent turbulence in the banking sector. The Ifo business climate increased surprisingly significantly. It is the fifth increase in the economic barometer in a row. “While the Ifo business climate index is still at levels that are quite consistent with a contraction in the German economy, the good news is that there is no need to fear a significant decline in gross domestic product,” commented Thomas Gitzel, Chief Economist at VP Bank.
The supposed banking crisis has so far only turned out to be a storm in a financial teacup, wrote market observer Andreas Lipkow. However, imponderables in the financial sector in particular often result in noticeable economic cooling tendencies. As a result, the economic prospects in the USA and Europe could cloud over visibly this time as well.
On this side of the Atlantic, relief in the US banking sector spilled over to Europe after a buyer was found for the US state-controlled Silicon Valley Bank after its collapse. The shares of Commerzbank and Deutsche Bank gained four and more than six percent respectively among the best values in the Dax. The price for hedging against payment defaults on Deutsche Bank bonds has recently fallen somewhat.
“Deutsche Bank is not the next Credit Suisse,” said the experts at the analysis firm Kepler Cheuvreux, with a view to the emergency rescue of the Swiss that suddenly became surprisingly necessary. The most pressing concern at the moment is the commitment to financing US commercial real estate. But it was made very transparent and easy to handle.
Analysts praised Heidelberg Materials: The company is one step ahead when it comes to decarbonization in the European building materials industry, wrote Jefferies expert Glynis Johnson. As a result, one should also be able to continue to increase profitability more than others. The share certificates rose by a good three percent.
At the top of the SDax small-cap index, Varta’s shares soared by twelve percent. The recently weakening battery company had agreed with the banks and its majority owner on a far-reaching restructuring. Shares in the Salzgitter steel group were also in high demand, gaining six percent after the annual figures were published. It was said on the market that investors were particularly impressed by an encouraging forecast for the year and a surprisingly high dividend.
The euro last cost 1.0774 US dollars. The European Central Bank set the reference rate at $1.0745 on Friday afternoon.
German government bond prices fell. The current yield, on the other hand, rose to 2.18 percent from 2.02 percent on Friday. The Rex pension index fell by 0.59 percent to 126.82 points. The Bund future lost 0.89 percent to 136.53 points.
Also read: What the slump in bank shares reveals about the state of the market
