Frankfurt Stock Exchange: Bank shares cause another setback for the DAX – below the 15,000 point mark

The DAX started trading at a discount of 0.49 percent at 15,135.50 points and expanded over the course of the day. The stock exchange is currently down 1.99 percent to 14,907.06 points.

“Investors remain torn between the hope that the interest rate peak on the other side of the Atlantic is within reach and the fear that interest rate hikes will not be taken into account in the fight against rampant inflation,” said market observer Timo Emden. Regarding the question of how about the future monetary policy ordered by the US Federal Reserve, stockbrokers are obviously poking around in the fog. The speculation ranges from more interest rate hikes to an interest rate pause to imminent rate cuts. In the real estate sector, the uncertainty remained evident with significant price losses.

Bank stocks under pressure

Fighting inflation is also a “difficult balancing act” because of the current turbulence in the banking sector, added Emden. Bank stock prices plummeted again, reflecting the ongoing uncertainty. In particular, Deutsche Bank stocks fell by 13 percent at times to a new low since October. The shares of Commerzbank fared similarly with a discount of more than eight percent.

End of a choppy trading week

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Things had already been volatile the day before: After falling to 15,078 points, the losses were finally made up for. After the emergency rescue of Credit Suisse (CS) by UBS, which had become surprisingly necessary, the weekly low was even 14,458 points on Monday – the lowest level since the first week of trading in January. Thanks to the strong recovery, the DAX is currently even slightly up on a weekly basis.

Fed rate decision is having an impact

According to the experts at Landesbank Hessen-Thüringen, market participants are still undecided as to which conclusions can be drawn from the US Federal Reserve’s latest interest rate decision for future interest rates. Despite the banking turbulence, this again had a small one rate hike made, but also gave vague signals for an imminent end to the cycle of increases.

Environment still speaks for the DAX

On the other hand, no major pressure is in sight: oil prices and yields are coming back a little, and the euro has also ended its upward spurt from late Wednesday and early Thursday,” concludes a market analyst.

Editorial office finanzen.net / dpa-AFX / Dow Jones Newswires

Image sources: thodonal88 / Shutterstock.com

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