The Dax failed to improve after a very weak start on Monday and by 12:30 pm, the index was calculated at around 21,365 points, a minus of 1.7 percent compared to the previous trading day. At the top of the list of stocks, Rheinmetall, Deutsche Telekom and Deutsche Börse were leading, while Daimler Truck, Volkswagen and Porsche were at the bottom.
“As was to be expected after the weak market opening, the stocks of export-oriented companies from the automotive and chemical sectors are under pressure” said market expert Andreas Lipkow. “It’s not the question of whether there are US tariffs, but rather the way the US policy is being implemented, that is causing uncertainty among investors.”
The slightly better-than-expected European purchasing managers’ indices could do little to change the situation. They all remain in the contraction zone below 50. “The higher-than-expected consumer prices in the EU were also taken with interest” said Lipkow. “It’s indicating a very slow stabilization of price formation in Europe.” The trading day remained exciting and was likely to be further dynamized by the US market opening.
The European common currency was slightly weaker at Monday’s midday: one euro cost 1.0248 US dollars and one dollar was worth 0.9758 euros.
Meanwhile, the oil price rose significantly: a barrel of the North Sea’s Brent type cost around 12 pm German time 76.82 US dollars, a 1.5 percent increase from the previous trading day’s close.