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HomeBusinessFrankfurt Stock Exchange: Dax ends dreary week with loss

Frankfurt Stock Exchange: Dax ends dreary week with loss

Tristesse prevailed on the German stock market on Friday. The Dax lost 1.69 percent to 10,336.09 points and was down 2.7 percent on a weekly basis.

Börsianer attributed the losses to a looming failure of the drug Remdesivir of the pharmaceutical company Gilead Sciences in use against Covid-19.

In addition, market participants justified investor caution with the ongoing uncertainty about the extent to which the Corona crisis will affect company results in the coming quarters. About a third of the 30 Dax companies will publish quarterly reports next week. Investors are likely to look to see if the corporations even dare to make statements in the coming months in the face of the Corona crisis. Much optimism is not to be expected from most.

The Dow Jones industrial average fell 1.18 percent to 22,240.69 points on Friday.

Meanwhile, the series of economic data at historically low levels is not abating. The Ifo business climate for Germany slipped to another record low in April.

At the Dax end, Lufthansa’s shares slumped 8 percent to 7.18 euros, approaching a record low of 6.80 euros in March 2003. The airline had reported an operating loss of 1.2 billion euros for the first quarter the previous evening and can no longer save itself from the Corona crisis on its own. For the current second quarter, an even higher loss is expected.

Across Europe, investors also parted ways with banks’ shares, which are considered to be sensitive to the economy. In Germany, Deutsche Bank’s securities lost 6.8 percent and Commerzbank’s lost 4.1 percent.

Among the favourites in the SDax secondary value index, Drägerwerk’s shares benefited from a purchase recommendation from Bank Hauck & Aufhäuser with an increase of 4.9 percent. On the other hand, a higher-than-expected loss by the steel and tube manufacturer Salzgitter in the first quarter lowered its share price by 5.5 percent.

The euro zone’s benchmark EuroStoxx 50 index fell 1.5 percent to 2809.07 points on Friday. London’s FTSE 100 and France’s Cac 40 each lost 1.3 percent. The U.S. benchmark Dow Jones Industrial index was up more than 1 percent at the European close. The euro last traded at US1.0799 US cents. The European Central Bank had previously set the reference rate at 1.0800 dollars. The dollar had thus cost 0.9259 euros.

On the German bond market, the Rex bond index rose 0.18 percent to 144.70 points. The yield on circulation fell to minus 0.46 percent from minus 0.42 percent the previous day. The Bund futures were up 0.21 percent at 172.72 points in the evening.

Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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