The Dax remains in a downward spiral due to inflation, interest rates, and economic concerns. For the first time since November 2020, it fell below the 12,000 mark on Wednesday. Only at 11,914 points was he able to catch anything for the time being. At the end of the first hour of trading, the leading index was down 1.44 percent at 11,964.95 points. The M Dax fell 1.97 percent to 21,902.77 points, with the euro zone’s main index, the EuroStoxx 50, losing 1.3 percent in value.
Energy infrastructure’s stability in question?
The night before, central bankers’ demands for more interest rate hikes had taken a toll on Wall Street as concerns about a global recession mounted. There are several worries about a worsening energy crisis. For instance, recent leaks in the Nord Stream 1 and Nord Stream 2 gas pipelines in the Baltic Sea have raised worries about the stability of the energy infrastructure.
On the corporate side, there were significant price losses in the banking sector, with Deutsche Bank shares down 4.4 percent as the Dax’s taillight. Commerzbank was similarly affected with 5 percent less. As announced the night before, the Polish subsidiary bank will also charge the bank in the third quarter. The reason for this is an additional provision amounting to the equivalent of around 490 million euros.
The retail industry is nonetheless concerned that excessive inflation may have an impact on consumer inclination.
The steel sector fell further due to an industry study by US bank JP Morgan: Thyssenkrupp shares fell 10 percent. For the Salzgitter Group, which is even more focused on steel, the price drop even reached almost 14 percent.
Internet stocks had rallied a bit recently, but now things have gone downhill for them more steeply. Shares of online retailer Zalando on the Dax fell nearly 3 percent. The retail sector remains concerned that the propensity to consume could be affected by high inflation.
Winners were extremely rare on Wednesday, but there were some positive exceptions, particularly in the healthcare industry. Shares of Merck KGaA, for example, were one of the few gainers on the Dax with a gain of 0.4 percent, along with shares of laboratory equipment supplier Sartorius nearly 1 percent higher.