Renk with a strong recovery, Rheinmetall once again sets stock market records, Tesla can hold its own and Mercedes-Benz also shines with a price jump!

The recovery was not long in coming

Before the weekend, interest rate concerns were still weighing on the mood for shareholders, and poor guidance from Wall Street also led to a sharp drop in prices in this country as well. At the beginning of the new week, however, the bulls return impressively and hope that the ECB will make progress has led to a significant price gain, at least for the DAX.

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A rapid change in sentiment was seen, among other things, in the shares of Color (DE000COLOR730), which jumped by 10.2 percent and was able to increase to 33.13 euros. The words of caution from analysts at Oddo BHF, who had withdrawn their buy recommendation, appear to have faded again. The analysts simply give Renk shares a 12-month target price of EUR 29.50.

However, future prospects in the defense sector seem too attractive for investors to ignore. There is currently no end to the arms race and only last week Renk was able to report on the new order. From a chart perspective, the upward trend was reconfirmed.

Rheinmetall cannot be discounted

Rheinmetall (DE0007030009) he didn’t even allow himself to feel weak and was happy about yesterday’s worst situation. At first glance, the 4.4 percent gain seems more impressive than that of Renk’s peers. Since there was no visible kink in the course before, it was enough for a new course record. The title rose to 560.60 euros on Monday. A year ago, shares were trading for less than half that.

Stock traders are undeterred by the friction surrounding the future of the Leopard main battle tank. Rheinmetall recently introduced a new Leopard model, but according to media reports, the French partners would prefer a locally produced model. The confidence is understandable, because even if Rheinmetall had not been awarded the contract in this case, the company would have remained on the growth path.

Will Tesla turn the corner?

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Investors of Tesla (US88160R1014) I haven’t had much to smile about for a while, but buyers don’t want to give up without a fight. Those prices recently came under intense pressure after reports emerged about the possible demise of the Model 2. CEO Elon Musk quickly denied this and then extended the announcement date for the robotic arm. While it’s beyond doubt that Tesla has advanced enough in autonomous driving to send robotaxis to the streets on a large scale, that seems to be enough for stock market investors to rebound.

Tesla shares rose 4.9 percent to $172.98 on Monday, successfully defending some technical chart support. However, there is still a price loss of around 30 percent since the beginning of the year. Shareholders still can’t quite shake off the negative headlines of the past few weeks.

Mercedes-Benz looking for a record?

A better picture can be seen in the chart Mercedes-Benz (DE0007100000), where the high from last year was jumped yesterday. The new high of 77.45 euros could not be sustained in later trade. With a closing price of 76.61 euros, it was still enough for a daily increase of 2.5 percent and the positive trend continued.

Not much separates the title from the new record levels. The highest price is currently 79.76 euros and although not everything is going well for Mercedes-Bent at the moment, there are still high expectations among investors. Many observers are betting that the interest rate cut will boost the economy in the second half of the year and that Mercedes’ sales figures will also improve again. One can only hope that the prediction will eventually be correct.

It is not broken

Warning voices continue to make themselves felt, warning of important corrections in the current market rally. But so far it seems as if the bulls only see taking any advantage as an opportunity to rally. The uptrend in the stock market has not yet been broken. What happens next largely depends on the development of interest rates. Since inflation has fallen faster in Europe than abroad, it actually seems possible that the ECB will cut interest rates before the Fed. However, if this does not happen, the next disappointment will be inevitable. It always remains exciting.

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09.04.2024 – Andreas Göttling-Daxenbichler

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