Germany equities were lower at the close on Tuesday, as losses in the Transportation & Logistics, Media and Construction sectors propelled shares lower. At the close in Frankfurt, the DAX fell 1.14%, while the MDAX index declined 1.58%, and the TecDAX index lost 1.06%. Declining stocks outnumbered rising ones by 493 to 224 and 60 ended unchanged on the Frankfurt Stock Exchange. The DAX volatility index, which measures the implied volatility of DAX options, was up 1.16% to 18.36. Major equities across the globe closed in red yesterday on fears of global economic slowdown and waning influence from weekend headlines on Sino-U.S. trade truce. European market was also saw bearish influence from Brexit woes and protests in France over fuel tax hikes.
Major Equities Trade in Red Amid Fears of Global Economic Slowdown
Global stocks sank and the dollar fell on Tuesday as a flattening Treasury yield curve sparked recession warnings, while optimism that the U.S. and China would quickly resolve their trade dispute dwindled. Benchmark Treasury 10-year yield fell to its lowest point since mid-September. The spread between the 10-year yields over its two-year counterpart also shrank to the smallest since the start of the financial crisis in January 2008, signaling to some investors an approaching U.S. economic slowdown. This move triggered a bearish rout in US Wall Street with Dow Jones Index losing nearly 700 points. All major Asian indices have declined over 0.50% ahead of European market hours.
While France PM Philippe suspended fuel tax hike and few other energy and emission related hikes for next six months to give people more time to get adjusted new to new rules and regulations, fears of global economic slowdown is high in market which has resulted in investors moving funds from risky assets to safe haven instruments. DAX Futures trading in international market ahead of European market hours was up by 0.34% on the day despite a highly prevalent bearish investor sentiment. DAX index may open positive but is likely to trade with bearish bias gripped by wide spread fear of economic slowdown and influence from international markets.