Patient Dax continues on the path to healing
The Dax, Germany's blue-chip index, is maintaining a steady pace, with a current standing of around 23,720 points as of midday. The index is close to its 100-day moving average, which was breached on Tuesday.
One of the notable events today is the potential restructuring of ProSiebenSat.1 TV group. MFE-Holding, the Italian majority shareholder, now holds a clear majority and can soon implement the planned restructuring, leading to a 3.9% rise in ProSiebenSat.1's share price.
Investors are exhibiting caution ahead of the US monthly jobs report due on Friday. This report could significantly influence the US Federal Reserve's decision on interest rates in mid-September. A key indication will be provided later today by the report from private payrolls processor ADP.
Jochen Stanzl, Chief Market Analyst at CMC Markets, has warned that if the labor market data comes in too strong and inflation proves too hot next week, the Fed might not be able to switch to a faster pace of rate cuts.
Travel stocks are under pressure across Europe, with British budget airline Jet2 triggering a sharp decline in its share price following a more cautious outlook for the year. This temporary fall nearly reached a quarter in London. Shares of Easyjet, IAG (the parent company of British Airways), Wizz Air, and Ryanair also declined, along with Tui's shares losing 2.6%.
On the positive side, stocks of Scout24, an online real estate platform operator, and Gea, a technology group, have gained 1.6% and 0.9% respectively, and will join the Dax, replacing the stocks of Porsche and Sartorius.
RWE rose 2.2% after Bernstein Research upgraded its rating to 'outperform', citing attractive options for share repurchases and improving industry conditions. Heidelberg Materials led the Dax with a 2.6% gain, benefiting from being added to Goldman Sachs' investment universe and receiving a 'buy' recommendation.
Gold investors have cashed in after the recent record run, with the precious metal falling by 0.7% to $3,535 per troy ounce. However, Sanofi's shares plunged by more than 9% following disappointing trial data for its drug candidate Amlitelimab.
The Dax must overcome several resistance points, including 24,000 points, to continue its recovery. The MDax, another German stock market index, is up 0.1% at 29,764 points.
The departure of some stocks and the arrival of new, strong ones, such as Scout24 and Gea, has been commented on by Jochen Stanzl, who stated that the Dax is keeping up with the times. On September 22, 2025, GEA Group and Scout24 will be added to the DAX, replacing Porsche and Sartorius, which will move to the MDAX. Permira, a financial investor, fully divesting from the shares of Teamviewer, weighed on Teamviewer's stock by 5.1%.
As the market continues to evolve, investors and analysts will closely watch these developments in the Dax and other indices.
