The Dax’s attempt to recover at the start of the week failed. On Tuesday, the previous day’s moderate gains were followed by significant losses. According to portfolio manager Thomas Altmann from QC Partners, uncertainty on the stock markets is higher than it has been for a long time. The leading index is still in correction mode and, like the stock markets in Asia, is now following the weakness of the US stock market. Wall Street and Nasdaq had turned significantly downwards again after the Xetra close. On the one hand, the issue of interest rates worries investors, and on the other hand, the worsening situation in the Middle East.
The Dax’s attempt to recover at the start of the week failed. On Tuesday, the previous day’s moderate gains were followed by significant losses. According to portfolio manager Thomas Altmann from QC Partners, uncertainty on the stock markets is higher than it has been for a long time. The leading index is still in correction mode and, like the stock markets in Asia, is now following the weakness of the US stock market. Wall Street and Nasdaq had turned significantly downwards again after the Xetra close. On the one hand, the issue of interest rates worries investors, and on the other hand, the worsening situation in the Middle East.
At the start of trading, the DAX lost 1.35 percent to 17,783.18 points. The MDax lost 1.32 percent to 26,098.73 points and the EuroStoxx 50, the leading index of the Euroregion, fell by 1.39 percent to 4915.42 points.
On its recovery path the previous day, the German stock market barometer temporarily climbed towards 18,200 points. In the course of this, however, he gave up a large part of his winnings. Chief market analyst Jochen Stanzl from broker CMC Markets warned that if the news situation continued to deteriorate, a fall to 17,700 and then 17,000 points was conceivable.
In view of strong US economic data such as the labor market report and retail sales as well as stubborn inflation, investors are increasingly asking themselves whether there will even be an interest rate cut in the world’s largest economy this year. Now central bank representative Mary Daly emphasized that the Fed is in no hurry to make cuts and that there is still a lot to do to combat inflation. In addition, the dark cloud of the Middle East escalation from the weekend is hovering over the market.
Source: Stern
