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Floor trading in Frankfurt: Euro at 20-year low at $ 0.9753
Photo: STAFF / REUTERS
More and more investors are reluctant to buy shares because of acute concerns about the German economy.
The leading German index, the Dax, has fallen to its lowest level since November 2020 in the face of recession worries.
The most recent accumulation of interest rate hikes – including those by the US Federal Reserve Bank on Wednesday in particular – are also having a negative impact on stock market trading worldwide.
Most recently, the Dax lost 1.31 percent to 12,367 points.
On a weekly basis, the index has accumulated a loss of three percent.
Wall Street is also threatened with further price losses before the weekend.
With the current decline, the Dax is now 22 percent down this year.
Surprisingly high US inflation data had already slowed down the Dax recovery on Tuesday of the previous week.
They strengthened the US Federal Reserve in its restrictive monetary policy.
Investors are increasingly worried about a recession as collateral damage in the fight against high inflation.
With the purchasing manager indices, according to which the German economy also shrank surprisingly sharply in September, there was also further bad economic data.
In the euro zone, business was also worse than it had been for a long time.
Italy election weighs on markets
Another burden for the markets are the upcoming parliamentary elections in Italy, said portfolio manager Thomas Altmann from the investment advisor QC Partners.
The right-wing electoral alliance, which leads in the polls, is less EU-friendly than previous governments.
Investors should therefore be prepared for price fluctuations, especially in the case of Italian government bonds.
Nevertheless, like their German counterparts, they were in demand as an alternative to shares.
The MDax of medium-sized stocks also reached a low for the year on Friday.
In the meantime, it has lost 2.30 percent to 22,730 points and fell to its lowest level since May 2020. The Eurozone leading index EuroStoxx 50 fell by one and a half percent.
The euro continued its slide, hitting another 20-year low at $0.9753.
"Obviously, the majority on the floor doesn't believe that the European Central Bank can keep up with the fast pace of tightening by the US Federal Reserve," said Altmann.
The withdrawal of the annual targets at the real estate financier Hypoport also caused a stir.
The shares contained in the SDax of the small stock exchange stocks collapsed by 36 percent to their lowest level in five years.
The contraction in home loans appears to be accelerating as interest rates rise.
Apr/dpa/Reuters
