German stock market closes almost unchanged on Wednesday.
The Dax index was calculated at 20,243 points at the close of trading, a minimal minus compared to the previous day’s close. Infineon, Commerzbank, and Daimler Truck led the stock list just before the close of trading, while Symrise, Hannover Rück, and Beiersdorf ended at the top.
Wednesday was dominated by the upcoming Fed decision and news of a potential increase in Unicredit’s stake in Commerzbank to 28 percent. “This brings the Italians closer to their goal of acquiring a 29.9 percent stake, a huge step forward” said Konstantin Oldenburger, a market analyst at CMC Markets.
“The calm and resolute approach of UniCredit CEO Andrea Orcel in pushing forward the takeover of Commerzbank, despite nearly the entire political and economic establishment in Germany being against him, is a testament to foresight and planning” Oldenburger said. His strongest argument for a merger is the development of Commerzbank itself. “The Bundesbank as a major shareholder has not done anything more in the 15 years since the financial crisis to significantly increase the stock value and thus guarantee the survival of the bank as an independent institution” he said.
“Ultimately, a quick takeover is unlikely to be probable in the face of the renewed political resistance” the analyst said. “It will likely be a slow takeover by the back door without much noise.” Unicredit sees a greater value in Commerzbank, so the acquired stake could be sold with a huge profit if the stock price rises further, if the resistance becomes too big. “A complete takeover will only be possible when Commerzbank has weaker operational years and has to admit that it cannot compete alone” he said.
The European common currency was slightly weaker in the afternoon: one euro cost 1.0476 US dollars, and one dollar was worth 0.9546 euros.
Meanwhile, the oil price rose significantly: a barrel of North Sea Brent oil cost 74.14 US dollars at around 5 pm German time, an increase of 95 cents or 1.3 percent from the previous day’s close.