DAX Market Report: Below 13,500 points: DAX closes in red – concerns over interest rates and inflation weigh | news

Germany’s leading index, the DAX, entered on Monday down 1.43% to 13,564.47 points. As the year progressed, the stock market barometer slipped further and further into the red and eventually closed trading with a significant 2.43 percent discount at 13,427.03 points.

Friday’s slide continues

On Friday, the DAX fell 3.1% to 13,761.83 points on fears of inflation and recession. The consistently high inflation rate in the US is also causing a sell-off on Wall Street.

“Interest rates and inflation remain the two market bugs,” wrote portfolio manager Thomas Altmann of asset manager QC Partners. “And concerns are growing that high inflation not only leads to stagflation, but also to a recession in combination with rising interest rates.”

Central banks are likely to tighten interest rates further

Investors focused on upcoming central bank meetings. The Fed will discuss this in the US on Wednesday monetary policy. A rate increase of half a percent is considered safe. The Bank of England (BoE) is expected to follow the next day with a quarter percentage point jump.

Crown outbreaks in China are an additional burden

A further concern was the threat of blockades in China, where mass tests were carried out in Beijing and Shanghai over the weekend due to renewed corona outbreaks. The fear is that the COVID strategy continues to damage the economy and global supply chains. Market watcher Jeffrey Halley of broker Oanda spoke of a “Black Monday” on Asian exchanges.

Editorial / Reuters / dpa-AFX

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