Germany’s DAX Lower with U.K. Exit Considerations

Germany’s DAX was lower to start the week on Monday as stocks in Europe trended lower. The DAX Index closed at 9,842.29 for a loss of -73.73 points or -0.74 percent.


Source: Google Finance.

Trading was mainly affected by a Treasury report from the U.K. government citing the risks of a a United Kingdom exit from the European Union. Finance minister, George Osborne warned of the risks involved in leaving the European Union. The report’s tone indicated that a U.K. exit may not be as likely as previously expected however the U.K.’s exit considerations had valuations trading lower in Germany. Germany is reported to be one of the most affected countries by an exit from the U.K. since Germany and the U.K. have broad working and production contracts through their alliance with the European Union that would greatly affect both countries and especially Germany.

Stocks trading actively included small-cap, mid-cap and banking stocks which would likely be at the highest risk if a U.K. exit occurs. Sectors gaining for the day included technology, food and beverages and logistics. Sectors mostly lower for the day included chemicals, media and telecom.

Bayer also traded actively Monday as the German company announced its $62 billion bid for Monsanto. Monsanto gained for the day while Bayer was lower.

Stocks reporting gains in the DAX included Infineon Technologies, Adidas and Lufthansa. Stocks reporting the greatest losses included Bayer, Daimler AG and RWE AG. For the day, the DAX Volatility Index was higher with a gain of 2.11 percent to 22.76.

In other European markets on Monday, the FTSE 100 was lower by -19.89 points or -0.32 percent to close at 6,136.43. The FTSE 250 was higher at 17,031.74 for a gain of 109.68 points or 0.65 percent. France’s CAC 40 was lower at 4,325.10 for a loss of -28.80 points or -0.66 percent. The Stoxx Europe 600 was lower at 336.69 for a loss of -1.32 points or -0.39 percent. The Europe Dow was lower at 1,517.84 for a loss of -8.11 points or 0.53 percent.

In Asia, stock trading was mixed. Japan’s Nikkei was down -81.75 points or -0.49 percent to 16,654.60. Hong Kong’s Hang Seng Index was lower at 19,809.03 for a loss of -43.17 points or -0.22 percent. The Shanghai Composite in China was higher at 2,843.65 for a gain of 18.16 points or 0.64 percent. The S&P BSE Sensex was lower at 25,230.36 for a loss of -71.54 points or -0.28 percent and the NSE Nifty was lower at 7,731.05 for a loss of -18.65 points or -0.24 percent. The Asia Dow gained for the day with a closing value of 2,581.98, gaining 12.09 points or 0.47 percent.

U.S. market indexes were lower Monday. For the day the Dow Jones Industrial Average was down -8.01 points or -0.05 percent to close at 17,492.93. The S&P 500 was also down, closing at 2,048.04 for a loss of -4.28 points or -0.21 percent. The Nasdaq Composite closed lower at 4,765.78 for a loss of -3.78 points or -0.08 percent.

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