Stock exchange in Frankfurt: Dax on a downward slide – fear of recession

Frankfurt Stock Exchange
Dax on a downward slide – fear of recession is spreading

The Dax is the most important stock index in Germany. Photo: Fredrik von Erichsen/dpa

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The Dax slipped below the 14,000 point mark on Monday due to growing concerns about interest rates and the economy. The leading German index only stabilized at 13,870 points in the morning, most recently it was down 1.02 percent at 13,998.50 points.

The Dax slipped below the 14,000 point mark on Monday due to growing concerns about interest rates and the economy. The leading German index only stabilized at 13,870 points in the morning, most recently it was down 1.02 percent at 13,998.50 points.

There were also clear losses for other indices: the MDax lost 1.00 percent to 30,491.03 points. The Eurozone leading index EuroStoxx fell by 1.3 percent.

The re-election of French President Emmanuel Macron did not help share prices on Monday, and the Cac 40 also fell significantly in Paris. On the contrary, fears of a rapid increase in key interest rates in the USA and possibly soon higher interest rates in the euro zone continue to have the markets under control. In combination with high inflation, the Ukraine war, stressed supply chains and the worsening corona situation in China, there are concerns about a recession.

In the morning, the focus is on the German Ifo business climate, which economists say should have clouded over again. Prices are rising sharply and are a burden on consumers and companies if they cannot pass on the higher costs, as Dekabank says in an outlook. “At the same time, we are seeing the first signs of delivery failures as a result of the war and the sanctions.” The re-election of French President Emmanuel Macron did not help stock prices on Monday.

Over the course of the week, quarterly figures from US tech giants Microsoft, Alphabet, Meta, Apple and Amazon are likely to be viewed particularly critically by investors.

In the gloomy market environment, the stocks of energy companies, which were seen as defensive in times of the advancing energy transition, were among the positive exceptions. In the Dax, RWE shares climbed to the top position with an increase of 1.4 percent. In the SDax, the 1.6 percent higher shares of the wind power specialist Nordex were in demand.

In contrast, the SAP shares in the Dax were among the bigger losers with minus 2.2 percent. Several price target reductions and the deletion of the buy recommendation from Bankhaus Metzler weighed on the software group’s papers. The Metzler analyst Holger Schmidt justified this step with mixed quarterly results and earnings risks.

Daimler Truck, on the other hand, was supported by an analyst comment in the Dax. They rose by around one percent after the investment bank Oddo BHF had commented positively on the commercial vehicle manufacturer’s stocks. With a price target of 30 euros, the expert Anthony Dick sees around 16 percent upside potential.

Rheinmetall shares fell by 1.2 percent. As the “Welt am Sonntag” reported, the armaments company has applied for the timely delivery of 100 Marder armored personnel carriers to Ukraine. However, the stock had risen significantly since the Russian invasion of Ukraine – due to planned western investments in defense.

dpa

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