The German DAX index experienced losses at the start of the trading week, closing at 23,527 points. This represented a decline of 0.5 percent compared to the previous day’s closing figure.
Automotive manufacturers, including shares from Porsche and Volkswagen, were among the largest underperformers on the index. Conversely, shares in RWE, Siemens Energy and Merck bucked the downward trend.
Market analyst Andreas Lipkow suggested that the recent profit warnings issued by Porsche and Volkswagen likely acted as a catalyst for a continuation of the current market consolidation. He noted that the automotive sector’s influence within the DAX has diminished considerably in recent years and the sector has faced sustained pressure.
“There have been repeated predictions of a recovery that hasn’t materialized” Lipkow stated. “The German automotive industry faces significant international pressure and investors may be particularly disappointed by the performance of Porsche Automobil Holding, which had previously been regarded as a stable investment.
Lipkow attributed the challenges to the increasing influence of Chinese competition, prompting a shift in strategic direction. He also observed that, despite the declines, a widespread sense of panic has not emerged and post-expiration cleanup activity could further weigh on the shares of automotive companies within the DAX 40.
The euro strengthened during Monday afternoon trading, reaching $1.1774, with a dollar being worth €0.8493.
Gold prices saw a notable increase, reaching $3,733 per fine ounce (+1.3 percent) – equivalent to €101.92 per gram.
In contrast, the price of crude oil decreased; a barrel of Brent North Sea crude was trading at $66.51, down 17 cents or 0.3 percent compared to the previous day’s closing price.
