Bayer shares push DAX into the red - financial experts analyze the price collapse and market events

Bayer shares push DAX into the red - financial experts analyze the price collapse and market events

According to a report by www.schwaebische.de, the collapse in Bayer shares pushed the Dax into the red at the start of the week. Although the majority of the 40 DAX stocks rose, the leading German index ended trading on Monday 0.11 percent lower at 15,901.33 points. Last week the DAX rose by around 4.5 percent. In addition, the MDax of medium-sized companies rose by 0.42 percent to 26,394.86 points on Monday and predominantly moderate profits were also recorded across Europe and in the USA.

The bad news for Bayer led to a temporary share price drop of just over 20 percent, which is the lowest level in 17 years. The bad news from two divisions is weighing on the agricultural and pharmaceutical company. This led to the clinical trial with the promising drug Asundexian being stopped. The Aurubis share price fell by 3.6 percent in the MDax after the investment bank Oddo BHF lowered its investment rating from “Outperform” to “Neutral”. On the other hand, SAF-Holland's shares rose by 5.8 percent following a buy recommendation from Bank Warburg.

The impact on the market could be mixed. The Dax could be burdened by the collapse in Bayer's share price and the negative developments in other companies. Investors could become more cautious and focus on less risky investments. This could lead to the DAX remaining volatile and possibly continuing to record losses. In addition, negative news from the USA and other European countries could also unsettle investors.

Regarding the foreign exchange market, the euro could continue to strengthen against the US dollar, having already reached its highest level since mid-August. This could have an impact on German companies' exports, as a stronger euro makes their products more expensive abroad.

On the bond market, the current yield rose to 2.61 percent from 2.54 percent on Friday, indicating a possible rise in interest rates. This could impact credit demand and investment activity in the economy.

Overall, the facts suggest that the DAX and other financial markets could continue to behave volatile in the near future, particularly due to the negative developments at Bayer and other companies. Investors should monitor the situation closely and adapt their investment strategies accordingly.