Stock market in downward pull: Dax falls below the 12,000 point mark

Created: 09/28/2022, 10:51 am

By: Thomas Schmidtutz

The growing concerns about the economy unsettle investors and weigh on the mood on the stock market.

© Arne Dedert/dpa

The downward trend in the Dax persists due to concerns about inflation, interest rates and the economy.

Frankfurt/Main - The Dax remains in a downward spiral due to inflation, interest rate and economic concerns.

For the first time since November 2020, it fell below the 12,000 point mark on Wednesday.

Only at 11,914 points was he able to catch something for the time being.

At the end of the first hour of trading, the leading index was down 1.44 percent to 11,964.95 points.

The MDax fell by 1.97 percent to 21,902.77 points, the leading eurozone index EuroStoxx 50 lost 1.3 percent in value.

The previous evening, calls by 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.

Deutsche Bank and Commerzbank weak, ThyssenKrupp rushes

On the company side, there were major price losses in the banking sector, as shown by the 4.4 percent lower shares of Deutsche Bank as the Dax tail light.

Commerzbank was hit just as badly with a 5 percent minus.

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.

The steel sector went down even further due to an industry study by the US bank JPMorgan: Thyssenkrupp stocks fell by 10 percent.

For the Salzgitter Group, which is even more focused on steel, the price slide even amounted to almost 14 percent.

Internet stocks had recently recovered somewhat, but now things have gone downhill for them more steeply.

The titles of the online retailer Zalando in the Dax fell by almost 3 percent.

The retail sector is still concerned that the propensity to consume could suffer from high inflation.

Winners were extremely rare on Wednesday, but there were a few positive exceptions, particularly in the healthcare industry.

The shares of Merck KGaA, for example, were one of the few winners in the Dax with a plus of 0.4 percent, alongside the almost 1 percent higher shares of the laboratory equipment supplier Sartorius.