The market delivered accordingly. After the cat was out of the bag, the fact that the debt package only needs to pass the Bundesrat was sold off in the market under the motto "Sell the Facts." Investors and traders are cashing in for now after the DAX once again reached an all-time high. Additionally, fresh momentum from the U.S. was lacking. U.S. markets continue to struggle to break free from the correction. Consequently, it is difficult for the German stock index to escape the ongoing profit-taking.
If the natural trend continues, the end of the correction could already emerge in the coming week. However, if the correction extends further, it will be necessary for new stimuli to encourage investors and traders to reinvest in equities.
In yesterday’s trading session, the DAX closed with a loss of 1.24 percent, and the worst performer among the 40 DAX stocks was Volkswagen, which ended the day down 4.2 percent. Volkswagen had recovered strongly in 2025, but the stock still seems to be lacking a stable foundation. Generally, automotive stocks came under pressure on Thursday.
Today, Friday, the major expiration date on the options markets is expected to cause volatility as large market participants hedge or cover their positions.
Bank of England remains conservative - stock market declines
The cautious approach by the Bank of England disappointed investors in the British stock market. The interest rate in the UK was left unchanged, and it was communicated that the cautious handling of rate cuts would continue. This is a rather conservative approach by the central bank. As a result, the British stock market declined. Only one vote favored a rate cut, reinforcing the market’s belief that the economy will likely recover only slowly.
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