After yesterday’s huge decline (Actually the biggest in the last 3 weeks), German stocks have went ahead today. The measure of economic confidence for the Euro region increased more than the initial forecast and this helped the German stocks big time. The benchmark gauge of Germany, the DAX jumped up by 1% and is currently at 7675.83. Yesterday, it declined by 2.3% marking its biggest since 4th February. The broader HDAX Index, on the other hand, increased by 1.1% on today.
Benoit Peloille, who works as the Equity Market Strategist for Natixis stated that the election results of Italy are currently a big reason of headache for investors as many fear that the country may head back towards the zone of blocking the reforms that were announced a few month ago. However, Benoit added that this should not bring decline in stocks as that is still the only asset class which is yet to benefit due to abundance of liquidity. Stocks, according to him, stay fundamentally attractive for the investors.
An index that measures the executive and consumer sentiment in Europe is currently at 91.1 for the month of February. In January, the same was at 89.5. The statistics was released by the European Commission. Many economists predicted it to increase to 89.9 in February, but the actual results turned out to be better.
Among companies, MorphoSys AG declined by 6.4% and is currently at 31.01 Euros. The biotech company has recently been cut to hold from its earlier rating of buy at the Commerzbank AG. Kabel Deutschland also plummeted by 3.7% and each share is priced at 67.03 Euros now. Incidentally, its shares saw big highs after reports came out that Vodafone has offered it a takeover deal. However, as Vodafone announced that the plan has been put on hold, it seems the stock prices of Kabel have been affected big time. On the other hand, the 2nd largest steelmaker of Germany, Salzgitter AG jumped up by 6.1%, taking each of its share prices to 37.17 Euros. The company’s credit rating was increased by JPMorgan Chase & Co. to overweight from buy. The forecasted pre-tax profit of the company has been estimated at lower double digit million Euro range for this year and this news helped Salzgitter big time to jump ahead in the stock market.