Before the great decline on the futures exchanges, the recent slide in the Dax continued on Friday. Negative impetus came from Wall Street, which recorded renewed losses, particularly in technology stocks, the previous evening. After the weak start, the leading German index continued to fall in early trading and was last 1.70 percent lower at 12,736.88 points. With the shock of persistently high inflation in the USA and the prospect of serious action by the US Federal Reserve, investors’ concerns about inflation and interest rates have increased again this week.
Before the great decline on the futures exchanges, the recent slide in the Dax continued on Friday. Negative impetus came from Wall Street, which recorded renewed losses, particularly in technology stocks, the previous evening. After the weak start, the leading German index continued to fall in early trading and was last 1.70 percent lower at 12,736.88 points. With the shock of persistently high inflation in the USA and the prospect of serious action by the US Federal Reserve, investors’ concerns about inflation and interest rates have increased again this week.
The MDax of medium-sized stocks lost 2.23 percent to 23,910.89 points in early Friday trading. The Eurozone leading index EuroStoxx 50 lost 1.6 percent. Some positive economic data from China, where retail and industry have recently developed unexpectedly well, would hardly be rewarded on the market, according to stockbrokers. However, the oil refining industry of the world’s largest oil importer remained under pressure.
In the further course of the day, there could be larger fluctuations again due to the large decline. Investors often try to move prices in a direction that is favorable to them
In the German leading index there were only losers in the morning. The Swiss Post papers with the largest discounts stood out. They fell to a low since mid-2020 and most recently lost more than six percent. The weak figures and a withdrawn earnings forecast by US competitor Fedex caused the price to slide. As justification, the Americans had referred to the gloomy economic environment.
Numerous real estate stocks were also moving according to large sector studies by Goldman Sachs, JPMorgan and Barclays. The very interest-sensitive sector is currently under pressure due to the prospect of further increases in central bank interest rates and is in a head-to-head race with retailers for the weakest sector of the year. The sector was also weak throughout Europe on the last trading day of the week. In Germany, Vonovia, Deutsche Wohnen, LEG & Co were all in the red after the sometimes skeptical votes of analysts.
TAG Immobilien, however, climbed against the trend at the top of the MDax by two and a half percent – Barclays expert Sander Bunck raised his vote by two notches to “Overweight”.
Shares in the ailing utility Uniper remained in the downward spiral and fell to a record low of more than 15 percent on the last MDax place. Chemical stocks such as BASF, K+S and Wacker Chemie also attracted attention with high losses of up to seven percent – the industry is the largest gas consumer in Germany and has been hit hard by the energy crisis.
According to a skeptical study by the analysts from Cowen, shares in the sporting goods manufacturer Adidas also continued their descent to another low since 2016. The minus here was 1.7 percent.
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.
