Burdened by economic worries and the monetary policy signals from the European Central Bank (ECB) this afternoon, the German stock market continues to trend downwards.
Burdened by economic worries and the monetary policy signals from the European Central Bank (ECB) this afternoon, the German stock market continues to trend downwards.
The Dax initially lost around one percent and reached its lowest level since the end of July. After that, the stock market barometer made up around half of the price losses and was recently listed 0.43 percent lower at 15,546.36 points. The MDax of the 60 medium-sized stock market stocks lost 0.07 percent to 35,919.87 points. The EuroStoxx 50 fell by around 0.5 percent.
The focus is primarily on the ECB’s pandemic program (Pepp). President Christine Lagarde’s press conference will be about possible indications of the progress of the bond purchase program, which has a volume of 1.85 trillion euros and, according to the current status, should run until at least the end of March 2022. Eventually, inflation has picked up in the eurozone, and the economy is also recovering from the pandemic. A fundamental decision is not yet expected.
The evening before, the US Federal Reserve had stated in its economic report («Beige Book») that economic momentum was weakening. In the United States, too, a reduction in Fed bond purchases is still on the cards this year.
“There are increasing signs that market participants have misjudged the overall economic situation,” said market expert Andreas Lipkow from Comdirect. Hardly any investor is likely to want to take major risks before the ECB Council meeting. “The central banks are currently in a corner, framed by recently visible price increases and a slowdown in the economy. Thus, an extremely cautious approach to future monetary policy is the order of the day, both in Europe and in the US, ”noted Lipkow.
The shares of Merck KGaA moved up to the top of the Dax with a price increase of 1.3 percent and are thus approaching the latest record high again. The pharmaceutical and specialty chemicals group is setting itself ambitious growth targets under its new boss Belen Garijo.
Gerresheimer’s shares reacted with a minus of 0.8 percent to the news that the packaging manufacturer had prematurely extended the contract of its CFO Bernd Metzner for five years.
The shares of Henkel and Beiersdorf developed in opposite directions in response to analyst studies. The Henkel shares lost 1.8 percent and are thus at the lowest level since May 2020. In contrast, the Beiersdorf shares rose by 2.1 percent.
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.
