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Deutsche Börse: Dax crashes | money

Frankfurt am Main – BAD! There is no other way to describe today’s trading day for Dax investors!
Central banks are increasingly burdening stock markets with their interest rate hikes to curb high inflation. On Thursday, an unexpectedly significant rise in interest rates by the Swiss National Bank (SNB) put pressure on already fragile European stock exchanges. The decline worsened in the afternoon after US equities began trading lower after the mid-week rally.

In Frankfurt, the Dax fell towards the round figure of 13,000 points and eventually lost 3.31 percent to 13,038.49 points. The main German index is therefore at its lowest level since the beginning of March.

The MDax for midsize stocks fell 3.77% to 26,735.77 points after temporarily hitting its lowest level since November 2020.

The SNB surprisingly raised the benchmark rate by 0.50 percentage points and justified it as a measure against inflationary pressures. According to a market participant, hardly any economist expected the Swiss National Bank to join the ranks of central banks to raise interest at this point.

On Thursday, in addition to the SNB, the Bank of England (BoE) also raised its benchmark rate by a further 0.25 percentage points to 1.25%. This was expected.

The market has focused on online fashion retailers following a bearish forecast from Asos and a disappointing interim report from Boohoo. This put considerable pressure on the shares of the German competitor Zalando. Newspapers fell at the bottom of the Dax by 12.4%. The other 39 values ​​of the index also close in red.

Shares of BASF and Uniper were also among the weakest shares, down 6.9% and 9.7% respectively. The main reason could be the further reduction in gas deliveries to Germany by the Russian energy group Gazprom. At BASF, for example, a possible shutdown of Russian gas supplies is threatening production at the Ludwigshafen chemical site.

The leading Eurozone EuroStoxx 50 index lost 2.96% to 3427.91 points. The Cac 40 in Paris suffered slightly less pressure, while the FTSE 100 in London fell a good 3%. In New York, the leading Dow Jones Industrial barometer fell 2.5% to close in Europe.

The euro benefited from weak US economic data and most recently cost US $ 1.0513. The ECB set the reference rate at 1.0400 (Wednesday: 1.0431) dollars. The dollar therefore cost 0.9615 (0.9587) euros.

Prices on the bond market plummeted. Conversely, the current yield rose to 1.72% from 1.66% the previous day. The Rex pension index fell 0.27% to 130.47 points.

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