The stock market continues to rise, but there is a risk of an imminent correction - financial experts warn of signs of fatigue and point out warning signals.

The stock market continues to rise, but there is a risk of an imminent correction - financial experts warn of signs of fatigue and point out warning signals.

According to a report from www.tagesschau.de,

The stock markets in the USA and Germany continued their record rally in the middle of the week before heavy profit-taking set in and pushed the markets into the red. Investors continue to bet on falling interest rates in the coming year, although signs of fatigue on the markets were clear. However, the German economy showed positive signs, with a rise in consumer sentiment and a fall in producer prices in November.

Nevertheless, the warning signals on Wall Street are increasing, and the German central bank has dampened expectations of imminent interest rate cuts. The uncertainty surrounding a possible Christmas rally is high, especially given the price levels that have already been reached. The euro-dollar ratio and the crude oil market are also showing signs of uncertainty.

It should also be noted that Deutsche Post shares fell due to disappointing business results from competitor FedEx, while Mercedes-Benz has to recall tens of thousands of diesel cars and Fresenius Medical Care has found itself in the sights of the US Food and Drug Administration.

Although some companies such as United Internet and 1&1 have positive business prospects for the coming year, others such as ProSiebenSat.1 see bleaker forecasts for 2024. German chemical company BASF made a major personnel change and found itself in confusion over losses of shares in gas production projects in Russia.

Overall, the market appears to be characterized by uncertainty and volatility, with a mix of positive and negative signals from the economy and the financial sector. The prospect of a Christmas rally remains to be seen, and investors should prepare for possible further turbulence.