ATX at Record High: AT&S Rally Drives Vienna Stock Exchange

AT&S: Rally on Monday, Setback on Tuesday

On Tuesday, however, AT&S shares came under pressure and fell 6.76 percent to 195.80 euros, making them the weakest performer in the ATX. Traders cited profit-taking after the strong previous day. The fundamental assessment of analysts, however, remained positive.

Other stocks also benefited from the positive market environment. Shares of airline caterer DO&CO were among the bigger winners with a gain of 6.9 percent. Shares of the banks Raiffeisen Bank International, BAWAG and Erste Group gained between 1.4 and 2.4 percent. The best performer in the ATX Prime was Zumtobel with a premium of 5.4 percent.

Further Winners and Losers in the ATX

OMV shares, on the other hand, were under pressure, declining 0.8 percent. The background was falling oil prices, which had dampened expectations of imminent interest rate hikes in recent days. Shares of oilfield equipment supplier SBO also lost 1.4 percent. voestalpine shares fell 0.3 percent, even though the company had announced on Tuesday the largest single order in its history for the European Rail Baltica infrastructure project.

voestalpine Secures Billion-Euro Order for Rail Baltica

The framework agreement for Rail Baltica has a volume of around 470 million euros and covers the supply of up to 1,000 high-speed and standard switches including monitoring technology. The Rail Baltica high-performance line is to run between Helsinki and Warsaw.

Positive impulses also came at the beginning of the week from international markets. Traders pointed to a reported framework agreement between the USA and Iran. Wifo chief Gabriel Felbermayr said on Ö1's "Mittagsjournal" that such an agreement could help the economy: „wenn nicht am Freitag eine Enttäuschung kommt, sind das Dinge, die uns konjunkturell und bei der Inflationsbekämpfung sehr helfen würden". However, the effect should not be expected very quickly.

Outlook: Fed Interest Rate Decision and Witching Day in Focus

The experts at Helaba also expressed cautious optimism. They said the central bankers around the new Fed chief Kevin Warsh would probably exercise restraint and thus meet market expectations: „Die Notenbanker rund um den neuen Fed-Chef (Kevin) Warsh werden sich wohl in Zurückhaltung üben und damit den Markterwartungen entsprechen". At the same time, they warned: „Das Abkommen muss erst noch unterzeichnet werden und die wichtigsten und kritischsten Themen darin müssen ebenso erst gelöst werden".

The focus of investors this week is primarily on the US Federal Reserve's interest rate decision on Wednesday. Observers mostly expect the Fed to adopt a wait-and-see stance, especially since the recently fallen oil prices have reduced inflationary pressure. On Friday, a major expiration date – the so-called witching day – is also due on the derivatives exchanges, which can typically lead to increased volatility.