Analysis: Falling share prices in the DAX - salami crash and hope for recovery. Reasons for price decline and prospects for improvement.

Analysis: Falling share prices in the DAX - salami crash and hope for recovery. Reasons for price decline and prospects for improvement.

According to a report by www.tagesschau.de,

Falling share prices in the DAX are currently causing unrest on the market. The DAX has fallen steadily in recent weeks, in what experts call a “salami crash.” This long-term downward trend indicates a difficult period for the stock market. The reasons for this include the rising yields on bonds, which are making the stock markets less attractive. Additional pressure also came from rising oil prices, which have now fallen slightly again.

The current chart technology of the DAX indicates that it is in poor technical condition, which is further weighing on investor sentiment. However, the negative investor sentiment could also be an indicator of rising prices, as everyone may have already sold. Additionally, there is the possibility of a “short squeeze,” where short sellers have to buy the DAX to cover their positions, which in turn could cause prices to rise.

What is particularly worrying is that October is known as a month of crises and crashes. Statistically speaking, a sustained recovery only becomes apparent after Halloween, at the beginning of the best six months on the stock market.

Given these facts, the ongoing downward trend in the DAX could become a difficult phase for the financial industry. Rising bond yields and oil prices could reduce the attractiveness of stocks, which could lead to investors turning to other forms of investment. Analysts therefore expect a tense phase with further uncertainty on the stock markets.