The fear of interest rates fueled by US Federal Reserve Chairman Jerome Powell continued to weigh on the German stock market at the beginning of the week. In the wake of the gloomy international stock market situation, the Dax slipped further by 1.26 percent at the end of the first hour of trading on Monday. With 12,807.76 points, he was further away from the 13,000 mark. In the second German stock exchange league, the losses were somewhat lower, as the MDax showed with a discount of 0.70 percent to 25,344.04 points. On the pan-European stage, on the other hand, the pressure to sell was great, with the Eurozone index EuroStoxx 50 falling by 1.4 percent.
The fear of interest rates fueled by US Federal Reserve Chairman Jerome Powell continued to weigh on the German stock market at the beginning of the week. In the wake of the gloomy international stock market situation, the Dax slipped further by 1.26 percent at the end of the first hour of trading on Monday. With 12,807.76 points, he was further away from the 13,000 mark. In the second German stock exchange league, the losses were somewhat lower, as the MDax showed with a discount of 0.70 percent to 25,344.04 points. On the pan-European stage, on the other hand, the pressure to sell was great, with the Eurozone index EuroStoxx 50 falling by 1.4 percent.
Powell had already put the markets under considerable pressure with his statements at the central bank conference in Jackson Hole on Friday. According to Bankhaus Metzler, he has firmly reaffirmed his intention to tighten monetary policy enough to bring inflation down to the target level of two percent. He admitted that this is likely to mean “some pain for households and businesses”.
Previously, some market participants had harbored hopes that the Fed might revise its hawkish stance as the economy slows. “However, Powell clearly rejected this,” wrote Metzler analyst Eugen Keller.
The gas stop announced by Russia is also causing investors to become increasingly nervous again. Due to maintenance work, no Russian gas should flow to Germany for three days from Wednesday. There remains uncertainty as to whether deliveries, which have already been drastically reduced recently, will be resumed after September 2nd.
In the case of individual shares, the 0.5 percent higher shares in the VW group holding company Porsche SE were a positive exception in the Dax. News about the IPO of the VW sports car subsidiary Porsche AG is expected here soon. Bayer, on the other hand, posted the largest daily loss in the Dax. Study data on the drug candidate Asundexian were not a positive price driver for the chemical and pharmaceutical company, as the minus of 2.9 percent showed. Although experts tended to rate the phase II data as slightly positive, the leaps of joy that some had apparently hoped for did not materialize. Study data on the kidney drug finerenone also did not bring any relief in terms of course.
Elsewhere, bigger losers came from interest-rate-sensitive industries, including the high-growth technology sector, as Infineon’s shares weakened 2.6 percent.
RWE also followed the weak European environment for energy stocks at a discount of 2.1 percent. Discussions arose again about a possible “excess profit tax” for energy companies. Especially in the capital-intensive growth area of renewable energies, rising interest rates are also seen as a stumbling block.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
