Down 0.75% at around 10:30 a.m., the Dax 30 (Germany 30) started the week with a poor rating for the German economy. According to data published by the Federal Statistical Office Destatis, its industrial production fell sharply in April. Falling 17.9% from March, the lungs of the German economy suffered greatly from the period of containment to fight the coronavirus pandemic.
While the Refinitiv consensus only “expected” a fall of 16%, German industrial production thus recorded the largest decline ever observed since the start of the statistical series.
Capital goods suffered the most, dropping 35.3%. Consumer goods held up better at -8.7% and basic products fell by 13.8%.
On this disappointing data, and after almost three weeks of rallying, the Dax 30 therefore marks time, evolving towards 12760 points. The main index of the Frankfurt stock exchange had risen 3.36% on Friday after a week of strong gains where it jumped more than 10.8% to 12,847 points, up almost 830 points over four sessions.
Wirecard penalized by an investigation for market manipulation
This morning, Deutsche Bank AG, Volkswagen and BMW took the lead in the Dax 30 with increases between 1.7% and 1.9% while Wirecard, the red lantern of the morning, lost 3.35%.
Still under the eye of justice for suspicions of market manipulation, Wirecard AG was the subject of a search and the opening of proceedings by the financial markets authority, announced on Friday Munich prosecutor’s office.
The transaction follows the opening of a preliminary investigation initiated last year, during which short sales of Wirecard securities had been banned for two months.
Semiconductor manufacturer Infineon (-2.12%), suffers from still tense trade relations between the United States and China. After restricting access to Huawei’s foreign suppliers, Washington threatens Beijing with tougher economic sanctions if it does not give up imposing its security law on Hong Kong.
This morning, the Chinese Foreign Ministry said that the situation in the special territory had reached a point “where Beijing had to interfereThe Hong Kong government on Saturday rejected a request for a referendum by pro-democracy movements on China’s national security law.
Lufthansa to leave Dax 30
Finally, Lufthansa (+ 1%) will soon exit the Dax 30 to give way to Deutsche Wohnen, a real estate specialist. The German airline giant, whose share price has been sealed by coronavirus, will be “downgraded” from June 22 to MDax average values.
To weather the Covid-19 crisis, Lufthansa announced on Wednesday the preparation of a vast restructuring plan. Benefiting from 9 billion euros in aid and public guarantees, the group was forced to open its capital to the German state and meet certain competitive requirements of the European Union.
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