Turbulence on the stock exchange: European energy stocks with particularly high losses

Turbulence on the stock exchange: European energy stocks with particularly high losses
Written by insideindyhomes

Dhe turbulence on the financial markets hit the share prices of European energy suppliers particularly hard on Corpus Christi. In addition to the increased key interest rates in America, England and Switzerland, utility stocks were hit by Russia’s throttled gas supply via the Nord Stream 1 pipeline, which was reduced to just 40 percent. On the German stock market, the share of the chemical company BASF, whose production at the headquarters in Ludwigshafen is at risk due to the reduced gas deliveries, fell by 6.4 percent to 45.66 euros by the close of trading on Thursday, the lowest price since May 2020. Similar to BASF lost on Thursday, among the Dax values, was the share of the energy supplier Eon.

In the M-Dax, the price of Uniper, a company that emerged from Eon, even fell by 9.7 percent. Dax and M-Dax ended trading on Thursday with significant losses. The Dax closed with a strong minus of 3.3 percent to 13,038 points and is thus rapidly approaching its low for the year from March of this year at 12,831 points.

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Energy suppliers were also in the spotlight on other European exchanges. While the Euro Stoxx 50 lost 3 percent on Corpus Christi, electronics companies and energy-dependent companies such as Philips (minus 9.7 percent), BASF, Eni and Siemens were particularly under selling pressure. The price of oil also slipped. After paying 125 dollars for 159 liters of Brent on Tuesday, it was only 116 dollars at times on Thursday.

Stock prices in America under pressure

The wind turbine manufacturer Nordex has not been able to benefit from the feared energy shortage in Europe for a long time. Now Deutsche Börse is also punishing him radically. As the stock exchange announced on Wednesday evening as the index operator, the Nordex share will be “extraordinarily” removed from the Tec-Dax and S-Dax, starting next Monday, June 20th. Nordex violated basic criteria for index memberships such as the timely publication of quarterly reports, the stock exchange justified. Nordex explained the late publication of business figures with a hacker attack in March that paralyzed the company for a while. In 2020, Deutsche Börse tightened its rules after it had been unable to exclude Wirecard from the Dax for months despite filing for insolvency.

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Even before the stock exchange officially announced Nordex’s expulsion on Wednesday evening, the Nordex share price had fallen significantly, by 8 percent on Tuesday alone. On Corpus Christi, the first trading day after the announcement of the expulsion, a profiteer reacted: SMA Solar, which is returning to the Tec-Dax, gained 1 percent in value in a weak market. On the other hand, the share of Medios, the special pharmaceutical company that is being included in the S-Dax for Nordex, lost around 3 percent with the entire market.

Share prices in America were also under pressure on Thursday, after the stock exchanges had reacted to the Fed’s rate hike with price gains on Wednesday. On Thursday, the Dow Jones index of industrial stocks fell by 2.4 percent to 29,927 points by the end of trading, ending a trading day below 30,000 points for the first time since January 2021. The S&P 500 stock index lost 3.3 percent. Tour operators such as Carnival, Norwegian Cruise and Royal Caribbean lost the most value, each losing 11 percent. Tesla shares closed Thursday down 8.5 percent. The index of the technology exchange Nasdaq fell by 4.1 percent to 10,646 points.


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