German shares extend losses on recession signal

Monday, 23. September 2019 09:35

Investors sold off stocks in the Eurozone on Monday and risk aversion strengthened upon the release of IHS Markit's report about the activity of the private sector in Germany. The preliminary reading of the purchasing managers' index came in at 49.1 or 2.6 points lower than in August and below the neutral 50 for the first time since May 2013. The manufacturing component nosedived 2.1 points to 41.4. It was last lower more than ten years ago. The ongoing contraction in the sector has prompted fears of a recession.

The DAX index was 1.09% in the red at 9:35 am CET on the Frankfurt Stock Exchange, led by Deutsche Bank's 3.75% plunge. Infineon followed with at 2.44% loss, while Covestro, Bayer and Daimler all lost more than 2%. The French CAC 40 also went deeper into negative territory, trading 0.72% down for the day. The FTSE MIB was 1.03% in the hole in Milan.

The euro retreated 0.38% to $1.09779 and 0.18% to £0.88188.

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