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Trader at the Frankfurt Stock Exchange
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Arne Dedert / dpa
After the heavy price losses at the end of the week, the sell-off on the stock market continues.
In view of high inflation, fear of interest rates and the associated worries about a recession, there seems to be no improvement in sight at the moment.
The Dax lost 1.61 percent in early trading to 13,541 points.
The May low of 13,380 points is approaching.
The MDax fell on Monday morning by 1.59 percent to 28,311 points.
The Eurozone leading index EuroStoxx was also clearly in the red at 1.8 percent.
After inflation in the USA was reported at its highest level in around 40 years on Friday, market participants are concerned that further and faster interest rate hikes by the US Federal Reserve could follow.
The Fed's next interest rate meeting is on the agenda for Wednesday, at which further tightening of monetary policy is considered agreed.
The decisive factor, however, is whether the currency watchdogs will step up the pace even more than previously expected.
An additional concern is the threat of lockdowns in China, where mass tests were carried out in Beijing and Shanghai over the weekend due to renewed corona outbreaks.
The fear is that the Covid strategy will further damage the economy and global supply chains.
"Although there have recently been far-reaching easing in Shanghai," says the monthly report from the Federal Ministry of Economics.
"But if there are lockdowns of this magnitude again in China, worsening supply bottlenecks and a further slowdown in world trade cannot be ruled out."
The Russian war against Ukraine remains a risk for the economy.
"The German economy has stabilized for the time being after the war shock," the ministry wrote.
"Nevertheless, insecurity has remained high since the beginning of the war."
svs/dpa
