FRANKFURT (dpa-AFX) – The tensions between the USA and China over Taiwan depressed the mood and prices on the German stock market on Tuesday. The Dax (DAX 40) fell in early trading by 0.67 percent to 13,389.21 points. After a strong month on the stock market in July, the leading index had stagnated on the previous day.
In Taiwan, the chairwoman of the US House of Representatives, Nancy Pelosi, is expected according to information from the parliament in Taipei in the democratic island republic. It would be the highest-ranking visit by a US politician to Taiwan, which Beijing’s communist leadership sees as part of the People’s Republic of China, in a quarter of a century. With the visit to Taipei, Pelosi would ignore warnings from Beijing, which also threatened possible military countermeasures.
The MDAX of medium-sized companies lost 0.69 percent to 27,238.14 points. The leading eurozone index, the EuroStoxx 50 (EURO STOXX 50), was down 0.7 percent.
“The possible visit (Pelosis) drew a strong response from China, including threats of retaliation,” wrote analyst Sheila Kahyaoglu of US Bank Jefferies. Strategist Jim Reid of Deutsche Bank warned: “You can expect reactions from China, the markets should be nervous”.
The quarterly reports continue to move the prices of the individual values. Despite a higher sales forecast from Symrise for this year, shares in the fragrance and flavorings manufacturer fell 2.3 percent. Baader Bank analyst Andreas von Arx noted that operational cash flow development was below expectations. Overall, however, he praised the group’s quarterly figures.
The badly battered Covestro shares (Covestro) rose by 1.1 percent according to detailed quarterly figures. The individual divisions of the plastics group developed as expected or better, wrote analyst Chris Counihan from Jefferies.
Siemens Energy (Siemens Energy) fell 2.6 percent after wind power subsidiary Siemens Gamesa (Siemens Gamesa Renewable Energy SA) again lowered its earnings forecast.
Delivery Hero shares benefited from a buy recommendation from JPMorgan with a premium of 1.2 percent. The shares of the plant manufacturer KRONES rose after optimistic statements about profitability by 1.9 percent. Bankhaus Metzler advised to buy here./bek/mis