Many investors are still holding back, as they wait for the US Federal Reserve Chairman Jerome Powell’s speech on further monetary policy on Friday. The Dax extends its previous day’s losses. DWS shares plummet.
Europe’s investors have not let go of the fear of an economic slowdown as a result of rising corona numbers. Of the Dax lost 0.4 percent to 15,794 points on Thursday. Rising prices and corona numbers are depressing the mood of German consumers more than expected. According to analyst Claus Niegsch from DZ Bank, the recovery in many industries after the pandemic could take significantly longer than in the times of the financial crisis in 2008. This is mainly due to the lower consumer spending by private households caused by the lockdowns. Many investors also did not want to take any risk ahead of the US Federal Reserve Chairman Jerome Powell’s speech, expected on Friday, regarding the possible reduction in bond purchases.
Among the values in the first stock market league, the papers of Deutsche Bank were particularly punished, which with a minus of 2.3 percent were among the biggest losers in the Dax. According to media reports, both the Federal Financial Supervisory Authority (Bafin) and several US authorities are investigating the sustainable investment products of the fund subsidiary DWS. The supervisors investigated the suspicion that the asset management company was too lax with criteria for sustainable investments. The shares of DWS listed in the S-Dax collapsed 13.7 percent. One of the top favorites in the S-Dax was Fielmann’s titles with a premium of three percent. The optics company has benefited from the withdrawal of the restrictions to contain the corona pandemic and recorded a jump in profits in the first half of the year and increased its profit forecast for the second time within a few weeks. Shares in French media giant Vivendi rose 2.5 percent in Paris. The label Universal Music Group, which is aiming to go public in September, expects sales to grow by more than ten percent in 2021, and the operating result should increase by a good 20 percent. The US stock exchanges stopped their record hunt for the time being after an attack in Kabul. In addition, company balance sheets and economic data did not paint a uniform picture. Investors took profits ahead of the traditional Jackson Hole Federal Reserve Conference. Of the Dow Jones went half a percent lower from the trade.