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Dax collapses: investors fear recession

Investors are concerned about the gas crisis and the activation of the alert level. The Dax closed under 13,000 points on Thursday.

The federal government’s declaration of the gas alert level is putting European stock exchanges in crisis. “Investors are impressively shown that the German economy could be in serious trouble if gas connections with Russia were completely cut off,” said Emden Research analyst Timo Emden.

On Thursday the main German index fell by 1.7% to 12,918.53 points and the EuroStoxx50 by 0.6% to 3,442.16 points. The US Dow Jones Standard Value Index, on the other hand, rose slightly to 30,486.10 positions.

At the same time, the future of European natural gas increased by 4.4% to EUR 131.85 per megawatt hour due to reduced deliveries from Russia. Until a sustainable alternative for Russian gas is found, further price hikes are to be expected, the stockbrokers said. So far, the outages have been limited. “But the market is in a delicate balance”. Read here what the ad means to consumers.

Rising rates could plunge the economy into recession

The national companies were also unhappy. “Surprisingly weak SMEs are fueling the debate on slowing growth and raising questions about how much the European Central Bank (ECB) can really raise interest rates.” Against this backdrop, the euro slipped 0.5% to $ 1.0514.

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