High price losses in Siemens Energy shares and, as a result, also in Siemens shares, put the Dax under pressure on Thursday. The leading German index lost 1.2 percent to 14,714 points around midday. The stock market barometer thus approached Monday’s low of 14,630 points, which was the lowest price since mid-March. A fall below this low could increase downward pressure, analysts say.
High price losses in Siemens Energy shares and, as a result, also in Siemens shares, put the Dax under pressure on Thursday. The leading German index lost 1.2 percent to 14,714 points around midday. The stock market barometer thus approached Monday’s low of 14,630 points, which was the lowest price since mid-March. A fall below this low could increase downward pressure, analysts say.
According to its own statement, Siemens Energy is currently examining “various measures to strengthen Siemens Energy’s balance sheet.” Discussions are being held with the federal government and banks, among others. “Wirtschaftswoche” had previously reported that the company was negotiating with the federal government about state guarantees for loans of up to 15 billion euros. The magazine relies on financial circles.
Siemens Energy then collapsed by more than 30 percent. With prices below 8 euros, they fell to their lowest level since the IPO three years ago. The loss in market value amounts to around two and a half billion euros. In its wake, Siemens shares lost 4.4 percent. The Siemens Group still holds almost a third of Siemens Energy. With a market value of almost 100 billion euros, Siemens is one of the heavyweights in the DAX. Share price losses therefore have an above-average impact on the leading index.
Prices on the German stock market had already fallen significantly in early trading. Traders and analysts attributed this to stubbornly high yields on US government bonds and to high price losses on the US technology exchange Nasdaq the day before, which are likely to widen this Thursday. Many US technology stocks are considered to be highly valued and therefore particularly vulnerable to rising interest rates on the capital markets, which reflect US government bonds.
The MDax of medium-sized companies lost 0.7 percent to 23,863 points on Thursday. The Eurozone leading index EuroStoxx 50 fell by 0.8 percent.
The key interest rate decision by the European Central Bank (ECB) could set the next tone in the early afternoon. The majority of market observers assume that after ten recent interest rate increases there will now be no further increase. Inflationary pressure is now easing and the economy is weakening.
Source: Stern
