Coronavirus mutation worries eased as DAX recovers.
In the financial world, the euro took a significant hit against the US dollar on Tuesday afternoon. One euro was worth just $1.2177, marking a notable decrease. This downturn could be attributed to the emergence of a new mutation of the coronavirus, which has caused travel restrictions and sparked concern among investors since the weekend.
The European Commission has recommended that EU member states lift blanket travel bans, but non-essential travel to and from the UK should be discouraged. Despite these travel restrictions, it is crucial to ensure that essential travel is allowed and disruptions to supply chains are avoided.
The stock market, however, painted a different picture. Industrial stocks such as Infineon, Bayer, and Beiersdorf were the biggest gainers on Tuesday. The Frankfurt Stock Exchange witnessed a surge in the shares of companies like Fresenius Medical Care, Sartorius preference shares, Porsche, Zalando, and Merck on Monday, before the EU Commission's Tuesday recommendations on lifting blanket travel restrictions.
The oil price, on the other hand, did not benefit from the easing of tensions. A barrel of North Sea Brent crude cost $50.48 at 5 p.m. German time on Tuesday, down $0.43 or 0.84 percent from the previous day's close.
The Frankfurt Stock Exchange, located in the heart of Germany, saw a mixed day of trading. While many stocks, including Infineon, Bayer, and Beiersdorf, saw significant gains, Deutsche Telekom and Volkswagen were the only stocks in the red on Tuesday, albeit by less than 0.1 percent. The DAX index closed at 13,418.11 points on Tuesday, up 1.30 percent from the previous day's close.
[Photo: The Frankfurt Stock Exchange, courtesy of dts Nachrichtenagentur]
