DAX Dips On Delta Variant Fears
The thirty-scrip German benchmark DAX 30 is witnessing broad weakness with 3 advances to 27 declines in a day of cautious trade as virus fears resumed with the emergence and transmission of the highly infectious delta plus variants of the Covid-19 virus. The index is currently trading close to 15550 levels, down around 0.90 percent from Tuesday’s close and down 1.60 percent from the all-time high of 15802.70.
Fresenius Medical Care with a gain of 0.49 percent, Merck with an uptick of 0.19 percent and Deutsche Wohnen which is trading 0.07 percent higher are the only scrips that are resisting the sell-off. Volkswagen has declined by 2.38 percent closely followed by Continental with 2.18 percent decline and Delivery Hero with 2.10 percent correction.
Maximum Turnover of 181.91 million euros is recorded in Volkswagen followed by Allianz with volume of 113.88 million euros.
Fears over the delta plus strain derailing the nascent economic rebound appear to have eclipsed the strong labor market indicators viz sharper decline in unemployment numbers and stable jobless rate. Markets seemed to have shrugged off data that showed unemployment numbers for June decline to 2.69 million, recording a decrease of 38 thousand compared to decrease of 19 thousand in the month of May. Meanwhile, the jobless data remained at the 5.9 percent level recorded in the previous month.
The easing in Eurozone’s headline inflation numbers as well as core inflation remaining within ECB’s comfort level of 2 percent pre-empting early roll-back of monetary stimulus have however failed to enthuse market sentiment.
Markets await domestic data on Retail Sales and Manufacturing PMI on Thursday and Service PMI on Friday. More keenly watched would be the monthly payroll data from the U.S that is perceived to strongly influence Fed’s monetary policy decisions.
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