Does the downtrend end? Fears of a recession among investors

The leading German index is trying to break its downward trend: on Monday, the Dax went into trading with momentum. But the profits could quickly collapse again.

With a strong start to the week, the Dax is trying to break its downward trend on Monday. The leading German index rose by 1.33 percent to 14,167 points in the first minutes. For the MDax of medium-sized companies, it rose by 1.39 percent to 29,606 points. The leading Eurozone index EuroStoxx 50 gained 1 percent.

The Dax had already briefly exceeded its downtrend, which has been prevailing since the beginning of January, as well as the 50-day line in the previous week. However, at the weekly high of 14,226 points, the buyers had withdrawn again.

Recession fears and inflation preoccupy investors

Now, however, there is growing concern about missing out on possible price gains, explained Thomas Altmann of QC Partners. “And so we are seeing more and more purchases on the stock market again, even if they have not yet been made out of long-term conviction,” says the portfolio manager. Recession fears, inflation and rising interest rates continue to shape the picture overall.

With the Ifo business climate, Germany’s most important leading indicator is probably on the agenda in the morning. The war in Ukraine and the tough corona policy in China are likely to continue to weigh on the recovery.

Takeover offer for Deutsche Euroshop

At the beginning of the week, the focus on the market will be on the energy technology group Siemens Energy, which wants to completely take over its Spanish wind power subsidiary Siemens Gamesa (more on this here). With an offer of 18.05 euros per share, the outstanding 32.9 percent are to be acquired. If the offer is successful, Energy intends to take Gamesa off the stock exchange and integrate it into the Group.