Germany’s benchmark DAX index rebounds

Frankfurt, Jan 6 (IANS) The benchmark DAX index at Frankfurt Stock Exchange on Tuesday rebounded slightly by 26.66 points, or 0.26 percent, on the basis of over four percent plunge of the previous day.

The blue-chip index opened nearly 100 points higher than the previous trading day’s closing, yet then fell sharply to the day’s lowest level of 10,173.52 points, before the index recovered in the afternoon and closed up at 10,310.10 points, reports Xinhua.

The US Department of Justice on Monday filed a civil lawsuit against Volkswagen for allegedly violating the Clean Air Act by installing illegal devices to impair emission control systems in nearly 600,000 diesel cars, which might result in billions of penalties for that German largest automobile manufacturer.

Consequently, the share price of Volkswagen on Tuesday fell the most by 3.96 percent, followed by K+S and Infineon.

Healthcare company Fresenius Med Care advanced the most by 5.87 percent, followed by Lufthansa and RWE, whose share price added by 3.11 percent and 2.11 percent respectively.

Volkswagen was the most traded share of the day with a turnover of around $394.01 million.

US stocks end mixed after heavy sell-off 

The US stocks closed mixed after wavering between small gains and losses on Tuesday, as Wall Street attempted to recover from Monday’s plunge amid falling oil prices.

The Dow Jones Industrial Average edged up 9.72 points, or 0.06 percent, to 17,158.66. The S&P 500 rose 4.05 points, or 0.20 percent, to 2,016.71. The Nasdaq Composite Index fell 11.66 points, or 0.24 percent, to 4,891.43, Xinhua news agency reported.

Oil prices continued to slide on Tuesday despite rising tensions in the Middle East, with both the US oil and Brent crude prices dropping more than 2 percent, as the US dollar strengthened. Crude prices had witnessed big swings lately and traded near multi-year lows.

Saudi Arabia on Sunday cut off diplomatic ties with Iran after angry protesters stormed its embassy in Tehran, the capital of Iran, to protest against Saudi’s execution of prominent Shiite cleric Sheikh Nimr Baqir al-Nimr.

Analysts said the heightened geopolitical tensions sent traders scurrying from stocks into safe haven assets.

There are no major economic data due to be out on Tuesday. Traders were looking to the key December employment report scheduled to release on Friday, the first jobs report since the US Federal Reserve’s mid-December decision to raise its interest rates.

The US stocks slumped on Monday, the first trading day of 2016, as global market rout and geopolitical tensions between Iran and Saudi Arabia rattled the nerves of investors.

Overseas, Chinese stocks managed to end the day with just a slight loss after a heavy plunge in the afternoon session Tuesday, with the benchmark Shanghai Composite Index going down 0.26 percent to close at 3,287.71 points.

European equities rebounded mildly Tuesday following previous session’s sharp decline, with British benchmark FTSE 100 Index rising 0.72 percent.

Tokyo shares open higher

Tokyo shares opened the trading Wednesday slightly higher as sentiment here was stabilised following a flat close in the overnight US equity market after a global downturn since the start of the new year.

At 9.15 a.m., the 225-issue Nikkei Stock Average inched up 45. 74 points, or 0.25 percent, from Tuesday to 18,419.74, Xinhua news agency reported.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 5.23 points, or 0.35 percent, to 1,509. 94.

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