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The DAX started the session with a 1.32% discount to 13,822.35 points and remained in a tight range deep in the red. In the end, the stock market barometer lost 0.9% to 13,882.30 points.
Interest rate and recession fears caused significant losses in the German stock market on Thursday.
Trust in central banks is collapsing
“The fear is back. The worries are back. All euphoria has evaporated,” summed up analyst Thomas Altmann of QC Partners. Confidence in central banks is down sharply. Fewer and fewer investors believed that the US Federal Reserve would achieve a soft landing for the US economy. “And for fear of slowing economic growth and corporate earnings, stocks are being sold. Investor risk appetite is extremely low right now. the Atlantic,” Altmann said, referring to very weak U.S. stock markets on Wednesday.
Will Fed policy weigh on the US economy?
Market expert Christian Henke of Broker IG sees things the same way: “Investors recently removed known stressors too soon and are now receiving the receipt.” The market simply ignored recent statements by Fed Chairman Jerome Powell that he would raise interest rates until inflation subsides. Suddenly the fear was back that the US economy was at a standstill, Henke added.
Editing finanzen.net / dpa-AFX
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