Interest rate and economic concerns have caused the German stock market to have a weak start to the new trading week. The leading index Dax continued its recent losses and ultimately fell by 0.98 percent to 15,405.49 points on Monday. During trading, the stock market barometer fell to its lowest level since the end of March. The MDax of medium-sized stocks fell by 1.53 percent to 26,129.86 points on Monday.
The EuroStoxx 50 closed almost one percent lower at 4167.37 points. The French Cac 40 fell 0.9 percent, the British FTSE 100 closed 0.8 in the red. In New York, the Dow Jones Industrial fell by around 0.3 percent at the close of European trading.
The mood in the German economy deteriorated again in September, albeit only slightly, as the Ifo Institute announced. Bank economists commented on the development rather pessimistically. “The current misery of the German economy continues,” said Jörg Zeuner, chief economist at fund company Union Investment. “In our opinion, economic output in Germany will continue to shrink until the end of the year.”
“The latest statements from the US Federal Reserve that there could be another interest rate increase this year and that interest rates could remain at a high level for the time being are pulling the stock markets further south,” wrote market analyst Christian Henke from Handelshaus IG. Against this background, capital market interest rates continued to rise. However, high interest rates make stocks appear in a worse light compared to bonds.
Lufthansa shares fell 5.8 percent as the bottom of the MDax. They suffered from negative stock market sentiment for leisure and tourism stocks across Europe. The securities of the travel group Tui lost 6 percent.
The weakness of China’s real estate industry put steel producer stocks under pressure. Thyssenkrupp’s shares lost 3.1 percent. In the SDax small cap index, Salzgitter shares fell by 2.8 percent.
The securities of the real estate group Vonovia bucked the negative trend somewhat and went out of trading almost unchanged.
The euro last cost $1.0590. The European Central Bank set the reference rate at 1.0633 in the afternoon. On the bond market, the current yield rose from 2.79 percent on Friday to 2.81 percent. The Rex bond index fell by 0.22 percent to 122.69 points. The Bund future lost 0.45 percent to 129.04 points.
