Frankfurt Stock Exchange: Italy, Brexit and Fall Khashoggi weigh on the economy of Dax

From dpa October 23, 2018 – 10:16

Frankfurt / Main – The Dax is under pressure on Tuesday. Falling prices in New York and especially in Asia give the German leading indicator a downward trend. Persistent global political problems were still considered a burden.

After half an hour of trading, the Dax lost 1.37% to 11,366.48 points. The day before, he was running out of air after a good start. Recent hopes of stabilization have proven to be a flash of fire.

"The sale on the stock market continues," said the Landesbank Baden-Württemberg in a morning commentary. According to IG Market Supervisor Chris Henke, the budget dispute between Rome and Brussels in the financial markets continues to cause nervousness. The European Commission discusses controversial draft budgets in Italy in Strasbourg on Tuesday. Like a sword of Damocles, the negotiations on Brexit, the Khashoggi affair and the trade dispute between the United States and China hover over stock markets.

The MDAX mid-market index lost 1.34% to 23,715.29 points. The EuroStoxx 50 leading indicator of the euro area fell by just over 1% to 3155.89 points.

In the morning, the focus was mainly on the actions of Bayer. They collapsed after a US judge's decision to only reduce the damage to Monsanto in the US glyphosatprozess, while Dax-tail lost nearly 7%. This has dampened the hopes of investors to put in place a new process that has recently stimulated recovery. Bayer now wants to appeal.

In general, sales continued, especially for technology and automotive values. In the Dax, Wirecard and Infineon fell by 4%. Wirecard's shares again suffered from profit taking after a recovery period; Infineon was penalized by the disappointing prospects of its sector counterparts, AMS, until the last quarter.

Among the automobile stocks in the leading index, Volkswagen recorded the biggest loss, around 2%. According to dealers, the already grim leanness of Tuesday was further influenced by the disappointing figures of the Chinese automaker BAIC. This market is considered a major growth market for German car manufacturers.

At MDax, Sartorius lost about 3.5%. Although the supplier of pharmaceutical and laboratory equipment has confirmed its annual target, according to market participants, the divisional outlook has disappointed the reduction of targets in the laboratory sector.