Dax weaker again: BASF shocked investors

ensure a growing economy and the uncertainty around the Brexit have set the stock markets on Monday. The Dax rustled by a further 1.1 per cent in the depth and reached 10.672 points, the lowest level in two years.

Already in the last week, the market barometer had lost about four percent. “The eyes of investors are now directed almost exclusively to the bottom,” said portfolio Manager Thomas Altmann from the asset Manager, QC partner. “The hope for a year-end rally have now abandoned practically all of them.”

the losses in The Dax sum, since the beginning of the year, in the meantime, more than 16 percent. For the first time in seven years, the German leading index is expected to finish the year in the red. “It is to be expected with a turbulent end of the trading year 2018,” forecasted equity analyst Milan Cutkovic from a broker AxiTrader. Like a sword of Damocles hanging around the exit of the UK via the stock exchanges hang.

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It is completely open whether the British Prime Minister Theresa May in the case of the Tuesday’s scheduled vote in the Parliament, the majority is the government and the EU negotiated Brexit Treaty. “Missing May for your Deal votes more than 100, then it is likely to be very tight and we doubt that you can hold on to then as Prime Minister,” said currency expert Manuel Andersch by the Bank. “The political Chaos could hardly be greater, and accordingly, turbulent, it is likely to go on the pound-market.”

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The British currency traded with 1,2723 Dollar hardly changed. A judgment of the European court of justice (ECJ), according to which the United Kingdom can the Brexit-Declaration unilaterally take back, not brought investors out from the rest.

uncertainty there was in the bond markets as a result of the for weeks, ongoing protests in Paris. Due to the sometimes violent demonstrations against the reform policy of the President and Emmanuel Macron, the French Central Bank halved its forecast for the growth of the domestic economy. Also, Finance Minister Bruno Le Maire is expecting a shock. The risk premium on ten-year French government bonds and comparable German government bonds increased and reached the highest level since may.

investors separate from the BASF share

The stock market BASF after a profit warning in the spotlight. With losses in the shares of the chemical giant BASF have reacted on Monday to the lowered full-year forecast of the company. The title is lost after the start of trading on the German stock more than four percent of the market. BASF had lowered due to the low water and the car lull its forecast and expected for 2018, a stronger decline in earnings. The low water levels on the Rhine led to a loss of production, the company also gets to see the first effects of the trade conflict between the United States and China to feel that the Dax-listed company on Friday after market close, had warned.

The profit before interest and tax (Ebit) and before special items will drop in 2018 to 15 to 20 per cent, had communicated to BASF. So far, the company had a decline of up to 10 percent. Because of the low Rhine levels and the resulting production restrictions, the group will be recorded in the final quarter, a charge to Income of up to 200 million euros. In addition, the business with the automotive industry slowed in the third quarter. In particular, the demand from customers in China slowed significantly.