market report
Investors on the stock exchange cannot relax. After massive price drops on Wall Street and Asian stock markets, DAX is now headed for its next price drop.
On the German stock market, the small recovery moves from the previous day are already in the past: negative information from overseas stock exchanges is likely to push the DAX into the red zone at the end of the week. Broker IG currently estimates the German standard value to be 1.2 percent lower at 22,990 points.
The DAX would thus erase yesterday’s slight price increase of 0.5 percent in one fell swoop and fall below the much-watched mark of 23,000 points for the first time since May. The DAX’s long-term outlook recently deteriorated massively with a drop below the 200-day line. Market experts predict the potential for further declines.
The negative impetus for the German stock market came from Wall Street. On US stock exchanges, the euphoria over Nvidia’s strong numbers quickly subsided on Thursday and pushed the most important indices into the red zone. Recent labor market data suggests that investors see the odds of further rate cuts continuing to diminish.
US indices fell into the red zone after some strong price increases. The US benchmark Dow Jones value index lost 0.8 percent to 45,752 points in late trading. The tech-heavy Nasdaq fell 2.2 percent to 22,078 points, and the S&P 500 index lost 1.6 percent to 6,539 points. Nvidia shares were also in the red and lost nearly three percent.
Concerns about uncertainty over US interest rate policy and the sell-off in technology shares also caused Asian stock markets to fall this morning. In Japan, the Japanese government’s new economic stimulus package worth the equivalent of $135.4 billion also created uncertainty as it sparked concerns about the country’s budget situation.
Japan’s Nikkei index fell 2.4 percent in late Tokyo trading. The Shanghai stock exchange lost 1.9 percent.
Increased investor aversion to risk is also visible in raw materials markets: oil prices are falling again. A barrel (159 liters) of North Sea Brent fell 1.0 percent to $62.73.
The euro traded almost unchanged at $1.1535. In the morning, the first publication of purchasing managers’ indices for Germany and the Eurozone may provide fresh impetus.
With information from Angela Göpfert, ARD’s financial editorial team.
