The DAX 40 index ended the week on a positive note and gained more than 2%. Overall, the European markets celebrated the news of rate hikes. The European Central Bank and Bank of England hiked their interest rates by 50 basis points to 2.5% and 4%, respectively.
Following the announcement, the DAX 40 rose 2.2% to its highest level in 11 months. The index crossed the mark of 15,500. The experts suggest positive weeks ahead in the range of 15,000 and 15,800.
This week started in the red zone, and the index was down by 0.6% on Monday. The week started with the news of German industrial orders, which increased by 3.2% in December 2022. This is a significant improvement over the 4.4% drop in the previous months.
On Tuesday, the weak industrial production data from Germany pulled the numbers down for European markets. The production numbers were down by 3.1% in December, against the expected hit of 0.7%.
Investors await the inflation data for January 2023, which is expected to be released tomorrow.
Top Performing Stocks
Most of the players on the DAX have been trading in the positive zone since the start of 2023.
Infineon Technologies AG (DE:IFX)
Infineon Technologies is a leading semiconductor manufacturing company in Germany. The stock has gained around 25% YTD. IFX stock enjoys a BUY rating from 14 analysts on TipRanks. The average forecasted target price of €42.45 shows an upside of 17.7%.
Last week, Deutsche Bank analyst Johannes Schaller CFA reiterated his BUY rating on the stock and raised his target price from €42 to €44, indicating an upside of 22%.
Vonovia (DE:VNA)
Vonovia is a residential real estate company in Germany, with seven Buy ratings on TipRanks. The stock has gained around 14% YTD after having fallen by 42% in the last year.
Analyst Carola Holtz from Kepler Capital has maintained a Buy rating on Vonovia in the last week. His target price of €40.0 has a huge upside of 52% on the current price level of €26.2.
Covestro AG (DE:1COV)
Raw materials manufacturer Covestro’s stock grew by 11% YTD. According to TipRanks’ consensus forecast, the stock has a Moderate Buy rating with an average target price of €43.69.
Last week, Christian Faitz of Kepler Capital reiterated his BUY rating on Covestro at a target price of €47.0. This indicates an upside potential of 10.12%.
