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Deutsche Börse in Frankfurt: The Dax is still under pressure
Photo: Arne Dedert / dpa
The price slide continues: The German leading index Dax fell by a further 0.9 percent on Monday and is now just above the 12,100 point mark.
This increases the probability that the Dax will fall below the 12,000 point mark again this week.
The short-term recovery to 12,700 points has thus proven to be a bull trap.
Hopes that the US Federal Reserve will slow the pace of rate hikes have plummeted after robust US jobs numbers.
Reports of explosions in the Ukrainian capital of Kyiv also weighed on the mood.
On Friday, the Dax had already closed 1.6 percent down at 12,273 points.
Its eurozone counterpart, the EuroStoxx 50, also fell about 1 percent on Monday.
In the morning there were violent explosions in the center of Kiev.
There were several impacts, reported Mayor Vitali Klitschko and a correspondent for the German Press Agency.
Earlier, the Deputy Head of the Russian Security Council,
Dmitry Medvedev
, threatened Ukraine with retaliation for the explosions on the Crimean bridge, which is strategic for Russia.
After a promising start to October, dark clouds were already gathering on the stock exchanges again in the middle of last week.
The most recent recovery turned out to be a flash in the pan and investors "threw in the towel" sobered, said market observer Christian Henke from broker IG.
"The market participants who had hoped that the central banks would put the brakes on interest rates were caught on the wrong foot."
On Friday, a robust jobs report from the United States finally dashed investors' hopes of more less aggressive rate hikes by the US Federal Reserve.
However, expert Henke emphasized that a statistically better stock market period is now beginning, with an otherwise usual autumn rally, which often lasts into November.
However, it is questionable whether this can become reality: In terms of chart technology, the Dax is more likely to be in the direction of 12,000 points again.
The beginning of the reporting season and the US inflation data on Thursday could provide important impetus in both directions.
Takeover fantasy fuels Vantage Towers
In the hope of a bidding war for
Vantage Towers
, investors are investing in the cell tower operator.
The company's shares rose a good 3 percent in early trading in Frankfurt.
According to a report by the Bloomberg news agency, American Tower and Cellnex could enter the race for Vantage Towers.
Although this is not a big surprise, it brightens the mood, said a broker.
Robust US job market report fuels interest rate fears
The surprisingly robust jobs report on Friday revived fears among investors on Wall Street that interest rates would continue to rise significantly.
The
Dow Jones Industrial
widened its minus during trading.
In the end, the price fell by 2.11 percent to 29,296 points, with the leading index remaining slightly above its daily low.
Thanks to strong gains on Monday and Tuesday, he still achieved a weekly plus of almost 2 percent.
The market-wide
S&P 500
ultimately fell by 2.80 percent to 3639 points on Friday.
The losses in technology stocks, which are considered particularly sensitive to interest rates, were even more severe: The Nasdaq 100
, which is peppered with tech
stocks, fell by 3.88 percent to 11,039 points.
China's stock market plummets, no trading in Japan
The Chinese stock markets fell on Monday, weighed down by a price slide in technology stocks.
The
Shanghai
Stock Exchange fell 0.8 percent to 3,000 points and
Hong Kong
's leading index fell 3 percent to 17,213 points.
There was no trading in Japan and South Korea due to public holidays.
The increasing number of coronavirus cases and disappointing economic data from the weekend hit investor sentiment.
According to them, the Chinese service sector is shrinking for the first time in four months.
Other stress factors include new US government restrictions on certain technology exports to the People's Republic.
For example, companies are no longer allowed to supply systems for the production of high-quality computer chips.
This pushed the Chinese industry index by up to 6.5 percent to 4748 points, the lowest level in almost three years.
Real estate values, on the other hand, increased by almost 2 percent on average.
They benefited from the recent measures taken by the government in Beijing to help the troubled sector.
Among other things, certain interest rates were lowered and tax breaks were offered to home buyers.
Bitcoin is hovering around the $20,000 mark
The digital currency Bitcoin is hardly moving.
The cyber currency was last listed on the Bitstamp trading platform at 19,435 US dollars.
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 lower
Oil prices started the week at a discount.
On Monday, a barrel (159 liters) of North Sea Brent cost $96.95.
That was 97 cents less than on Friday.
The price of a barrel of West Texas Intermediate (WTI) fell 90 cents to $91.74.
Regardless of the recent discounts, prices have increased noticeably in the past week.
The decisive factor was a production cut by the Opec+ oil network.
The 20 or so oil states were reacting to price declines in the weeks before.
The background to this was recession fears and the fight of many central banks against inflation.
Demand for oil is expected to be correspondingly weak.
With news agencies
