European, US Stocks Mixed; Steel Shares Soar on EU Policy Shift
European and US stock markets saw mixed performance today. The MDax rose by 0.68 percent to 30,942 points, while the Euro Stoxx 50 index slipped slightly to 5,643 points. Meanwhile, the S&P 500 and Nasdaq indices reached record highs in the US, despite the ongoing government shutdown.
The resilience of the US stock market during the shutdown is attributed to expectations of further monetary easing by the Federal Reserve and the robust state of the US economy. However, the partial government shutdown has resulted in the delay of the September jobs report and no data release from government agencies until a political agreement is reached.
In Europe, steel stocks remained in demand. Analyst Tristan Gresser from Exane BNP Paribas upgraded the sector outlook, noting a fundamental change in EU protectionist policies benefiting the sector. This positive view influenced companies like Salzgitter, Thyssenkrupp, ArcelorMittal, and SSAB. Salzgitter's rating was upgraded from 'underperform' to 'outperform', making it the top performer in the SDax index with a nearly seven percent gain. Thyssenkrupp led the MDax with a gain of over six percent.
On the other hand, Ionos shares were the worst performer in the MDax, falling by 3.3 percent due to profit-taking and AI competition risks highlighted by analyst Ines Mao from Exane BNP Paribas. Hochtief shares hit a record high and gained 2.6 percent after securing a contract from the US for a closed stadium in Ohio.
The Dax is indicating a gain of 2.6 percent, keeping its current record high within reach. Despite the mixed performance, the European stock market remains optimistic, particularly in the steel sector, while the US market continues to show resilience during the government shutdown.
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