The weakening economic growth in China has added to investors around the world on alert. The Dax fell after fierce rate turbulence in Asia on Monday for the first time in January again branded 10 000 points. The annual profits are wiped out with it. Even on Wall Street in New York it was initially feared to slump – later, the Dow Jones Industrial recovered but significantly
The DAX lost 4.70 percent to 9648.43 points -. The maximum daily decline since 1 November 2011 then 5.0 percent. After poor data from the US the leading German index was even temporarily plunged by more than 7 percent below the mark of 9400 points. Also on other exchanges in Europe it was at the beginning of the new trading week down.
Shanghai with the worst slump since eight years
In New York swept the Dow Jones Industrial few minutes after IPO temporarily to more than 6 percent in the depth, reaching the lowest level since a half years. Thereafter, the index recovered. European close of trading were only 1.3 percent negative impact. Hardest hit were the equity markets in Asia.
The Shanghai stock market experienced the worst slump since eight years, major stock indexes were up about 8 percent in the red. The Japanese Nikkei index fell by 4.6 percent and fell for the first time in five months below the mark of 19,000 points. China’s government is now the “Wall Street Journal” (Monday) According on various measures by which to support the economy and the financial market.
growth as weak as the last 25 years no longer
For years benefited large economic powers from the rapid growth in China benefited – now the concern is about the time of the Chinese economy turbos could initially be over
Although the second largest economy in the world was from January to June. still grown compared to the first half of 2014 by seven percent. But the growth was not as weak as 25 years. Also in other emerging markets like Brazil flagging economic power. For Investors will also include in particular the prospects for the future – and the estimates of experts promise so quickly no improvement
Auto stocks suffer most
Among the concerns currently affecting especially the papers. German carmakers, for which China is one of the most important markets. Daimler and BMW were on Monday more than three per cent each in the red. Already in the past few days had let fall the rates of bad news from the Chinese auto market. In the three indices of the DAX family – DAX, MDAX and TecDAX – with a total of 110 shares, there were only two values with gains
The German Industry and Commerce (DIHK) said, admit it despite the turmoil. on the stock exchanges no reason for “alarmism”. Largest sales market for German companies were still the industrialized countries, said DIHK foreign trade director Volker Treier of the “Neue Osnabrücker Zeitung” (Tuesday). The Institute for Economic Research (IW) said in a statement: “. The stock market crash on the Chinese stock market has just completed the short-term highs in recent months”
Euro shall continue to
The Euro continued to grow. On Monday, the single currency rose for the first time since February again over the mark of 1.15 dollars. In the course of an extraordinary soaring the European single currency reached 1.1714 in the afternoon with US dollar briefly the highest level since January. Speculation, the Fed could shift the expected for this autumn first hike since 2006, burden the dollar and provide in return for lifting the euro. Previously, the prospect had spurred on a US rate hike the dollar for a long time. A strong euro burdened German companies that export their goods outside the euro zone. He also makes German shares for US investors less interesting.
On the stock market caused uncertainty as to whether or when the Fed makes an expected rate hike, in addition to nervousness, as analysts thought.
oil prices plummeting
The parlous economic outlook also sent oil prices plummeting. The world’s two major oil prices fell to their lowest level in six and a half years. In the afternoon, the price slipped for a barrel (159 liters) of North Sea Brent for delivery in October to 42.51 US dollars, the lowest level since March 2009. If the industry is weakening, even less oil for production is needed. The worry about reduce demand and thus ensure beside the current high bid, in addition to falling prices
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