Stock market sentiment at its lowest point: share prices are falling due to the escalation between Israel and Hamas

Stock market sentiment at its lowest point: share prices are falling due to the escalation between Israel and Hamas

Stock markets around the world have been hit by concerns about an escalation in the conflict between Israel and Hamas. The Dax has fallen to its lowest level in seven months and has fallen below the 15,000 point mark. On Friday, the leading German index closed with a loss of 1.64 percent at 14,798.47 points. On a weekly basis, the loss was 2.6 percent. The MDax of medium-sized companies also recorded a decline of 1.52 percent to 24,065.65 points.

The situation in the Middle East is causing nervousness among investors and leading to riskier investments being sold. In order to reduce risk aversion on the financial markets, an easing of tensions on the bond markets would be necessary. However, this is currently not in sight. The yield on ten-year US bonds temporarily approached the five percent mark before the weekend. This reduces the attractiveness of riskier stock investments compared to supposedly safe investments.

In this uncertain market environment, investors are increasingly looking for safe havens, such as gold. Despite the rise in capital market interest rates, the yellow precious metal is becoming more attractive as fears of escalation in the Middle East are given greater weight.

These developments may have an impact on the market and the financial industry. A low stock market can lead to general negative sentiment and affect investor confidence. High risk aversion could lead to investors withdrawing from riskier exposures and increase demand for safer assets, such as government bonds or gold. This could result in market prices for these investments increasing.

Source: According to a report by www.boerse.de