Investors pulled out en masse from equity markets on Monday due to a possible setback in the global economic recovery. The rapid spread of the particularly contagious Delta variant of the coronavirus could delay the easing of pandemic restrictions in some areas, said investment strategist Ian Williams of brokerage Peel Hunt. the Dax significantly increased its recent losses in the trade and fell 2.6% to 15,133 points at the end of the trade.
Equities in the travel and leisure sector were particularly affected by heightened renewed investor nervousness across Europe. The European industry index fell 3.5 percent. New restrictions linked to corona in international air traffic would particularly affect this sector. The papers of the shipping company “Aida” Carnival Cruise came last with less than eight percent. In this country, the shares of the airline Lufthansa and the shares of the aircraft manufacturer Airbus lost respectively 2.9 and 6.3% in the M-Dax. In Dax, the shares of engine manufacturer MTU were the weakest at -6 percent. The papers of the tourist group Tui lost 4.3% of their value.
RWE shareholders had to accept losses of 3.8%. The catastrophic floods in North Rhine-Westphalia affected the coal-fired power plant in Weisweiler and other sites of the energy company. RWE estimated the damage to be in the double digit million range. Profit-taking on S-Dax also weighed on Adva Optical papers, which lost 8.5%. As of Friday, shares of the network equipment supplier hit a 20-year high. US stock markets also fell significantly. the Dow jones lost 2.1% to 33,962 points. Shares of financial firms Citigroup, Bank of America, JP Morgan and Goldman Sachs fell 2.6 to 3.3 percent. Investors are worried about income from traditional lending activity, as ten-year U.S. government bond yields have fallen to their lowest level in five months and bank lending rates are based on that.