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Petroleum

German Finance Minister Replacement Sparks Market Volatility

Strategic Insights

— 2 min read

The replacement of German Finance Minister Mr Oskar Lafontaine with Mr Hans Eichel sparked a mixed reaction in the stock market, with the Frankfurt stock market experiencing a five percent jump, while London's FTSE-100 Index reversed most of its gains. The replacement led to a profit-taking frenzy, with the DAX index in Frankfurt experiencing a significant surge, while the FTSE-100 Index in London dropped 53.5 points. Asian woes also weighed on Reckitt & Colman's shares, which closed down 41p. Meanwhile, JD Wetherspoon reported a 20 percent rise in pre-tax profits, thanks in part to Chancellor Gordon Brown's decision to freeze beer duty until next year.

Key Takeaways:

  • The replacement of German Finance Minister Mr Oskar Lafontaine with Mr Hans Eichel led to a five percent jump in the Frankfurt stock market, but failed to halt profit-taking in London.
  • The FTSE-100 Index in London dropped 53.5 points, while the DAX index in Frankfurt surged due to the replacement.
  • Reckitt & Colman's shares closed down 41p due to Asian woes.
  • JD Wetherspoon reported a 20 percent rise in pre-tax profits, thanks to Chancellor Gordon Brown's decision to freeze beer duty until next year.
  • Glenmorangie's shares fell 102p after a profit warning, with the company expecting profits to be around £1.1 million below current estimates.
  • Meconic's profit warning sent shares into a dive, with shares falling 14p to 117p.
  • Regal Hotels saw profits ahead, but warned of trading decline in its food and drink operations and a potential disruption in 1999 due to refurbishment.
  • The oil sector stalled, with Saudi Arabia, Iran, Venezuela, and Mexico agreeing to cut production and bolster oil prices, but Thursday's strongest risers in the oil sector failed to maintain their rally.

Statistics:

  • The Frankfurt stock market jumped five percent due to the replacement of German Finance Minister Mr Oskar Lafontaine.
  • The FTSE-100 Index in London dropped 53.5 points after reversing most of its gains.
  • Reckitt & Colman's shares closed down 41p due to Asian woes.
  • JD Wetherspoon reported a 20 percent rise in pre-tax profits.
  • Glenmorangie's shares fell 102p after a profit warning.
  • Meconic's shares fell 14p to 117p after a profit warning.
  • Regal Hotels shares fell 3p to 26p due to trading decline in its food and drink operations.
  • Enterprise Oil's shares gained 19p to 341p due to full-year figures exceeding analysts' expectations.
  • Eurotunnel's shares gained 11p to 98p ahead of its full-year results.

Sources:

  • No specific sources are mentioned in the article.

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