German Stock Market Shows Confidence Ahead of Nvidia's Quarterly Figures

Investors in the German stock market have regained hope ahead of the release of the quarterly earnings report from American semiconductor giant Nvidia. The German benchmark index Dax managed a slight gain of 0.29 percent on Wednesday, closing at 17,118.12 points. This result places the index just shy of its all-time high near the 17,200-point mark. In contrast, the MDax, which includes mid-sized companies, had to accept a small decline of 0.17 percent to 25,714.20 points. High expectations are set on Nvidia, which will present its financial figures after the market closes in the USA. Experts view the results of the company as a barometer for the current enthusiasm in the field of artificial intelligence (AI) and related technology values. Analysts from Index Radar emphasize that it is about more than just numbers – Nvidia's forecast is seen as an indication of maintaining the strong momentum currently in the tech sector. Monetary policy will also be in focus as the minutes from the last meeting of the US Federal Reserve will be published in the evening, which may provide insights into the direction and timing of upcoming interest rate cuts. Investors in the German market particularly targeted cyclical values – stocks that are highly dependent on economic development. Automotive stocks such as Mercedes-Benz, BMW, Porsche, and Volkswagen recorded notable price gains of up to 2.4 percent in the Dax. The annual figures from Fresenius also attracted interest, although the shares gave up most of their initial gains after the start and closed with a slight increase of 0.6 percent. Analysts expressed concerns regarding the rather cautious forecasts of the healthcare group for the year 2024. In the biotech sector, a subdued business outlook from Repligen led to losses for Sartorius' preferred shares, which fell by 0.9 percent. Shares of SMA Solar saw a significant reaction, falling by 6.9 percent due to unfavorable signals from the US after competitor SolarEdge dampened expectations with a disappointing outlook. However, there was positive news for Bilfinger, whose shares increased by 4.2 percent following a buy recommendation from the investment bank Kepler Cheuvreux, leading the list of winners in the SDax. Within the European stock market landscape, most markets saw gains. The EuroStoxx 50 increased by 0.32 percent, while the Paris Cac 40 even reached a new record high. In contrast, the FTSE 100 in London closed in the red. In the US, the Dow Jones Industrial last trended slightly weaker, while the tech-heavy Nasdaq 100 had to absorb more significant losses. The European common currency traded in the foreign exchange market at 1.0815 US dollars, after the European Central Bank had previously set the reference rate at 1.0809 dollars. On the bond market, the yield on circulation remained constant at 2.42 percent. The bond index Rex recorded a small gain of 0.03 percent, closing at 125.37 points, while the Bund-Future lost 0.47 percent to 132.48 points.