The Dax started the trading week weakly. Burdened by political uncertainty resulting from the European elections, the leading index lost 0.70 percent to 18,428.09 points towards the end of the first hour of trading. This put the Dax towards the lower end of the range of the past few weeks. In the opening minutes, the leading index came close to the previous June low of 18,365 points.
The MDax, which includes medium-sized stocks, recently fell by 0.55 percent to 26,714.59 points. The EuroStoxx 50, the leading index for the eurozone, fell by 1.1 percent because uncertainty was particularly high in France. There, President Emmanuel Macron wants to create clear political conditions with new elections to the National Assembly.
“Political uncertainty back on the stock exchange floor”
Right-wing parties in several countries had great success in the European elections. “The shift to the right in Europe is bringing political uncertainty back to the stock market,” said market analyst Jochen Stanzl from broker CMC Markets this morning. “Macron is probably hoping to expand his majority in the parliamentary chamber with the new election. But achieving this majority will not be easy, because Macron’s party appears weakened,” wrote JPMorgan expert Raphael Brun-Aguerre this morning.
On the German stock market, prices in the energy sector suffered from political uncertainty, as the poor performance of the traffic light coalition in Germany caused a stir. The Greens, as supporters of the German energy transition, suffered significant losses in the European elections on Sunday.
Shares of wind turbine manufacturer Nordex fell by 2.1 percent. The DAX group RWE and the solar specialist SMA Solar also saw their shares fall by 1.4 and 1.8 percent respectively.
Porsche AG shares were traded ex-dividend after last Friday’s Annual General Meeting. Investors must take into account the payment of 2.31 euros and the associated optical discount when determining the price.
Source: Stern
