Stock markets fall: Dow Jones and Dax lose - bond yields rise

Stock markets fall: Dow Jones and Dax lose - bond yields rise

According to a report from finanzmarktwelt.de, the stock markets have fallen noticeably. The Dow Jones lost 800 points in the last three days, while the Dax fell by 370 points. The yield on ten-year US government bonds rose further from 4.68% to 4.99% and is currently at 4.93%. Higher yields make bonds more attractive compared to stocks. In addition, a speech by Federal Reserve Chairman Jerome Powell weighed on the stock markets. Although he said too many rate hikes could be harmful, he left room for potential rate hikes. This contributed to the bond yield temporarily reaching the 5% mark and share prices continuing to fall.

Another factor influencing the stock markets is the rising oil price due to the Gaza war. The price of oil has risen by $7 since the start of the war and increased again overnight. The more expensive the oil, the higher the cost of fuel and fuel in the major industrial nations, which hampers economic development and has a negative impact on the stock markets.

In addition, the increasing tension in the Middle East is weighing on the stock markets. US bases in Iraq and Syria are reported to have come under drone strikes and an American destroyer in the Red Sea intercepted cruise missiles and drones fired by Houthi rebels. The geopolitical situation in the Middle East is therefore another crucial factor that influences the stock markets.

All of these developments have an impact on the market and the financial industry. Rising interest rates, high oil prices and geopolitical uncertainty are causing investors to increasingly favor bonds and reduce their stock holdings. Lending is also becoming more expensive, which is affecting demand for loans from consumers and businesses. The uncertainty about further developments in the Middle East is also increasing the negative mood on the stock markets.

The factors mentioned should be monitored carefully as they have the potential to have further impact on the market and the financial industry. It is advisable to carefully analyze current developments and weigh up the corresponding risks in order to make appropriate investment decisions.

Source: According to a report from finanzmarktwelt.de