30 a..m., a 0.4 % decline from Friday’s close. At the top of the sector list were Deutsche Telekom, Hannover Re, and Münchener Re, while Siemens Energy, Infineon, and Deutsche Bank lagged behind.
Jochen Stanzl, chief market analyst at Consors Bank, remarked that “the path of least resistance appears to be leading the DAX downward”. He attributed the move to a surprise nomination by President Trump of a potentially conservative Federal Reserve chair. “The market had expected Trump to work hard to place a Powell successor who favors fast falling policy rates, but investors seem unable to exit risk too quickly. Even precious metals no longer provide a hedge” Stanzl added. “Cash is king” became the rallying cry.
The euro edged harder against the dollar early in the morning. One euro traded at $1.1863, translating to $1 = €0.8430.
Meanwhile, Brent crude fell sharply. By 9 a.m. German time a barrel of North Sea Brent was priced at $66.07, down $3.25 or 4.7 % from the previous day’s close.