Death of the Queen and ECB interest rate hike don’t bother the stock exchanges

Death of the Queen and ECB interest rate hike don't bother the stock exchanges

AStatus and stock exchanges are two different things. If you didn’t know that yet, you could see it again this week. The Queen dies and what are the stockbrokers doing in the City of London? Keep trading stocks as if nothing happened. At least they could have shown a reasonable discount. A black Friday would have been a sign. But what does the FTSE 100 stock index do? Lies cheerfully in the plus. More than 1.5 percent even. A thoroughly cheerful trading day. Just a handful of the 100 most valuable companies on London stock exchange maintained proper decency and fell in market value. The provider of “privacy products” Avast, for example, who wants to ensure digital security on the Internet. On the other hand, the fashion retailer Asos showed a clear price increase. It is not known whether this is at least due to the high demand for mourning clothing.

But what the protocol for the death of queen provides: no stock exchange trading on the day of the funeral and none on the day of the coronation of the new king. That was no longer clear to many, after all, the last death of a British throne holder was 70 years ago. Business associations had little choice but to calculate what the fun would cost: it was six billion pounds in sales due to idle factories and supermarket checkouts at the wedding of Prince William, the heir to the throne. If two public holidays are announced at the same time, it almost borders on a deliberate plunge into recession. But we already had that with decency.

The Börsianer was missing earlier in the week. ECB President wrestled on Thursday Christine Lagarde their central bank council a historically large interest rate hike and what are the stock exchanges doing? Nothing. Complete ignorance. It was only when Lagarde later pointed to an economically difficult winter that the stock exchanges twitched briefly before remembering that they had already priced this in anyway. The Dax change was 0.09 percent at the end of the second and so far largest interest rate turnaround day in 2022. But maybe there is more to come, because the inflation drivers heating oil, diesel and gas have so far hardly been impressed by the diligent efforts of the central banks and remain expensive .

Dax relegated with profits

The importance of Deutsche Börse was also trimmed down a bit this week. On Monday evening she announced the Dax kick-out of the cooking box supplier Hello Fresh and what are the brokers doing? Buy the stock like mad. Yes, they don’t even have that anymore dax holy? The biggest winner in the index, of all things, was the declared relegation team – in a neck-and-neck race with the over-profit tax candidate RWE. The curved control club does not seem to impress stockbrokers either.

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