Following a final loss of 0.4% yesterday, the DAX 30 opened down this morning and having dropped further on falling commodities prices, is currently sitting at a loss of 0.32%. Geopolitical uncertainty surrounding the French presidential elections and a lack of clear direction in economic policy from Trump’s new administration in the U.S. are, minus any other clear catalysts, also casting a shadow on sentiment. German GDP growth surpassing that of the UK in 2016, 1.9% to 1.8%, propelling the economy to the top of the developed nations leaderboard for economic growth last year, doesn’t seem to have provided much positive impetus for the DAX.
Chemicals company BASF is the heaviest faller today, down 2.6% at the moment despite earnings results released this morning showing that profits for 2016 had doubled compared to 2015. Net profit for the fourth quarter beat analysts’ expectations for 624 million euros, coming in at 689 million euros. BASF also offered forward guidance for 2017 that it expects sales to grow by a minimum of 6% and earnings before interest, tax and one-off expenses to grow between 1% and 10%. The dividend proposal of 3 euros per share was also marginally up on last year’s 2.9 euros. An 18% drop in net sales over 2016 has, however, clearly disappointed investors despite forecasts having been for slightly more, provoking today’s current loss.
The DAX 30’s two banking constituents are not having the best of Fridays so far with Commerzbank down 1.3% and Deutsche Bank 0.32%, while insurer Allianz has dipped 0.12%. Fresenius Medical Care and Fresenius are also showing respective falls of 1.02% and 1.16%. Mass media company Prosiebensat 1 Media has fallen by 1.7%. With commodities and materials prices down today, Heidelbergcement has dropped 0.89% and steel maker ThyssenKrupp 1.15%.
Among the automakers, BMW is down 0.37% at the moment, though Daimler has registered a modest 0.13% gain and Volkswagen an incremental 0.04%. While still less than 1%, Deutsche Boerse so far has the strongest gain and has risen by 0.89%, followed by Lufthansa, up 0.66% and Deutsche Telekom with a gain of 0.61%.