Frankfurt / Main (APA / DPA-AFX) – The DAX fell on its heavily weighted Bayer shares during the early Wednesday trading session, hit hard by heavy price losses. The leading index lost 0.64 percent to 11,713.33 points, after reaching 11,823 points the previous day, the highest level since last October.
Bayer suffered a severe relapse in a sub-process with suspected cancer risk of the glyphosate-rich weed killer Roundup in the US. The shares plummeted by almost 12 percent. The process is now entering a second phase with the same jury, in which liability issues are clarified. The likelihood that Bayer would lose the trial has now increased, wrote Baader Bank analyst Markus Mayer. There is also a growing chance that Bayer will become an acquisition target for activist investors.
"The verdict is a big blow to Bayer," says analyst Jochen Stanzl of CMC Markets. The fear of defeat, including in the second phase of the process, combined with high compensation payments, should also weigh on the market as a whole in the coming days given the high weighting of Bayer shares in the DAX, he believes.
Even before the US Federal Reserve's most important interest rate decision in the evening, investors no longer lean far out of the window. No one expects an interest rate rise by the Fed during the meeting. The markets mainly look at the central bankers' forecasts. These were most recently submitted in December. At that time, the central bank had signaled three further interest rate rises by the end of 2020. The experts at Dekabank expect that this forecast will be reduced to one or two interest rate cuts.
The index of mid-size MDax lost 0.30 percent to 25,318.72 points. A little disillusionment also offers a media report on the lack of progress in trade negotiations between the US and China.
Proof that world trade no longer functions smoothly is now provided by the American parcel service Fedex. The Group expects a global economic downturn and continues to lower its profit forecast for the current financial year after a disappointing winter quarter. Among the DAX shares, Deutsche Post shares suffered a discount of slightly less than 1 percent. An upgrade by HSBC investment bank to "buy" prevented but possibly higher exchange losses.
& # 39; The world's largest reinsurer Munich Re wants a little higher after a return to a billion dollar profit in the current year. According to the company, the surplus in 2019 should amount to around 2.5 billion euros. The papers lost 1.7 percent on Wednesday. Analysts said that Munich Re's expectations were below market expectations.
Much happens in the middle of the week in the ranks behind the DAX. In the MDax, for example, investors in car supplier Norma Group acknowledged its reluctance to accept a 7.6 percent reduction in 2019. Similarly, Fuchs Petrolub was 6.4% lower. The lubricant manufacturer anticipates weaker revenue growth for the current year.
The fact that Zooplus will miss the turnover targets for 2020 also caused displeasure. In the SDax, the papers of the internet pet trader were the biggest losers with a minus of 10 percent.
~ ISIN DE0008469008 ~ APA120 2019-03-20 / 10: 13