DAX index fell into the red abyss, oil prices dropped significantly today

Oil prices falling, DAX index goes to minus

In brief: German stock market went into the red zone, oil prices have fallen sharply.

Bidding on the German market were quite spineless. During the day the indices repeatedly made attempts to growth, but on the session closed in a slight minus. The controversial macroeconomic statistics in Europe does not market to determine the further direction. In Germany, the index of business activity in the service sector in June increased slightly to 54.8, being better than expectations.

Good retail sales data in the euro area have also provided some support for markets. Compared with last year sales in May rose by 0,3%, while the projected decrease by 0,3%. On the other hand, business activity in the service sector in the UK, France and Italy slowed in June. Toward the close of trading the German DAX index fell 0.31% to 5,816.20 points mark, and the TecDAX index retreated 0.31% to 723.22 points. Prices for futures for Brent crude fell slightly to U.S. $ 71.20 per barrel, while copper futures rose to $ 292.55 per pound. German sovereign bonds yields fell slightly. Currency pair EUR / USD fell 0.27% and is trading at around 1.2532. The second largest construction company in Germany’s Bilfinger Berger postponed the IPO of its Australian subsidiary Valemus until early next year due to lack of demand for shares. According to the company’s management, the desired price 2,20-2,50 Australian dollars per share is unattainable in the current market conditions. Bilfinger Berger shares lost 3.25%. Shares of German chip manufacturer Infineon Technologies rose 0.57% against the background of increasing the fair value of shares to 5.25 euros from 5.10 euros by analysts of the bank UBS. The largest phone company in Germany, Deutsche Telekom added 0.16% in market capitalization due to the increase of investment bank Credit Suisse rating to “neutral” from “worse than the market.

Ukrainian Globalist
2010-07-05 16:46, Economics.

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