On Monday, the losses were moderate, but by the end of the trading day, it was clear that Germany’s leading index had to endure its fourth consecutive day of losses. The DAX fell by 0.17 percent at the start of the week, closing at 22,852 points.
The key reason behind these losses is the current market uncertainty. This uncertainty arises because, following the decision on the debt package, there have been no further developments to be factored in. Doubts about whether everything will work out as envisioned by the likely future chancellor seem to be prevailing at the moment. Investors and traders are missing the impulses that would provide confidence that the initial steps will be followed by further progress.
Among individual stocks, Bayer's shares dropped more than 6 percent, followed by Beiersdorf, which also fell significantly, losing over 4 percent. Now, investors must decide which direction they trust more. The DAX appears to be at a crossroads, especially considering that signals from the U.S. were actually positive.
British FTSE 100 Also Continues to Decline
The British index also had a negative start to the new trading week. The FTSE 100 continued to slide further. In the UK, fears are growing that the new U.S. president’s trade tariffs could also impact Britain. As a precaution, investors are pulling back, either taking profits from the market or securing their positions.
There is a sense of fear within the index, as it remains uncertain whether the current weakness will turn out to be a lasting downturn or just a healthy correction. From a technical analysis perspective, the outlook is becoming increasingly clouded. The FTSE 100 is showing signs of shifting into another downward trend.
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