Dax closes the week with a loss - Siemens Energy shares recover

Dax closes the week with a loss - Siemens Energy shares recover

According to a report by Welt.de from October 29, 2023, the past week on the German stock exchange was characterized by turbulence. Various factors such as the Gaza war, high yields on US government bonds and quarterly reports from the USA and Germany weighed on prices. There was also price turbulence at the energy technology group Siemens Energy on Thursday.

The Dax closed on Friday with a loss of 0.30 percent at 14,687.41 points. On a weekly basis, the leading German index recorded a loss of around 0.8 percent. The MDax, which tracks medium-sized stock exchange companies, moved little on Friday and closed with a decline of 0.10 percent at 23,772.02 points.

The other leading European stock exchanges also recorded more significant sales. The EuroStoxx 50 lost 0.87 percent, France's Cac 40 fell 1.4 percent and Britain's FTSE 100 slipped 0.9 percent. In New York, the Dow Jones Industrial lost 0.5 percent at the close of European trading.

Siemens Energy shares recovered after the sharp decline the day before and gained 9 percent. Covestro, on the other hand, recorded losses of 3.4 percent and was at the bottom of the Dax. The plastics company became more cautious for the current year due to a lack of demand recovery and investors' imagination about a takeover by the Arab oil company Adnoc faded.

In the small cap segment, Secunet shares were particularly negative. They reached their lowest level since April 2020 and recorded a price drop of more than 28 percent. The IT security service provider reduced its profit target for 2023 due to higher costs and a lower share of sales from profitable licenses.

Foreign exchange rates showed the euro strengthening against the US dollar, with the euro last at $1.0592. The current yield in German bond trading fell from 2.87 percent to 2.81 percent, while the Rex bond index rose by 0.31 percent.

The factors mentioned have potential impacts on the market and the financial industry. Uncertainty due to the Gaza conflict, global geopolitical tensions and quarterly reports may lead to a more cautious mood among investors. This could lead to further price fluctuations and possible capital outflows.

The turmoil at Siemens Energy shows how badly companies can be affected by certain factors such as negotiations over loan guarantees. Similar events could occur at other companies in the future and impact share prices.

The negative developments at Covestro and Secunet show that individual companies within the market can also come under pressure. A lack of demand recovery and reduced profit targets can lead to negative reactions from investors.

Overall, the article shows that the market and the financial industry are vulnerable to various factors such as geopolitical tensions, quarterly reports and company news. These factors can lead to price fluctuations and uncertainty among investors. It is important to closely monitor these developments and analyze possible impacts in order to make informed investment decisions.

Source: According to a report by Welt.de, “Dax ends turbulent week slightly in the red”, (last accessed on October 29, 2023)