Patient Dax continues progress on road to recovery
The German stock market saw a mixed performance today, with the DAX gaining 0.5% to 23,718 points by midday. The MDAX, another index, showed a 0.1% gain at 29,764 points.
In the DAX, Heidelberg Materials led the way with a 2.6% gain. US bank Goldman Sachs added it to its coverage and recommended a buy, boosting investor confidence. RWE also rose 2.2% after Bernstein Research upgraded its rating to "Outperform" from "Market Perform".
However, not all sectors were positive. Gold investors cashed in after the precious metal fell by 0.7% to $3,535 per troy ounce, leading to a sell-off in the gold sector.
In the automotive sector, sports car maker Porsche and laboratory supplier Sartorius will be replaced by Scout24 and Gea in the DAX, starting from September 22, 2025. Porsche and Sartorius will move down to the MDAX, while Scout24 and GEA rise to the DAX.
Sanofi's shares plunged by more than 9% following disappointing trial data for its drug candidate Amlitelimab. Meanwhile, Jost shares fell by 9.7% in the SDax due to Peter Moehrle selling half of his stake.
The DAX is close to its 100-day moving average of 23,720 points. Jürgen Molnar, capital market strategist from broker Robomarkets, stated that the DAX still needs to overcome important resistance levels before a positive outlook can be given.
In the travel and tourism sector, British budget airline Jet2 triggered a sell-off with a more cautious outlook for the full year. Shares of Easyjet, IAG, Wizz Air, and Ryanair also fell due to pressure on the sector. Tui shares lost 2.6% due to delayed bookings for the summer and falling prices in the sector.
On the other hand, ProSiebenSat.1's stock rose 3.9% following the end of the takeover offer. ProSiebenSat.1's Italian MFE-Holding now holds a 75.61% stake after the end of the takeover offer.
Gea rose 0.9% in the DAX and will join the index on September 22, 2025. Scout24, operator of an online real estate platform, gained 1.6% in the DAX. Airbus rose 1% and MTU fell 1.9% following a change in favour by Swiss bank UBS.
Teamviewer's stock was burdened by 5.1% due to the complete divestment of a financial investor, Permira. Jochen Stanzl, Chief Market Analyst at CMC Markets, warned that if the labor market data comes in too strong and inflation turns out too hot, the Fed won't be able to switch to a faster pace of rate cuts.
Investors are holding back ahead of the monthly US jobs report on Friday, as it could influence the US Federal Reserve's decision on interest rates.
