Fears of recession are not only causing prices to fall on the German trading floor in Frankfurt, Dow Jones, p
The opening on Monday brought only one thing for investors on Wall Street: falling prices everywhere. The US standard value index Dow Jones fell by around two percent. It even went by around three percent for the S
The price losses are further driven by concerns about inflation and the economy, which had already accelerated the slide on the US stock exchanges on Friday. The inflation rate in the US climbed to its highest level in more than 40 years in May. Consumer prices rose by 8.6 percent compared to the same month last year. Economists had expected an unchanged inflation rate of 8.3 percent. In addition, consumer sentiment fell to a record low in June amid high inflation.
“After the US inflation rate fell in April, speculation had increased that the peak had been passed,” wrote analyst Christoph Balz of Commerzbank. With the renewed increase, this was done.
“Inflation and interest rate expectations are supported again, especially since oil prices are still unexpectedly high and gasoline prices have developed additional upward momentum in recent weeks,” added Ralfcircul, analyst at Landesbank Hessen-Thüringen. The US Federal Reserve will therefore intend to raise interest rates by 0.5 percentage points next week.
The slide on the German stock market also continued on Monday. In view of high inflation, fear of interest rates and the associated concerns about a recession, there seems to be no improvement in sight.
The Dax fell by 2.43 percent to 13,427.03 points. In the course of trading, the leading German index briefly slipped below the May low of 13,380.67 points. The stock market barometer has meanwhile fallen back into its recent downward trend since the beginning of the year. The MDax for medium-sized stocks fell by 3.57 percent to 27,742.35 points.
