Frankfurt / Main (dpa) – The record hunt on the German stock market could soon be over for now. If the leading index Dax climbed above 16,000 points for the first time a few days ago, a little later it found itself 400 points weaker at its lowest level in about two weeks.
The fear of an approaching end of cheap money in the USA, the delta variant of the coronavirus and turbulence in China could initially further deter investors.
On this Friday, a rather weak stock market week ended with slight price gains. The leading index Dax closed 0.27 percent higher at 15,808.04 points, but lost a good one percent on a weekly basis.
Investors should look with excitement in the new week to the small town of Jackson Hole in the US state of Wyoming. From Thursday, leading central bankers will meet there for an annual monetary policy exchange and outlook. “US Federal Reserve chiefs were happy to use this conference as an opportunity to announce a turnaround in their monetary policy,” wrote economist Cyrus de la Rubia from Hamburg Commercial Bank.
Market players hoped to learn what the Fed’s schedule for an exit from extremely loose monetary policy looks like.
So given the uncertainty surrounding Fed monetary policy, investors could keep their powder dry. In addition, there are increasing numbers of corona infections in many parts of the world. In this country, the seven-day incidence is also rising rapidly. The increasing number of infections weighed on the economic prospects, said economist Carsten Mumm from the private bank Donner & Reuschel. Delivery bottlenecks and sharply rising costs for logistics, preliminary products and raw materials also slowed industrial production.
In addition, the Chinese government repeatedly causes turbulence. Most recently, President Xi Jinping declared that he wanted to compensate for the high differences in prosperity in the country. Extremely high incomes should be regulated and adjusted, it said from Beijing – without further details. Investors then said goodbye across the board to stocks of automakers and luxury goods companies. “These generate a large part of their sales in the Middle Kingdom and have profited in recent years from the increased prosperity of Chinese consumers,” wrote analyst Bastian Ernst from the Berlin Weberbank. The shares of German car manufacturers recently posted heavy losses.
Looking at the economic agenda for the new week, investors are likely to be most interested in the business climate for Germany (Wednesday) recorded by the Ifo Institute and, at the beginning of the week, in the European and American sentiment data from industry and the service sector. The rising corona numbers and supply bottlenecks in the industry are likely to affect the data.
With the ticket marketer CTS Eventim, the drug manufacturer Dermapharm (both on Tuesday) and the real estate group Aroundtown (on Wednesday), some latecomers of the reporting season are also presenting their business figures.