The clear price recovery from the previous day proved to be unsustainable on Wednesday. Once again, concerns about the banking sector weighed heavily on sentiment. The Dax, which started weaker, increased its losses significantly by midday and was last down 3.32 percent at 14,727.26 points. It slipped below the low it had reached at the beginning of the week for two months.
After the collapse of three US banks and fears that this would spread to the entire sector, the focus has now shifted back to the troubled Credit Suisse. The chairman of the Saudi National Bank, Ammar Abdul Wahed Al Khudairy, categorically ruled out additional support on request in an interview with “Bloomberg TV”. The bank is a major shareholder in Credit Suisse.
ECB interest rate decision on Thursday
The turbulence before the upcoming interest rate decision by the European Central Bank (ECB) this Thursday caused increased uncertainty again, said a broker. Against this background, the MDax index for medium-sized companies fell by 3.67 percent to 26,761.12 points. The EuroStoxx 50, the leading index in the euro zone, fell by 3.35 percent to 4039.55 points. Premarket indications for Wall Street also slipped into the red.
On the corporate side, the high price losses of Credit Suisse on the Swiss stock exchange again pushed the banking sector deep into the red throughout Europe in the middle of the week. The industry index Stoxx Europe 600 Banks lost almost six percent. In Germany, Deutsche Bank shares slipped by almost seven percent, Commerzbank papers lost almost eight percent at the end of the Dax.
Many car and supplier stocks were also weak, with losses of up to 4.3 percent for Continental. The Volkswagen preferences went down by 2.7 percent, the group had lowered the margin target for its core brand. The BMW shares, which were previously in demand after the annual balance sheet, could not withstand the downward pull either, they recently lost around two percent. Only the Eon papers remained after the general price slide in the Dax as winners with a thin plus of 0.15 percent.
