Negative information from overseas is likely to weigh on the German stock market on Friday and cause it to slide below the round mark of 24,000 points.
In the first pre-market indications, the DAX is temporarily expected to be 1.2 percent lower at 23,970 points. On Thursday it closed with an increase of 0.38 percent at 24,272.19 points.
Record high is receding into the distance again
It was only on Thursday last week (October 9th) that the DAX set a new record high of 24,771.34 points. Ultimately, it ended that day at 24,611.25 units, which was also a new record based on the closing price.
US regulations burden – worries about loans
The US stock market came under further pressure on Thursday after the local XETRA close, which is now also weighing on prices here. With a view to Wall Street, experts pointed to concerns about the balance sheet quality of smaller regional banks after two banks announced problems with loans. The regional banks Zions Bancorp and Western Alliance reported problems with borrowers and bad loans. Traders say there are growing concerns about the US credit market. Although it is not a systemic credit collapse, it is a clear warning signal. “Volatility at regional banks, combined with the recent collapse of subprime lender Tricolor Holdings, has investors questioning the overall health of U.S. credit markets,” said NAB foreign exchange strategist Rodrigo Catril.
Overall, the DAX has been under pressure since its record high of 24,771 points just over a week ago. But it was also preceded by a strong run, also driven by the booming topic of AI. However, the trade dispute between the USA and China, which flared up again, caused minor tones.
Planned Trump-Putin meeting just a side note
A telephone conversation between US President Donald Trump and the head of the Kremlin Vladimir Putin on the Ukraine war and a subsequent meeting in the Hungarian capital Budapest is at best a side note for market participants at the end of the week.
Editorial team finanzen.net / dpa-AFX / Dow Jones Newswires