Analysis: How will the poor start in July impact the third quarter on the stock market?

Analysis: How will the poor start in July impact the third quarter on the stock market?

According to a report by www.rheinpfalz.de, the poor start in July on the stock market may indicate a trending decline in the current third quarter. The German leading index DAX lost significantly in value in the first week of July and fell below the 16,000 point mark. According to LBBW research, this could be the start of an overall weak quarter, especially since the third quarter is traditionally the weakest of the year. On the other hand, Deka-Bank is of the opinion that the moderate start to the third quarter of 2023 represents merely a technical correction after the previous upward movement and will be limited in time.

The uncertainty in the market remains as questions about inflation, the interest rate hike policy of the US Federal Reserve and the ECB, the economy in the USA and Europe and company profits remain unresolved. New inflation figures from the USA are expected, as is the Fed's economic report. In Germany, the ZEW index will be interesting, with unchanged values ​​expected.

As a financial professional, it is important to analyze how these uncertainties and events may impact the stock market and the financial industry. A significant decline in US inflation figures could lead to new speculation about the Fed's interest rate hike policy and its impact on the economy. This could lead to increased volatility in the markets. In addition, unexpected values ​​of the ZEW index in Germany could influence expectations and lead to short-term fluctuations.

Overall, the situation on the markets remains uncertain and investors should be prepared for the markets to react in a volatile manner due to the ongoing uncertainties. It is advisable to closely follow current developments and make adjustments to investment strategies if necessary.