The fall in the Nasdaq and Dow Jones prices causes price losses in the Dax

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Stock exchange in Frankfurt am Main:

The price slide in the USA puts the Dax under pressure again

Photo: Arne Dedert / dpa

Another setback: The

closed the rather insignificant Xetra trade on Tuesday with a small plus of 0.3 percent, but slipped significantly in late trading.

The reason for the price weakness are the renewed heavy losses on the Nasdaq and the Dow Jones.

Just under an hour before the Xetra start, the X-Dax, as an indicator for the leading German index, signaled a minus of 0.54 percent to 13,160 points.

The Eurozone leading index

is expected to be 0.2 percent weaker.

On the New York stock market, the poor consumer mood in June had a particularly negative impact.

Consumer spending is by far the most important pillar of the entire US economy.

The revised growth outlook of the experts at Credit Suisse is now "on the edge of recession".

New inflation data in Germany

In Germany, new inflation data are due in the afternoon.

Inflation is still very high, in Germany and in the entire euro zone.

The European Central Bank (ECB) is therefore under pressure to raise interest rates, possibly even with larger steps than initially thought.

Curbing inflation while avoiding a recession is currently the central banks' dilemma.

Investors will therefore pay particular attention to

statements made by ECB President

To interpret the inflation data this Wednesday, a look at the place before the decimal point is enough, with 8 being the dreaded number, wrote Thomas Altmann, portfolio manager at asset manager QC Partners.

"Because an 8 in front of the decimal point would mean a new record for the reunified Germany. In addition, the 8 in front of the decimal point would fuel the discussions about larger interest rate hikes by the ECB."

The number has the potential to send new shock waves through the markets, warned Altmann.

Continental bucks the trend

After an upgrade by Exane BNP Paribas to "Outperform",

the shares of the car supplier and tire manufacturer

Pre-market, SAP

was a little lower in the wake of very weak US technology stocks.

Traders also referred to a weak quarterly outlook from the US group Progress Software.

Dow Jones and Nasdaq collapse again

In the US, a renewed sell-off began on Tuesday after a friendly start.

The

closed with a loss of 1.56 percent to 30,946 points.

The technology

even fell by 3.1 percent to 11,637 points.

Heavyweights like

and

lost 5 and 5.2 percent respectively in value on Tuesday.

The market-wide

lost 2.01 percent to 3821 points.

Data on US consumer sentiment was released shortly after the start of trading.

This clouded over more than expected in June and was as depressed as it had been at the beginning of 2021. Consumer spending is by far the most important pillar of the entire economy in the USA.

"A recession is now clearly a possibility," wrote economist Jeremy Schwartz of Bank Credit Suisse.

Growth will reflect higher borrowing costs and deteriorating sentiment, particularly in cyclical sectors.

It is fitting that consumer stocks and IT stocks were the biggest losers on Tuesday.

Schwartz predicted that private consumers would have to tighten their belts on household goods and housing while companies would have to curb investment.

US banks plan share buybacks and higher dividends

After passing the US Federal Reserve's stress test, the first major US financial institutions have presented new plans for paying out capital to their shareholders.

Morgan Stanley wants to buy back its own shares for up to $20 billion in the coming years and increase the dividend.

rose almost one percent.

Other banking stocks such as

,

and

fared significantly better than the very weak overall market.

The biggest loser in the Dow was

with minus 7 percent.

' rival

made significantly less profit in the fourth fiscal quarter due to the Covid lockdowns in China.

The quarter was mixed, judged JPMorgan analyst Matthew Boss.

In the wake of Nike,

shares also lost 3 percent.

Losses also in Asia

Economic pessimism also spread again on the Asian stock markets in the middle of the week.

The buying mood triggered by the easing of the corona restrictions in China the previous day subsided again.

"It is inevitable that markets will overreact to this type of news," said UBP economist Carlos Casanova.

The government in China had announced a cut in half of the quarantine requirement for inbound passengers in what observers saw as the biggest relaxation of the zero-Covid strategy yet.

This had provided a tailwind on the stock exchanges in Asia and Europe the day before.

On Wall Street, however, concerns about recession and inflation again came to the fore, which also spread to the Asian markets.

In Japan, the

fell 0.9 percent to 26,805 points on Wednesday.

Australia's leading index lost 0.6 percent.

The Chinese

, which hit a four-week high the day before, fell 0.9 percent.

's

leading index lost 1.8 percent.

Bitcoin falls below $20,000

The world's best-known digital currency, Bitcoin, continues to be under pressure.

On the Bitstamp trading platform, the cyber currency was last listed at around 19,900 US dollars, almost 5 percent weaker than the previous day.

Bitcoin hit a record high of $69,000 in November last year.

Oil prices

down slightly

Oil prices fell slightly on Wednesday.

Market observers spoke of a slight countermovement after prices on the oil market had risen three trading days in a row.

In the morning, a barrel (159 liters) of North Sea Brent cost US$ 117.66.

That was 32 cents less than the day before.

The price of a barrel of West Texas Intermediate (WTI) was down 23 cents to $111.53.

Previously, supply concerns had given oil prices a significant boost.

In Libya, oil exports have fallen.

In the North African producing state, there have recently been failures because production was stopped due to political protests in the east of the country.

It was also announced on Tuesday evening that US oil reserves had fallen in the past week.

The industry association American Petroleum Institute (API) has reported a 3.8 million barrel drop in inventories.

Declining oil reserves usually support oil prices.

The official stock data from the US government are expected in the afternoon, which could provide new impetus for the oil market.

With news agencies