Markets

Downward wave in the stock markets


The shadow of the bear, which stands for falling prices, and that of the bull on the pavement in front of the Frankfurt stock exchange
Picture: dpa

The Dax falls to its lowest level in four weeks. Bad news from economies and businesses is responsible for this. Donald Trump also causes uncertainty.

EA whole load of bad news depressed stock indices in Europe and America on Thursday. The fact that the German economy shrank by 10.1 percent in the second quarter, significantly more than feared, gave the German share index Dax a first downward push in the morning. When the American stock index Dow Jones opened 2 percent lower in the afternoon, the Dax entered a second downward wave and only found a stop at the daily low of 12,260 points, a decrease of more than 4 percent. The Dax only recovered slightly until close of trading, closing 3.5 percent lower on the day at 12,379 points, the lowest level in four weeks.

Donald Trump also caused a lot of uncertainty among investors. The American president brought a postponement of the November election after the US economy shrank 32.9 percent year-on-year in the second quarter. In addition, some reports from European companies weighed on equity markets, while some American companies surprised positively.

Stock market recovery over?

The phase of the stock market recovery, which led the Dax from the Corona low in March at around 8,300 points to almost 13,200 points two weeks ago, could be over. On Thursday the VW share was the biggest loser in the Dax with a minus of 7 percent. The German car manufacturer reported a higher-than-expected loss in the second quarter, its French competitor Renault even a record loss. Healthcare company Fresenius, which suffered similar price losses as VW in the Dax, also disappointed with its quarterly figures presented on Thursday.

DAX ®: current price and news – FAZ.NET

In the M-Dax, the share of the silicon wafer manufacturer Siltronic was the biggest loser with a price loss of 8.5 percent after it announced weak business for the second half of the year. Meanwhile, the euro continued to rise against the dollar, costing more than $ 1.18 for the first time since 2018. However, the downward wave on the American stock markets initially ended on Thursday. This was also due to the fact that the chip company Qualcomm, the delivery service UPS and the consumer goods manufacturer Procter & Gamble reported surprisingly good business figures. Investors also liked the Johnson & Johnson pharmaceutical company to begin clinical trials of its corona vaccine candidate. The Dow Jones then reduced its daily loss to 1 percent. The Nasdaq index almost offset its initial losses.

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