Fear of a crash: Deutsche Bank warns of a shrinking economy money

Fear on the stock exchanges, prices are falling:

“The German share index (Dax) fell by more than 2000 points in June alone, a historic negative record,” says market analyst Jochen Stanzl from CMC Markets. Investors have not experienced such a minus of eleven percent in a June month since the German benchmark index was launched in 1988.

► Since the beginning of the year, shares have lost an average of a fifth of their value. “The Dax fell by more than 2000 points in June alone,” says market analyst Jochen Stanzl from CMC Markets.

In addition, the Dax has fallen below the important mark of 13,000 points. This triggers additional sell orders for many stock traders.

The main reason: the fear of an economic crash due to the Ukraine war (gas stop) and rising interest rates.

Deutsche Bank is already warning that the fight against inflation could “ultimately lead to a recession”. Means: shrinking economy, losses of the companies.

“Recession concerns have a firm grip on the financial markets,” said Commerzbank.

“More and more investors feared that the mix of high inflation and supply shortages on the energy side could force the USA and the euro zone into recession,” says Helaba strategist Claudia Windt.

Because of the gas crisis, a recession is becoming more and more likely, warns analyst Jochen Stanzl from the online broker CMC Markets. “There is simply no remedy against a gas supply freeze other than shutting down large parts of the German economy. We all know what the economic data looked like during the 2020 lockdown. A delivery stop could force another shutdown.”

The slide on the financial markets could continue in the coming days. However: As long as the low of just under 12,400 points in the leading index from the beginning of March is not undershot, “the chances of stabilization or even a recovery in the new week are not bad”, as Thomas Altmann from QC Partners explains optimistically.

The fear of a crash is even depressing the gold price. The price of the precious metal has been falling for days…

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