Germany's DAX drops 1.2% as European stocks slip on China data

Record ID: 1671066

  • Title: Germany's DAX drops 1.2% as European stocks slip on China data
  • Date: 2nd May 2022
  • Summary: FRANKFURT, GERMANY (MAY 2, 2022) (REUTERS) DAX BOARD AT FRANKFURT STOCK EXCHANGE TOP VIEW OF FLOOR TRADERS /DAX BOARD DAX CURVE VARIOUS OF TRADERS BOARD SHOWING DAX LOW OF 13,952.12 POINTS AT 09:22 A.M. (0722 GMT), 22 MINUTES AFTER OPENING VARIOUS OF TRADER BOARD SHOWING DAX HIGH OF 14,027.16 POINTS AT 09:15 A.M. VARIOUS OF TRADERS VARIOUS OF BANK SHARES ON BOARD ANALYST ROBERT HALVER OF BAADER BANK WALKING PAST HALVER LOOKING AT BOARD BOARD SHOWING DAX LOSS OF 91.14 POINTS OR 0.65% (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “We still don’t know what will happen next: there is a war, the oil embargo, China which is now having economic difficulties with its lockdowns in many areas. That’s a huge burden on investors’ sentiments and right now no one dares to massively invest in stocks.” TRADER PUTTING ON HEADSET (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “Germany and the European Union are more or less able to handle an oil embargo. We have now found other supplier countries but the question is how the Russian side will react. Will Putin turn off the gas because of the sanctions? That would create entirely different problems. It would put our ‘Mittelstand’ industry of small and medium sized companies in serious danger.” VARIOUS OF AUTOMOBILE SHARES ON BOARD (SOUNDBITE) (German) HEAD OF CAPITAL MARKETS ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: “The problem is: the car industry does have orders for cars but they can’t deliver because raw materials are missing, even if it’s only cable harnesses. Now we’re facing an additional problem: China is closing its economy, they’re introducing lockdowns we saw here two years ago. So they can neither produce or deliver cars. That’s a massive handicap for the German auto industry.” CAMERA CREWS ON TRADING FLOOR TOP VIEW OF FLOOR
  • Embargoed: 16th May 2022 09:44
  • Keywords: China lockdowns DAX Frankfurt exchange Russia Ukraine war auto car industry oil embargo shares stocks
  • Location: FRANKFURT, GERMANY
  • City: FRANKFURT, GERMANY
  • Country: Germany
  • Topics: Europe,Economic Events
  • Reuters ID: LVA001519402052022RP1
  • Aspect Ratio: 16:9
  • Story Text: European stocks fell in light trade on Monday (May 2), pressured by heavyweights such as Mercedes-Benz trading ex-dividend, and as crucial China data fuelled market speculation of a sharp slowdown in the world's second-largest economy.
    The pan-European STOXX 600 index dropped 1.8%, set to snap a three-day session of gains, although trading volumes were thinned by a UK bank holiday.
    Ex-dividend factors weighed heavily on the STOXX 600, with automaker Mercedes-Benz, healthcare company Bayer, auto parts maker Continental and chemical group BASF all losing their payout attraction.
    Data released last weekend showed China's factory activity contracted more than feared in April as widespread COVID-19 lockdowns halted industrial production and disrupted supply chains.
    Frankfurt analyst Robert Halver of Baader bank cited uncertainties such as the war in Ukraine and discussions within the European Union on a possible oil embargo which weighed heavily on markets.
    “That’s a huge burden on investors’ sentiments and right now no one dares to massively invest in stocks,” said Halver.
    Shortly before 11:15 a.m. (0915 GMT), Mercedes-Benz was down 7.12% while the DAX stood at 13,926 points, a loss of 171 points or 1.2%.
    (Production: Andreas Buerger, Frank Simon, Michele Sani)
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