Bundesliga Opens with Downturn for DAX Prior to Matches
The Frankfurt Stock Exchange Kicks off with a Loss 📉
Get ready for an eventful day in German politics and the stock market! The Frankfurt Stock Exchange started with a fall this morning, with the DAX dropping 3.2% to approximately 11,680 points as of 9:30.
Investors are on high alert as the afternoon approaches, anticipating a conference call between Chancellor Angela Merkel (CDU) and the heads of the federal states. The discussion will focus on the next phase of COVID-19 responses. A draft resolution leaked to dts Nachrichtenagentur hints at stricter measures, including a potential "shutdown" of the country starting November 4.
Under the proposed plans, the government aims to limit public gatherings to a maximum of two households, close institutions related to leisure activities like concert halls, cinemas, amusement parks, brothels, private sports facilities, and fitness studios. All entertainment events will be banned, while gastronomy businesses will be forced to shutdown. Retail stores and schools will remain open under specific conditions.
Investors seem caught off guard by the strictness of the plans. The stocks showing the most growth include Delivery Hero, FMC, and Merck, while Daimler, HeidelbergCement, and BMW lag behind. So, buckle up, it's going to be a rollercoaster ride!
Meanwhile, the European common currency weakened slightly this morning, with one euro trading at 1.1757 US dollars (-0.20%).
📸 Courtesy: Frankfurt Stock Exchange, via dts Nachrichtenagentur
Insight: *The proposed measures are part of a broader strategy that uses the hospitalization incidence as a key metric. Various access restrictions, including 3G, 2G, and 2G+ rules, would be implemented depending on the incidence [1]. Furthermore, amendments to the Infection Protection Act in September 2021 emphasized hospitalizations, ICU occupancy, and vaccination rates [1]. However, specific details about the measures starting on November 4 are not provided in the available sources._
[1] "German COVID-19 restrictions: an outline and timeline," October 14, 2021, Deutsche Welle (dw.com)
- The upcoming conference call between Chancellor Angela Merkel (CDU) and the heads of the federal states could have significant implications for various sectors, including finance and business, as stricter COVID-19 measures are proposed, potentially affecting general-news and politics.
- The leaked draft resolution suggesting a possible "shutdown" of Germany starting November 4 may cause a ripple effect across industries, especially those related to leisure activities such as cinemas, amusement parks, brothels, and fitness studios, which have already been struggling due to previous lockdowns.
- The stocks showing growth amidst this uncertainty, such as Delivery Hero, FMC, and Merck, could indicate a shift in consumer behavior towards online services, delivery, and pharmaceuticals, which might be less susceptible to lockdown restrictions in the other industry sectors.
