DAX Stays Negative Despite Early Recovery

DAX Futures

German stocks experienced a decline on Monday, influenced by ongoing concerns regarding geopolitical tensions and apprehensions about potential interest rate increases by the Federal Reserve in light of positive U.S. jobs data. A significant increase in oil prices, elevated bond yields, and disappointing factory orders data negatively impacted sentiment. Brent crude futures rose to exceed $98 a barrel before settling at $97.19, reflecting an increase of up to 4.4% compared to the previous close. The benchmark DAX, which declined to 24,397.50 earlier in the session, losing nearly 400 points in the process, was down 205.02 points or 0.83% at 24,568.70 approximately half an hour before noon.

  • Zalando, Vonovia, Continental, Heidelberg Materials, and MTU Aero Engines experienced declines ranging from 2% to 3%.
  • Siemens experienced a decline of almost 2%, while Commerzbank saw a decrease of 1.9%.
  • BASF, Daimler Truck Holding, Siemens Healthineers, Qiagen, Brenntag, Deutsche Post, Beiersdorf, SAP, Adidas, Symrise, Deutsche Boerse, Merck, and Gea Group experienced declines ranging from 1% to 1.6%.
  • Infineon Technologies increased by 1.4%, Porsche Automobil Holding rose by 0.85%, and RWE advanced by 0.6%.
  • Shares of wind turbine manufacturer Nordex Group increased by 1.5% following the company’s acquisition of new orders amounting to 255MW in the initial two months of the second quarter.

As per reports that Germany’s factory orders experienced a more significant decline than anticipated in April, decreasing by 3.8% for the month, compared to a 4.5% rise in March. Economists had projected a decline of 2.2%. On an annual basis, orders experienced a growth of 1.6%, which is significantly slower compared to the 6.1% growth recorded in March.

Data indicated a notable decrease of 5.3% in new orders within the automotive sector, accompanied by a 16.3% drop in the production of electrical equipment. Orders for mechanical engineering equipment experienced a decline of 7.4%. Orders experienced a downturn across all significant categories, with consumer goods decreasing by 6.7%, intermediate goods falling by 4.4%, and capital goods declining by 2.9%.