the Dax gave way moderately on Monday. The Ifo business climate, which signaled a deterioration in the business outlook, also weighed on investor morale. At the end of the session, the main German index was down 0.3% to 15,619 points. The German economy has passed its peak of growth, said economist Thomas Gitzel of VP Bank in Liechtenstein. The most important German leading indicator is probably giving indications for the months to come. In the fall, the German economy will switch from catch-up mode to normal mode. “The Ifo business climate index prepares us for this.” In addition, the spread of the delta variant of the coronavirus could have clouded the outlook, and problems with delivery of preliminary products and raw materials also had a negative impact.
The second failed takeover of Deutsche Wohnen by Vonovia has been a topic of conversation among investors. Germany’s largest real estate group failed to meet the targeted minimum acceptance threshold of 50 percent of Deutsche Wohnen shares, which was the prerequisite for the takeover. Vonovia shares were the lowest DAX value at minus 2.5%, while Deutsche Wohnen shares led the index with over 1.2%. Investors are now relying on Vonovia to make a new, higher bid.
Auto stocks rallied somewhat from their daily lows. Continental and Volkswagen shares closed down 1.2 percent and 0.8 percent, respectively. BMW shares remained unchanged and Daimler with more than 0.2 percent of the market. Due to missing components with computer chips, BMW interrupts car production at the Regensburg plant for a week.
The surge in bookings in the spring gave Ryanair investors access, pushing shares of the low-cost Irish airline up 3.3%. Dutch medical technology group Philips is to set aside an additional € 250 million for ventilators allegedly harmful to sleep disorders, which overshadowed good quarterly figures. Shares of Philips fell 4.1% in Amsterdam.
Investors in US stock exchanges have also acted cautiously. the Dow jones was rated unchanged at 35,085 points midway through the session.