Stock exchange in Frankfurt: Dax still under pressure - at times below 12,000 points

The Dax remains in the quagmire of inflation, interest rate and economic concerns.

Stock exchange in Frankfurt: Dax still under pressure - at times below 12,000 points

The Dax remains in the quagmire of inflation, interest rate and economic concerns. For the first time since November 2020, it fell below the 12,000 point mark on Wednesday, which is of great psychological importance. In the afternoon, however, he was able to reduce his losses and surpass the round mark again. Most recently, the discount was 0.63 percent to 12,062.60 points.

The MDax fell by 1.71 percent to 21,960.29 points and the Eurozone leading index EuroStoxx 50 lost 0.8 percent in value. A fairly robust start to trading became apparent on Wall Street, which helped the indices in this country to reduce the losses. While the Dow Jones Industrial was valued slightly higher, the technology-heavy Nasdaq 100 showed a slight minus.

According to the market observer Christian Henke from Broker IG, the President of the Federal Reserve of St. Louis, James Bullard, has started the next wave of selling with his latest statements from the previous evening. He and other US central bankers reiterated their calls for more rate hikes, fueling fears of a recession.

"There is no news that could stop the downward slide," says Henke pessimistically. So far, the Dax has lost 1.8 percent again this week. Since the intermediate high a good two weeks ago, its minus has added up to eleven percent or around 1500 points. Concerns about the stability of the energy network have recently added to the burden, because discovered leaks in the Baltic Sea gas pipelines have been linked to a possible act of sabotage.

On the company side, there were heavy price losses in the banking sector, as shown by the 5.5 percent lower shares of Deutsche Bank as the Dax tail light. In addition to the general economic concerns, companies in the financial sector were also affected by the fact that, according to the US Securities and Exchange Commission (SEC), 16 of them should pay a fine of a good 1.1 billion US dollars.

The shares of Commerzbank were hit just as badly with a minus of 5.4 percent. As was announced the evening before, the Polish subsidiary mBank will continue to charge the financial institution in the third quarter because of an additional provision in the equivalent of around 490 million euros.

Larger Dax losers also came from the insurance industry, with losses of 2.8 percent at Allianz and 2.1 percent at Munich Re. Concerns about major losses from Hurricane Ian, which is en route to the US state of Florida, also had a negative impact here.

Things looked particularly bleak in the steel sector because of an industry study by the US bank JPMorgan, which was pessimistic about the profitability of steel products. Thyssenkrupp stocks fell 11 percent after analyst Luke Nelson reinstated the underweight rating. The price losses at Salzgitter were similarly high.

On the corporate side, rising prices were extremely rare on Wednesday, with positive exceptions coming from the health sector, for example. Above all, this applied to Morphosys with a price jump of 16 percent. After a successful study by the US group Biogen with the Alzheimer's drug lecanemab, analyst James Gordon from JPMorgan also drew positive conclusions for the antibody gantenerumab, which the company is researching together with Roche. According to the expert, this follows the same mechanism.

The euro fell again to a 20-year low on Wednesday. Somewhat recovered from this, $0.9586 was paid for the common currency in the afternoon. The European Central Bank (ECB) had set the reference rate at $0.9644 the day before.

On the bond market, the current yield rose from 2.01 percent on the previous day to 2.21 percent. The Rex pension index fell by 1.03 percent to 126.89 points. The Bund future rose by 0.35 percent to 137.38 points.