After the massive price slide on Monday, the DAX also started trading with losses on Tuesday. In the meantime, however, the leading German index is in positive territory. So there is still no threat of a serious test of the 13,000 point mark. But the market environment remains tense before the important central banker meeting in Jackson Hole.
From Thursday, the most important monetary policy representatives will meet for the annual symposium. The main focus will be on the US Federal Reserve. If the statements indicate that the interest rate screw is being tightened even more than previously thought, there is a risk of renewed losses. Because investors are still very afraid that rising interest rates and persistently high inflation will lead to a recession.
However, the recent bear market rally has shown that there is still hope that the central banks will succeed in landing the economy softly. If inflation falls and interest rates rise less than feared, rapid price gains are also possible – especially since the most recent reporting season was still largely strong.
The DAX remains caught between the fear of recession and the hope of a turnaround in inflation. In terms of charts, the leading index is now battered after the August gains were completely eaten up. Investors stay on the sidelines ahead of Jackson Hole.