newsdog Facebook

DAX Extends Losses After Wall Street Carnage

RTTNews 2018-02-11 09:08:19

German stocks fell sharply on Tuesday, tracking weak cues from Wall Street and Asia, as investors fretted about the impact of rising inflation and higher interest rates.

Traders also kept an eye on political developments as Chancellor Angela Merkel's conservatives and the Social Democrats embark on a final round of talks to clinch an agreement on a renewed "grand coalition" or "GroKo".

The benchmark DAX was down 232 points or 1.84 percent at 12,452 in opening deals after declining 0.8 percent on Monday.

Gerresheimer tumbled 6.3 percent after Christian Fischer, Chairman of the Management Board, resigned due to personal reasons.

Reinsurer Munich Re fell almost 5 percent after its Q4 net profit missed forecasts.

Optoelectronics company Jenoptik slumped as much as 8 percent despite the company reporting higher EBIT for fiscal 2017 and confirming its FY18 revenue outlook.

In economic releases, German factory orders recovered on foreign demand in December, data from Destatis showed.

Factory orders increased by more-than-expected 3.8 percent month-on-month in December, in contrast to revised 0.1 percent drop in November. Orders were expected to climb 0.8 percent.

Separately, survey results from IHS Markit showed that activity in Germany's construction sector expanded at the fastest pace in nearly seven years in January on mild weather.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com