FRANKFURT (dpa-AFX) – The fear of increasing geopolitical tensions and rising interest rates spoiled the start of the week for investors on the German stock market. The Dax (DAX 40) extended its significant initial losses over the course of the day and was down 2.61 percent in the afternoon at 15,197.27 points. The leading German index had already lost almost 2 percent on Friday due to interest rate fears. The MDAX lost 3.57 percent on Monday to 32,440.83 points.
The looming military conflict between Russia and Ukraine is also becoming more and more of a burden for the markets. In the face of massive tensions, the US State Department has meanwhile ordered the families of diplomats to leave the US embassy in Kiev. The British Embassy also reduced its staff. “For the stock markets, an escalation remains a risk factor that must be taken seriously,” warned market expert Timo Emden from Emden Research.
In the new stock market week, investors should also pay attention to the results of the US Federal Reserve (Fed) meeting on Wednesday. According to the experts at Commerzbank, statements by Fed boss Jerome Powell in particular are eagerly awaited. Most recently, investors assumed that the Fed would take countermeasures more quickly than previously thought because of the high inflation.
However, rapid and significant interest rate hikes could become a problem for companies with high levels of debt. In addition, inflation in the form of higher wages and raw material costs is weighing on profit margins.
Among the individual stocks, the shares of Delivery Hero stood out negatively. They fell to their lowest level since April 2020 and were last listed 6.7 percent lower. This put them at the bottom of the Dax on Monday. Delivery Hero has been suffering from a sell-off in technology stocks and Corona winners for a long time. In doing so, they have already increased their losses to almost 30 percent in what has been a short year so far. Hellofresh’s shares also went down significantly.
The shares of Siemens Energy seamlessly continued their price slump on Friday and dropped to a record low. Recently, the titles of the energy technology group were traded 6.2 percent in the red. They were hit by the recent profit warning from wind power subsidiary Siemens Gamesa (Siemens Gamesa Renewable Energy SA).
Commerzbank shares fell 1.9 percent on news that the bank was preparing for another burden due to the uncertainty surrounding foreign currency loans in Poland. However, they held up better than the market as a whole. For 2021 as a whole, the bottom line is that management continues to expect to be in the black.
According to a press report, Lufthansa could seek a 40 percent stake in Alitalia’s successor company ITA Airways. Both sides are close to an agreement, the Italian newspaper “Il Foglio” reported, citing unnamed sources. The Lufthansa papers lost 3.9 percent.
Hannover Re shares fell by 2.6 percent. The Swiss bank Credit Suisse downgraded the shares to “neutral”. The reinsurer’s stock clearly outperformed the market as a whole and the competitor stocks last year, said analyst Iain Pearce, explaining his new investment recommendation. The potential is therefore no longer sufficient for an “outperform” vote.
The euro last cost 1.1304 US dollars. The European Central Bank last set the reference rate at $1.1348 on Friday.
On the bond market, the current yield fell from minus 0.19 percent on Friday to minus 0.23 percent. The Rex bond index (REX overall price index) rose by 0.18 percent to 143.78 points. The Bund future rose by 0.23 percent to 170.73 points./edh/mis
— By Eduard Holetic, dpa-AFX —