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FRANKFURT (dpa-AFX) – The fear of the economic consequences of a new wave of corona infections hit the Dax (DAX 30) badly on Monday. The German benchmark index significantly expanded the losses it had already made at the end of last week and lost 3.29 percent to 12,684.86 points by the early afternoon. The stock market barometer thus fell back to its level at the end of August.
For the MDax of the medium-sized stock market values (MDAX) it fell by 2.99 percent to 26,689.93 points. The leading Eurozone index EuroStoxx 50 (EURO STOXX 50) was 3.2 percent lower. According to market analyst Milan Cutkovic from the trading company AxiTrader, the rising number of corona infections in Europe will now be the next disruptive factor for the stock rally that has already stalled.
With a rapid increase in corona cases, the UK is at a “turning point” according to Health Secretary Matt Hancock. When asked whether the country should expect another lockdown, he told the BBC: “I’m not ruling it out, I don’t want it.” A lockdown could have catastrophic effects on the country’s economy, according to expert Cutkovic. In this country, the number of new infections reported has reached a high for almost five months.
There were only losers in the Dax on Monday. At the end of the index, Deutsche Bank (Deutsche Bank) securities plummeted by around seven percent. The sector also suffered severe losses across Europe. The reason for this was a leak in confidential money laundering reports from the US Treasury Department regarding dubious payment flows, the so-called FinCEN files. The report specifically alleges JPMorgan (JPMorgan ChaseCo), HSBC, Standard Chartered Bank, Deutsche Bank and the Bank of New York Mellon. Even if there are some questions to be clarified, the FinCEN files in any case again increased the regulatory and sanction risks for the industry, explained market analyst Neil Wilson from Markets.com.
At Germany’s largest financial institution, the report said: “Where necessary and appropriate, we have taken action. The bank has invested heavily in improving controls, and we are emphatically focusing on meeting our responsibilities and obligations.”
The dispute over the costs of using Telefónica Deutschland’s (O2) (Telefonica Deutschland) cellular network by competitor 1 & 1 Drillisch caused the shares of 1 & 1 Drillisch to collapse by more than 27 percent. The shares of the parent company United Internet lost around a quarter of their value. 1 & 1 and United Internet accuse the subsidiary of the Spanish group Telefónica (Telefonica) of having increased the costs for the use of the mobile network considerably from July before the conclusion of the ongoing negotiations. Telefóncia Deutschland rejected the allegation and sees the price increase covered by contracts and agreements.
Since 1 & 1 and United Internet apparently did not expect the price increase, both companies had to lower the forecast for the operating result in the current year on Saturday. Telefónica Deutschland’s shares were a good two percent in the red.
The stock exchanges across Europe also went downhill. Against this background, the euro came under pressure and was most recently quoted at 1.1775 US dollars. The European Central Bank last set the reference rate on Friday at 1.1833 (Thursday: 1.1797) dollars. The dollar cost 0.8451 (0.8477) euros.
On the bond market, the current yield fell from minus 0.50 percent on Friday to minus 0.52 percent. The Rex bond index (REX total price index) rose by 0.08 percent to 145.73 points. The Bund future rose by 0.32 percent to 174.62 points./la/jha/
— By Lutz Alexander, dpa-AFX —