M-Dax: Rise and fall thanks to Trump
Things are slowly adding up. The DAX has lost more than 1,000 points since its high in early June, ending its second consecutive week of losses. Even an attempted recovery on Friday couldn't change that, likely due in no small part to the big expiration date on the futures exchanges.
This is also called "witching sabbath," which sounds a bit more dramatic than it actually is. Large investors then try to push prices in a direction that fits their previously placed bets. Trading on such days therefore says little about the state of the market. At 23,326 points, the Xetra-DAX entered the weekend a good one percent higher and at an interesting level from a technical perspective – we can look forward to Monday.
The downward slide in stock prices began as a summer correction of a very steep rise. Then came Israel's attack on Iran, resulting in a significant increase in oil prices. This is far from over, especially since Donald Trump has demanded two weeks of consideration before launching his own military strike.
Incidentally, this deadline will end one week before another one we'd almost forgotten: The tariff moratorium expires on July 9, and by then, at least between the US and the EU, there's unlikely to be an agreement. So, tensions are mounting.
Ionos is one of the few larger companies barely affected by these global upheavals. Quite the opposite: Since Donald Trump came to power, advertising itself as the "German Cloud" has gained a whole new level of traction – including on the stock market. Within three months, the internet service provider's share price has nearly doubled, peaking at almost €43 in early June.
The opposite is true for Jenoptik. The technology group is suffering severely from the consequences of the tariffs, as many projects are on hold for its customers in the semiconductor industry. This, too, is having an impact on the share price, and so the companies are swapping places on Monday: Ionos is moving up to the M-DAX, while Jenoptik is moving down to the S-DAX.
Stefan Winter is the senior business editor at RND. He writes weekly about the stock market, financial markets, the rise and fall of share prices—and the companies behind them.
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