Frankfurt Stock Exchange: Dax defies the shift to the right – Handelsblatt

Exchange at noon Dax over 10,000 points: AFD-Win let the market (first) cold

Frankfurt the interest rate decision by the European Central Bank thank the Dax on Monday for a short time again climbed 10,000 points. Investors were also apparently so pleased that they return mail took profits – and the leading index fell below the mark. Nevertheless, the shares set on Monday continued its growth trend of the previous week, had, increasingly used on Friday, one day after the ECB decision. With an increase of 1.4 percent, or 141 points growth of the German index may again sharply down on 9972 meter until noon. Apart from the titles of Thyssen-Krupp record every 30 shares in the index in positive territory. Benefit can about the pharmaceutical company Fresenius Medical Care and Merck (both 2.4 percent). But the carmaker lay – both Daimler (+1.3 percent) and Volkswagen (+2.1 percent)

Jochen Stanzl, analyst at online broker CMC Markets, believes in further upside.. In his opinion, the Dax could rise even to 10,500 points this week. “What is new in this market situation, however, that gold rises in unison with the Dax. That was no longer so since, 2013. Gold was sold, shares preferred. In February but streamed over seven billion dollars in physically backed gold ETFs. This is a record figure, showing that investors start alongside equities and to invest in gold, “analyzes punched. The price for one troy ounce (31.1 grams) of gold rises on Monday by 0.6 percent to $ 1,255.

Reactions to the ECB decision

• ” the ECB today launched again a comprehensive package of measures on the road and continues its increasingly expansionary. Thus, the interest rates have been withdrawn and expanded the QE. We expect that a shift away from this path – at least until further notice – not in sight “

• “16″

  “doctor Draghi has increased the dose significantly. As feared by us, it has the monetary policy of the ECB unfortunately clearly relaxed than most had expected. This monetary policy is unlikely to arrive in the real economy. Because the side effects are massive. Productivity growth declines because unprofitable investments because of low interest rates seem attractive. It increases the risk that there is overheating in the real estate market Germany. In addition, the incentive for euro area countries is lowered to enforce the necessary reforms. All in all deteriorated this loose monetary policy in the long term the environment for business, so they already hold back today. The medicine will not work, even when increasing the dose. “

• “The ECB decision means a surprisingly massive expansion of monetary policy. However, it also underscores the concern of the ECB of weakening European economy. “

• ” It is completely unnecessary, that the European Central Bank (ECB) has the money supply even more psyched today. The Fed overstates the risks of deflation. The money market in the euro area is shut down virtually through the bank’s policy. Economic reform and restructuring of bank balance sheets are abducted. But in all these areas, the ECB has today once again upped the ante a shovel. “

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• ” The ECB accelerated its monetary odyssey. Today’s rate decision of the ECB reinforced the downward spiral for savers. Long-term retirement savings concepts are as devalued as interest-related institutions are pushed into riskier businesses. It is absolutely unnecessary to compel the German banking industry to broader lending. “

• ” It is a more massive monetary easing. Given the past experience with QE (monetary easing) I think it is unlikely that the expansion of bond purchases will increase inflation sustainably. The market for corporate bonds is too small as that of their inclusion a big effect is likely to arise in Europe. At the same time sets the further reduction of deposit rates bank earnings even more pressure.

  I keep instruments such as the long-term credit lines (TLTROs) that attach directly to the lending, rather than establishing the additional purchase of bonds. Here too, however, the effectiveness depends on whether there is a demand for credit that is satisfying. “

• “The ECB has maneuvered itself even deeper into the dead end. With great concern provides the insurance industry that the central bank has its already extremely expansionary monetary policy even further significantly loosened. More and more signs indicate that these monetary incentives do not achieve their goal. Particularly evident was the year to date in the stock markets or the euro exchange rate, where losses or an appreciation in stark contrast to the attitude of the monetary policy were

  Worse. Meanwhile, even feared, that this unorthodox monetary policy has the opposite effect of what is actually intended – namely growth and higher inflation. Therefore, the Fed is running increasingly in danger of being overtaken by the risks and side effects of their actions. We reiterate our call strongly on ECB President Mario Draghi to rethink the monetary policy strategy in the euro area in the interests of economy and households. “

Looking at the next few days the issued motto on the markets seems simple: After the ECB before the Fed. Also this week are likely to focus monetary policy conversations worry among stockbrokers and equity-market movement. After all, is related to the interest rate decision by the US Federal Reserve on Wednesday night, the next highlight in the schedule.

Multiple investors have responded earlier this year to political events. In particular on reports from China, whose growth will be this year probably again weaker, was heard particularly accurate. This is not least about how the country wants to rebuild its economy. Nevertheless, market players closer political events such as the parliamentary elections seem to worry less, although they reflect as yesterday a political change of mood in the country

topic:. MDAX, TecDAX, SDAX

the investors seem instantaneously already busy trying to digest the roller coaster ride of around 500 points in the Dax in response to recent action by the European Central Bank. On Friday, the Dax rose more than three percent, closing at 9831 points. He wrote about the same level of the previous week, which he finished with 9824 points.