indexes in this article
FRANKFURT (dpa-AFX) – The steep descent on the German stock market continued at a rapid pace at the start of the week. Investors are becoming increasingly nervous in the already badly hit stock market environment, because in the USA the central bank (Fed) could make statements on the extent and speed of forthcoming interest rate hikes on Wednesday. In addition, the Ukraine conflict is dangerously escalating, in which the USA and the European Union have also taken a position and are playing an important role. This also caused significant losses on Wall Street on Monday afternoon and briefly pulled the Dax (DAX 40) below 15,000 points for the first time since the beginning of October 2021.
The leading German index finally went 3.8 percent lower at 15,011.13 points from trading. The Dax had not suffered such a heavy daily loss since the end of November. Since the beginning of the year, its minus has now totaled 5.5 percent. The MDAX lost 4.17 percent on Monday to 32,239.83 points and the losses were severe throughout Europe and in the USA. The EuroStoxx 50 (EURO STOXX 50) lost 4.14 percent to 4054.36 points. On Wall Street, the Dow Jones Industrial (Dow Jones 30 Industrial) was last down 2.5 percent, while the tech-heavy NASDAQ 100 was down nearly 4 percent.
“The bears have now finally taken over the power on the trading floor,” market analyst Konstantin Oldenburger of CMC Markets is convinced. A major reason for this is that the money from government economic stimulus programs and “the excessive liquidity pumped into the market by the central banks” will soon be a thing of the past.
The rapid and probably also significant interest rate increases expected over the course of the year will not only make other forms of investment such as bonds more attractive again. They can also become a problem for companies with large debts. Inflation is also weighing on profit margins in the form of higher wages and raw material costs.
The massive tensions between Russia and Ukraine are another source of fear and nervousness, as an escalation is a “serious risk factor” for the stock markets, as market expert Timo Emden warns.
Among the individual values, the former corona crisis winners again stood out with heavy losses. The shares of Delivery Hero, the Dax tail light, fell by 8.1 percent and thus to the lowest level since April 2020. Their loss since the beginning of the year is already around 30 percent.
The shares of the Corona crisis winner HelloFresh also fell significantly this Monday with minus 7.6 percent. In the MDAX, TeamViewer fell by almost 17 percent and in the SDAX it hit the papers of Shop Apotheke (Shop Apotheke Europe NV), which collapsed by 13.5 percent.
The shares of Siemens Energy continued their slump on Friday and at times fell below 18 euros to a record low. They were hit before the weekend by the latest profit warning from wind power subsidiary Siemens Gamesa (Siemens Gamesa Renewable Energy SA).
Commerzbank shares fell 3.7 percent. Due to the uncertainty surrounding foreign currency loans in Poland, the financial institution is preparing for a further burden, but overall it still expects to be in the black for 2021 as a whole.
According to a press report, the airline Lufthansa, whose shares fell by 5.1 percent, could try to acquire a 40 percent stake in the Alitalia successor company ITA Airways.
For Schaeffler, the SDax fell by 6.6 percent. The Franconian automotive and industrial supplier is taking over the Lower Saxony gearbox manufacturer Melior Motion for an undisclosed sum and intends to use it to strengthen its robotics business.
The euro cost 1.1312 US dollars in the early evening. The European Central Bank set the reference rate at 1.1304 (Friday: 1.1348) dollars. The dollar thus cost 0.8846 (0.8812) euros.
On the bond market, the current yield fell from minus 0.19 percent on Friday to minus 0.23 percent. The Rex bond index (REX overall price index) rose by 0.18 percent to 143.78 points. The Bund future rose by 0.36 percent to 170.95 points./ck/he
— By Claudia Müller, dpa-AFX —