DAX sinks deeper on BMW's profit warning

Wednesday, 20. March 2019 11:41

The German blue-chip stock index extended losses in morning trade on Wednesday as the automotive sector was struck by Bayerische Motoren Werke AG's outlook downgrade. The maker of luxury cars cited Brexit, trade tensions on an international scale, the rise in competition and technology challenges. BMW AG added it intends to slash costs by €12 billion through 2022. The company was also hurt by the strictness of the WLTP emissions standards imposed last year.

The DAX dipped 1.21% at 11:40 am CET, still led by Bayer. The manufacturer of chemicals and pharmaceuticals plummeted 12.5% to €60.99 per share following a landmark verdict in a cancer case. Earlier it touched €60.49, the lowest mark since January 3. BMW dropped 4.54% to €72.28 per share. The session low, €71.28, was last seen on February 20. Volkswagen declined 2.42% to €144.32 per share.

Giant automotive parts supplier Continental AG was next in the list of the worst performers. It lost 2.31% to €141.75. Deutsche Bank AG was down 2.29% at €7.844 after tumbling to as low as €7.79 on concern about the outcome of its negotiations regarding a potential merger with Commerzbank.

Related Links: Deutsche Bank AGBMW AGContinental AGBayer AGVolkswagen AG
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