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Dax with price drop to annual low, Dow Jones in the red, sell

2022-09-20T18:03:14.739Z


Sell-off on the stock exchange: Dow Jones and Nasdaq increase their losses in the evening, the Dax increases its losses to more than 300 points and falls to its lowest level in more than five years. Investors are fleeing the interest rate hike by the US Federal Reserve.


Enlarge image

Fall in prices on the stock exchanges: The Fed is likely to raise interest rates sharply again on Wednesday.

The Dax is at its lowest level for more than 5 years

Photo: DANIEL ROLAND / AFP

Price drop in the evening: After the hesitant price recovery at the beginning of the week, investors on the German stock market dived again on Tuesday.

The leading index Dax fell again on Tuesday, at the close of trading on Xetra (5:30 p.m.) the discount was 1.03 percent to 12,671 points.

But that's not all.

Since the US stock exchanges continued to increase their losses in the evening, the Dax also fell further and further: In the evening, the leading German index was only listed at 12,550 points, a loss of 2.5 percent.

(For the current chart view switch from "Xetra" to BNP Paribas).

It is also the lowest price level in more than five years.

With the prospect of another sharp rise in interest rates in the USA on Wednesday, investors hardly took any more risks.

Real estate stocks are collapsing

Rising capital market interest rates are poison for the real estate industry.

They make construction more expensive and, at the same time, refinancing.

The European sector index fell to its lowest level since March 2020 on Tuesday.

Vonovia

shares brought up the rear in the Dax with a discount of 5 percent.

Real estate stocks in the MDax and SDax also came under pressure.

Porsche against the trend

Against the trend, the shares of the car manufacturers were able to increase - at least in Xetra trading.

The surcharges ranged from 0.5 percent for

Mercedes-Benz

to 5 percent for the

Porsche

Holding.

Volkswagen

prices rose by 1.2 percent.

Here, the upcoming IPO of Porsche AG once again sparked the imagination.

The subscription period for the shares begins this Tuesday. According to a media report, the order book is already significantly oversubscribed.

Dow Jones and Nasdaq continue to fall in the evening

On the day before the Federal Reserve is expected to raise interest rates again, nervousness is growing among US investors.

The leading index Dow Jones Industrial was down 1.4 percent two hours before the end.

With the exception of a few points, the stock market barometer has come close to its low since mid-July, which it reached before the weekend.

The market-wide S&P 500 lost 1.4 percent.

The technology index Nasdaq 100 recently fell by 1.4 percent.

Bitcoin below $19,000

Because of the prospect of drastic interest rate hikes by the major central banks, investors are withdrawing from risky asset classes such as cryptocurrencies.

The world's best-known digital currency, Bitcoin, was last listed on the Bitstamp trading platform at 18,920 US dollars.

Oil prices weaker

Oil prices initially barely moved on Tuesday.

In the morning, a barrel (159 liters) of the North Sea Brent cost 92.16 US dollars.

That was 16 cents more than the day before.

The price of a barrel of the US West Texas Intermediate (WTI) variety stagnated at $85.27.

In the evening, however, oil prices came under pressure again.

Oil prices have trended downwards in recent months, albeit from a high level.

A burden comes from the expected weak economic development and from rising interest rates in many places, with which the central banks are defending themselves against the high inflation.

Accordingly, the demand for oil, petrol and diesel is likely to develop rather weakly.

Crude oil supply, on the other hand, remains tight, limiting the drop in oil prices.

The main reason for the tight supply is the Ukraine war, which caused many western countries to turn their backs on Russian oil.

On Monday, the Bank for International Settlements (BIS) said replacing Russian oil supplies would be difficult given Russia's high market share.

With news agencies

Source: spiegel

All news articles on 2022-09-20

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