Dax records third weekly loss: correction continues

Dax records third weekly loss: correction continues

The German stock market reacted to reports of a suspected Israeli retaliation against Iran with a further decline. The DAX recorded a loss of 0.56 percent at the closing price of 17,737.36 points. This was the third consecutive weekly loss, with the index down four and a half percent since its record high earlier in the month. A key support line, the 50-day moving average, has been broken, seen by chart technicians as a sign of a weakening medium-term trend.

According to media reports, Israel carried out an operation in Iran in response to a major attack. These reports were published by The New York Times based on statements from Israeli and Iranian government officials. The consequences of this development were reflected in the German market, with some stocks, including those of Sartorius and Befesa, recording losses. Stock expert Marco Valli from Unicredit warned of further difficulties on the markets and recommended that investors hold off on making new commitments until the situation calms down.

Chip stocks were also hit as TSMC, the world's largest chip maker, expects the semiconductor industry to weaken due to problems in the smartphone and laptop markets. Infineon and Aixtron lost value, while Süss Microtec recorded profits due to a buy recommendation from the investment bank Stifel. The euro was trading at $1.0660 after the market closed, while the current yield on the bond market rose and the Bund future fell. Overall, the fallout from the alleged Israel-Iran incident is expected to continue weighing on the stock market.