FRANKFURT (dpa-AFX) – Signals from Russia’s President Vladimir Putin to continue negotiations with the West in the Ukraine conflict somewhat limited the losses on the stock market on Monday afternoon. The Dax (DAX 40) was 1.96 percent lower at 15,123 points after falling well below the 15,000 mark in the morning due to fears of an imminent war in Eastern Europe with 14,844 points.
The geopolitical escalation happened at the worst possible time in the midst of the mixed situation consisting of concerns about price increases, fear of interest rates and fears about the economy, said market expert Andreas Lipkow from Comdirect. However, the signs that the Russian President is willing to engage in further discussions with representatives of NATO and the USA have now eased the selling pressure.
The MDAX of medium-sized stocks reduced its loss to 2.15 percent at 32,684 points. The leading barometer for the eurozone, the EuroStoxx 50 (EURO STOXX 50), posted a discount of around 2.1 percent. Economic and company news move little at the start of the week. In any case, the reporting season is a little quieter this week.
Financials were among the biggest losers at the start of the week. Deutsche Bank and Munich Re (Munich Reinsurance Company) each lost more than three percent. Increasing geopolitical tensions blamed Brsians for the losses, as did the somewhat dwindling imagination of interest rates rising in the euro zone very soon.
After their recent good run thanks to the prospect of increasing summer bookings, Lufthansa shares fell by three and a half percent. The shares of the airport operator Fraport went down by three percent. At the beginning of the week, concerns grew that the escalating Ukraine conflict would result in new travel restrictions.
Cyclical industrial stocks also lost significantly in view of the economic slowdown associated with a possible war in Eastern Europe. In the Dax, the papers of the car companies were very weak. In the MDax, thyssenkrupp fell by more than five and a half percent.
DEUTZ investors in the SDAX small-cap index reacted with displeasure to the news that CEO Frank Hiller had been unanimously dismissed from the board by the supervisory board. The background to this are differences about how to deal with the requirements for more women on executive boards. Deutz recently lost almost six percent. The shares of Verbio (VERBIO Vereinigte BioEnergie) stood out at the top of the SDax with a plus of 2.3 percent. A positive analyst comment supported the price.
The euro gave way noticeably. In the early afternoon, the common currency cost 1.1318 US dollars. The European Central Bank (ECB) set the reference rate significantly higher on Friday at $1.1417.
On the bond market, the current yield fell from 0.15 percent on Friday to 0.08 percent. The Rex bond index (REX overall price index) rose by 0.29 percent to 141.46 points. The Bund future recently lost 0.39 percent to 165.59 points./ajx/jha/
— By Achim Jngling, dpa-AFX —