The Dax experienced a significant decline on Tuesday, following a slightly weaker start. By midday, the index was calculated at around 23,080 points, representing a drop of 1.1 percent compared to the previous trading day. Among the few stocks that remained in the positive range were FMC and E-On, while Infineon, BASF and Porsche were at the bottom of the list.
Following Friedrich Merz’s (CDU) failure to be elected as the Federal Chancellor in the first round, the Dax experienced a substantial loss. Commerzbank’s chief economist warned of long-term consequences. “The voting error recalls that a future black-red federal government could only rely on an extremely narrow majority. This is a difficult environment for economic policy reforms” said Jörg Krämer in an interview with the Funke-Mediengruppe newspapers (Wednesday editions).
Market analyst Andreas Lipkow warned that the voting cast a small shadow on the political future of Germany. “At first, this does not represent a real political setback, but the election theme was already off the radar for investors. Now, slight unease is returning to financial markets” Lipkow stated.
The European community currency saw a slight increase on Tuesday afternoon, with one Euro costing 1.1318 US Dollars and one Dollar equivalent to 0.8835 Euros.
Meanwhile, the oil price experienced a significant rise. A barrel of North Sea Brent crude was trading at 61.92 US Dollars by Tuesday afternoon at 12:00 Central European Time, representing a 2.8 percent increase compared to the previous trading day’s close.