The Frankfurt Stock Exchange on Wednesday morning: downward spiral, especially in the first hour of trading
Photo: Staff / REUTERS
More and more investors in Germany shy away from buying shares.
In view of inflation, interest rate and economic concerns, the Dax remains in a downward spiral.
For the first time since November 2020, it fell below the 12,000 point mark on Wednesday.
At the end of the first hour of trading, the leading index was down 1.44 percent to 11,964.95 points.
After a temporary recovery, the stock market barometer fell further by 2.21 percent to 11,871.24 points.
The MDax fell by 3.17 percent to 21,635.01 points, the leading euro zone index EuroStoxx 50 lost 1.6 percent in value.
“Buyers seem to be finally capitulating, and there is no end in sight to the bear market,” said Jürgen Molnar, capital market strategist at trading house RoboMarkets.
"The ice age in consumer mood will continue, a change in mood is in nirvana," said Alexander Krüger, chief economist at the private bank Hauck Aufhäuser Lampe.
The prospect of likely weaker demand in commodity markets also drove metal prices lower.
Copper fell by up to 1.8 percent to $7,220 a ton.
Nickel and aluminum prices also fell.
The previous evening, demands from central bankers for more interest rate hikes had had a negative impact on Wall Street because they were increasing concerns about a recession worldwide.
The fear of a deeper energy crisis is also rampant: concerns about the stability of the energy network have recently become greater, for example because of the leaks in the two Baltic Sea gas pipelines Nord Stream 1 and Nord Stream 2.
There were major price losses in the banking sector, with Deutsche Bank trailing behind the Dax with minus 4.4 percent.
Commerzbank from the MDax was hit just as badly with a minus of five percent.
As announced the evening before, the Polish subsidiary mBank will also burden the bank in the third quarter.
The reason for this is an additional provision amounting to the equivalent of around 490 million euros.
winners in the healthcare industry
Winners were extremely rare on Wednesday, but there were a few positive exceptions, particularly in the healthcare industry.
The stocks of Merck KGaA, for example, were one of the few stocks in the Dax with a plus of 0.4 percent, alongside the almost one percent higher stocks of the laboratory equipment supplier Sartorius.