Dax, Dow Jones and Nasdaq fall after speech by Jerome Powell, Bitcoin in the red

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Stockbrokers in New York:

concerns about interest rates are sending Dax, Dow Jones and Nasdaq down

Photo: Wang Ying / dpa

Clear words from Fed boss

on monetary policy in the USA and nervousness about an interest rate hike by the ECB that may be larger than previously expected sent stock markets worldwide plummeting on Friday.

The leading German index, the Dax, fell below the 13,000 point mark to its lowest level since mid-July.

In the late evening, the Dax was trading at 12,970 points.

Sentiment also deteriorated significantly across Europe and in the USA.

The Dax ultimately closed 2.3 percent lower at 12,971 points.

In the course of the week it lost 4.2 percent.

The MDax of medium-sized companies fell by 2.1 percent on Friday to 25,523.7 points.

After the close of trading on Xetra, the Dax continued to increase its losses and fell below the 12,900 point mark.

Konstantin Oldenburger, market analyst at CMC Markets, wrote that US Federal Reserve Chairman Powell sharpened the tone in his speech in the direction of combating inflation.

"The Fed will continue to tighten monetary policy in the future, regardless of the associated 'unfortunate costs' for the economy and thus probably the stock market."

Another factor that was particularly burdensome for the stock exchanges was that some members of the Council of the European Central Bank (ECB) were in favor of an interest rate hike of 0.75 percentage points in September, according to traders.

Previously, an increase of 0.5 percentage points had been assumed.

Porsche IPO rumors support Porsche SE

Among the individual values, rumors about the valuation of the planned IPO of the VW sports car subsidiary Porsche AG supported the preferred shares of Volkswagen and the papers of Porsche SE.

The shares of the group holding ended the day with a premium of 0.4 percent as the only one in the Dax in the plus.

VW gave way by 0.7 percent.

The Bloomberg news agency reported, citing people familiar with the matter, that Porsche AG would be valued at between 60 and 85 billion euros by interested parties.

At the top end, the sum could be slightly higher than recently estimated by analysts.

Continental shares, on the other hand, fell by 5.6 percent among the weakest values ​​in the leading index.

A skeptical study by Bankhaus Metzler weighed heavily.

Analyst Jürgen Pieper warned that the car supplier's annual targets could be at risk.

Among other things, he referred to the risk that demand in the tire business could cool down.

The shares of other auto suppliers were also under pressure.

The papers of the former Conti subsidiary Vitesco lost 4.8 percent and the shares of Hella 2.7 percent.

Jefferies analyst Himanshu Agarwal was pessimistic about the entire industry.

The expert now takes a somewhat more conservative view of automobile production in 2023 and of the relationship between market prices and costs.

Lufthansa in the red: pilots want even more money

Among the individual stocks, investors on the German stock market also looked at

, since the airline's tariff poker with its pilots can lead to a strike at any time.

The shares lost around one percent in the MDax.

Among the stock exchanges in Europe, the leading eurozone index, the EuroStoxx 50, fell by 1.9 percent to 3603.7 points.

Paris suffered similarly high losses, while London suffered a much smaller loss.

US stock exchanges with significant losses

The further rate hikes announced by the US Federal Reserve also visibly put pressure on the US stock exchanges on Friday.

By the end of trading in the US, the leading index Dow Jones Industrial had lost around 3 percent and fell back to 32,283 points.

He pulverized the recovery of the last two trading days.

The broader S&P 500 was also down about 3 percent and the tech-heavy Nasdaq 100 was down 3.4 percent.

Many forms of technology are more dependent on credit to finance their growth than companies in more traditional industries and are accordingly vulnerable to rising interest rates.

"Restoring price stability will likely require continued tightening monetary policy for some time," Fed Chair Jerome Powell said at the Jackson Hole conference.

In addition, historical experience speaks against easing monetary policy too early.

However, Powell did not yet give clear signals for the next meeting.

"Our decision at the September meeting will depend on the aggregate of incoming data and the evolving outlook," the central banker said.

However, another "extraordinarily large" rate hike could become necessary.

Moderna wants to sue Pfizer and Biontech

The US biotech company

wants to hold its German rival

and its partner

accountable for alleged patent infringements in the development of corona vaccines.

Moderna has therefore filed lawsuits in courts in the United States and Germany, the company announced on Friday.

Premarket shares of Moderna fell 0.4 percent, those of Biontech fell 2.0 percent and Pfizer shares lost 0.6 percent.

Otherwise, the share certificates (ADRs) of Chinese companies listed on the US stock exchanges continued to rise on Friday before the market.

According to the US Securities and Exchange Commission (SEC), the US and China reached a preliminary agreement that US representatives can examine accounting documents from Chinese companies listed in the US.

This is a first step towards preventing the around 200 Chinese companies listed in New York from having to delist there.

Bitcoin buckles again

The world's best-known digital currency, Bitcoin, was also clearly in the red on Friday evening and fell back below the $21,000 mark.

The cryptocurrency has been under pressure since the beginning of the year.

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

Oil prices hardly changed

Oil prices were also little changed on Friday.

Recently, a barrel (159 liters) of the North Sea Brent cost around 100 US dollars.

That was 0.6 percent more than the day before.

The price for a barrel of the American West Texas Intermediate (WTI) variety also hardly changed.

Oil prices came under pressure at the beginning of the week, but rose again as a result of the slight recovery on the stock markets.

With news agencies