Market report: German stock exchanges on the decline - uncertainty in the Middle East and rising capital market interest rates are weighing on the markets

Market report: German stock exchanges on the decline - uncertainty in the Middle East and rising capital market interest rates are weighing on the markets

According to a report by www.4investors.de,
Steeper downwards: The German stock exchanges fell noticeably in the last trading week. After the markets appeared relatively stable at the beginning of the trading week, investors' uncertainty and associated losses increased as the week progressed. The reason for this was, on the one hand, concerns about developments in the war in the Middle East. Here, hopes for a diplomatic solution dwindled while fears of further escalation grew. On the other hand, rising capital market interest rates had a negative impact on the mood on the stock exchanges. The yield on the ten-year US government bond rose to almost five percent, and higher bond yields make stock investments, which are considered riskier, appear less attractive.
The German stock index (DAX) lost 2.6 percent week-on-week to 14,798.47 points. The MDax fell by 3.6 percent to 24,065.65 points. The TecDax lost 3.5 percent to 2,843.38 points. The m:access All-Share lost 2.9 percent to 1,342.81 points.

The biggest weekly losers in the DAX were the shares of Sartorius with a discount of 12.6 percent, while Adidas was at the top of the DAX weekly winners with an increase of 3.7 percent. In the MDax, Dürr's share price fell by 12.5 percent; the plant manufacturer had reduced its targets for the coming year. Prices on the German bond markets fell last week, with the yield on the ten-year federal bond rising from 2.73 to 2.88 percent on a weekly basis. The US stock exchanges also recorded noticeable losses, with the Dow Jones index falling by 1.6 percent on a weekly basis.

In view of this development, many investors on the German stock exchanges could also hold back this week. A lot will depend on further developments and, above all, on whether the speculation is more in the direction of stabilizing or expanding the war.

In addition to this geopolitical influence, the week brings some potentially market-moving dates, including the European Central Bank Governing Council meeting. Furthermore, the purchasing managers' indices for the Eurozone and the USA, the Ifo business climate for Germany and US data could influence the mood on the markets. The progress of the reporting season is also likely to have an impact on stock market events, with Beiersdorf, Covestro, Deutsche Bank, Mercedes Benz, MTU Aero Engines and Symrise, among others, presenting figures from the DAX alone.

The current uncertainty in the markets reflects the challenges facing investors and financial professionals. Changing geopolitical developments and economic indicators can cause short-term volatility and influence long-term investment decisions. It is therefore advisable to monitor these developments closely and make informed decisions based on a comprehensive market analysis.