Frankfurt Stock Exchange news update. - The outcome of the European elections impacts the Dax index.
Medium-sized company index, MDax, witnessed a decrease of 0.55% reaching 26,714.59 points. The EuroStoxx 50 index also fell by 1.1% due to an increased uncertainty in France. The French President, Emmanuel Macron, is planning to establish clear political connections via the re-election of the National Assembly.
"European elections bring political instability to the stock market"
Right-wing political parties made impressive strides during the EU elections. According to market analyst Jochen Stanzl of broker firm CMC Markets, the rise of right-wing politics in Europe means that political instability has now returned to the stock market. Macron's ambition would be to secure a larger majority in the parliamentary assembly with the re-elections; however, achieving this majorities might not be a straightforward process as his party appears to be diminishing in strength.
In Germany, the traffic light coalition's uncertain performance caused a ripple effect in the energy sector. The Greens, who advocate the German energy transition, incurred substantial losses in the European voting the previous day.
The shares of Nordex, a wind turbine manufacturer, suffered a 2.1% decline. Additionally, RWE, a Dax company, and SMA Solar experienced drops of 1.4% and 1.8%, respectively, due to the impact of higher taxes.
Porsche AG's stocks were sold without dividends following their annual general meeting held on Friday. Investors needed to consider giving up 2.31 euros and its consequential effect on price value.
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The Frankfurt am Main-based DAX, Germany's leading index, experienced a 0.3% drop during the trading week, influenced by the European election outcomes. JPMorgan Chase, a prominent international bank, noted a 0.4% decrease in its Frankfurt-traded shares. The Eurozone's stock exchanges, including Frankfurt, were impacted by the election results. With the French President, Emmanuel Macron, aiming to strengthen his political connections, uncertainty in France led to a 0.9% decline in the Euro Stoxx 50 index. The German energy sector felt the ripple effects of the election results, leading to losses for companies like Nordex, RWE, and SMA Solar. Despite Porsche AG's annual general meeting, where shares were sold without dividends, the stock price was not significantly affected due to minimal investor interest in the election's aftermath.
