Frankfurt am Main – Pooh! It starts towards the weekend with a big loss for the Dax investors.
On Thursday, gas supply fears and a weakening economy led to significant losses on the German stock market. The Dax slipped 1.76% to 12,912.59 points, falling to its lowest level since the beginning of March.
MDax fell 2.74% to 26,499.68 points. The moderate gains on the US stock exchanges also provided no benefit.
In Europe, sentiment data from euro-region companies weighed on investor sentiment in Europe on Thursday. S&P Global’s Purchasing Managers Index fell to its lowest level in nearly a year and a half in June and even more than analysts expected. “The data is disappointing across the board and the unfavorable framework conditions due to high prices, especially for commodities and intermediates, as well as supply bottlenecks, staff shortages and rising interest rates are clouding the outlook more clearly. than before, “commented Helaba analyst Ralf Runde. The day before, Fed Chairman Jerome Powell hadn’t ruled out a recession in the United States.
As for individual stocks, banks in particular have been under pressure. As the weakest Dax value, Deutsche Bank lost a whopping 12.2% and fell to its lowest level since the beginning of March. In the MDax, Commerzbank documents slipped 11.8%. The industry is concerned that individuals and businesses will struggle to repay loans in the event of a recession. Financial institutions also performed the worst on the European scene.
Utilities, on the other hand, took the top spot, which RWE benefited from on the German market. Stocks in the energy group rose 0.6% in the weak Dax. RWE is seen as a beneficiary of the energy crisis because the group focuses on renewable energy and keeps lignite-fired power plants on standby for emergencies. On the other hand, things went badly for the power plant operator Uniper, the largest German importer of Russian gas. Its documents fell 6.3% due to the gas alert level declared by the federal government.
Not only is energy scarce, but food too. The debate on biofuels right now is not letting investors go: Verbio’s papers hit it hard with a nearly 20 percent slump after a media report that several countries within the G7 group are pushing for the waiver of the regulations on temporary use.
Otherwise, the focus was mainly on analyst assessments, which concerned second- and third-tier companies. Aroundtown was downgraded to “underweight” by JPMorgan, which weighed on the stock by 6.6%. An analyst Richard Schramm was more cautious about the 5.6% lighter Rheinmetall shares after a strong run.
On the European level, the EuroStoxx 50 lost 0.8% to 3436.29 points. The major indices in Paris and London also suffered losses of up to 1%. In New York, the Dow Jones Industrial was just downhill in the late afternoon.
The last euro cost 1.0508 US dollars. The European Central Bank had set the reference rate at 1.0493 (Wednesday: 1.0521) dollars.
German Bund prices rose sharply on Thursday. Conversely, the current yield fell to 1.36% from 1.60% the previous day. The Rex bond index rose 1.16% to 133.05 points, while the Bund futures rose 1.19% to 145.08 points.