The German stock market came under heavy pressure at the beginning of the shortened pre-Christmas week.
The German stock market came under heavy pressure at the beginning of the shortened pre-Christmas week.
The rapid spread of the omicron variant of the corona virus weighed on the mood on Monday, as did concerns that one of US President Joe Biden’s core domestic political projects could be about to end.
The German leading index Dax dropped by 2.56 percent to 15,133.99 points. The MDax of the medium-sized stock market values lost 1.77 percent to 33,849.68 points. The leading Eurozone index EuroStoxx 50 lost 2.3 percent.
“The word of lockdown is making the rounds again,” wrote Jürgen Molnar, capital market strategist at the trading house Robomarkets. “The Netherlands is already in lockdown, and it could be so far after Christmas in Germany too.” Investors’ fear of a renewed standstill in large parts of the economy is increasing again and is sending stock exchanges around the world downhill. Because of Omikron, there was no sign of the pre-Christmas calm this year on the stock market either, the year-end rally seems to have finally ended.
Investors also looked towards the US with concern. The Democratic Senator Joe Manchin had announced that he could not agree to a billion dollar social and climate package. It is now unclear whether the president’s prestige project can still be saved.
In doing so, investors avoided stocks from the renewable energy sector. Siemens Energy’s paper, for example, lost around four percent, and the shares in wind turbine manufacturer Nordex were down by almost five percent.
In the auto sector, fear of the economic effects of more stringent corona measures had a strong impact. For the shares of Daimler, BMW and Volkswagen (VW) it went down by 2.8 to 3.8 percent.
The papers of Lufthansa buckled by 4.7 percent. Industry investors are particularly concerned that Great Britain is now considered a corona virus variant area in Germany. This means that entry into Germany is only possible with severe restrictions.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
