AOn Thursday, a two-day shoot will be followed by the next big slide from the Dax. Inflation fears continue to drive investors around the world, and this is especially evident in growing stocks in the tech sector, for example. The leading German Dax index fell in early trading 2.16% to 13,530 points. For the M-Dax it dropped to 27,970 points. The Euro Stoxx 50 lost 2.5%.
“Given the combination of economic risks and fears of interest rate hikes, the Dax cannot hold a shot at liberation,” Landesbank Helaba wrote Thursday. Instead of 14,000 points, the Dax is again aiming for the weekly low of 13,380 points. The night before, the American stock exchanges had sold again. After “hot inflation data,” as pundits called them, tech stocks in particular continued to drop there.
“Investors’ hopes that the price spiral would slowly come to a halt were not met,” said Jochen Stanzl, market analyst at CMC Markets. The Dax was only briefly off-balance by US inflation on Wednesday, but the price increase in April was unexpectedly high. This increases fears that inflation will remain too high for much longer, according to Commerzbank.
A number of corporate balance sheets were also not well received by investors: Dax’s biggest losers included shares in HeidelbergCement and Siemens, each with more than 6% down, Merck lost more than 4%. According to the retailers, Varta disappointed investors with the outlook for the second quarter. Shares of the battery maker fell by more than 14%.