DAX Down Over 2% As Credit Markets Worries Hurt Sentiment
(RTTNews) - Germany's DAX is down sharply on Friday with stocks tumbling amid concerns about the health of U.S. banking sector after Zions Bancorp and Western Alliance Bancorp disclosed on Thursday that they were exposed to alleged fraud by borrowers.
Concerns about U.S.-China trade tensions, and the ongoing war in Ukraine are also weighing on sentiment.
The DAX, which plunged to 22,682,63 earlier, was down 497.74 points or 2.05% at 23,775.19 a little while ago.
Deutsche Bank and Commerzbank are down 6.5% and 3.4%, respectively, hurt by concerns about the health of U.S. banking sector. Zions Bancorporation, a Utah-based lender, said it would write off $50m on two loans, while Phoenix-headquartered Western Alliance said it had started legal proceedings over a bad loan said to be worth $100m.
Rheinmetall is down 5.7%, Siemens Energy is declining 3.8%, MTU Aero Engines is down 3.2% and Daimler Truck Holding is lower by nearly 3%.
Allianz, Siemens, Infineon Technologies, Zalando, Heidelberg Materials, Munich RE, SAP and RWE are down 2 to 3%. Adidas, Scout24, Hannover Rueck and GEA Group are also down sharply.
Shares are automotive supplier Continental are rising more than 7.5%, buoyed by a rating upgrade of the stock by Deutsche Bank to "buy". Deutsche Bank Research has upgraded the stock's rating after Continental's third-quarter revenues, EBIT margin and cash flow exceeded expectations.
Beiersdorf is gaining nearly 1%, while Fresenius, Fresenius Medical Care and Henkel are up marginally.
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