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Slump in the stock market: The Dax continues to lose ground after a weak start to the week

Photograph:

Frank Rumpenhorst / dpa

The Dax has continued to decline after a weak start to the week. The German benchmark index fell 0.6 percent to 15,314 points in early trading, approaching its lowest level in 6 months. The MDax, an index of medium-sized stocks, fell by 0.9 percent to 25,902 points. The Eurozone benchmark index EuroStoxx 50 lost 0.9 percent.

In addition to interest rate worries on the stock market, there are fears that Democrats and Republicans in the US will not be able to agree on raising the debt ceiling. In this case, the US is threatened with a "shutdown" at the beginning of October, i.e. a budget freeze, as a result of which tens of thousands of federal employees will no longer be paid.

A mixture of interest rate and growth concerns is currently weighing on the German stock market. Stock market participants continue to wonder how long higher interest rates will keep the stock markets in check.

Zalando, Volkswagen and Porsche among the losers

Among the weakest stocks in the Dax, shares of online fashion retailer Zalando remained under pressure by falling by 2.1 percent. The shares of Volkswagen and Porsche SE were even weaker in early trading, falling 2.5 percent each.

The SDax in particular saw significant price movements. At the end of the index, Verbio's shares fell by 10.8 percent. High energy and raw material costs as well as lower sales prices weighed heavily on the biopower producer in the past fiscal year. Eckert & Ziegler's shares were ahead of the SDax, soaring by 8.5 percent. The radiation and medical technology group secured a major order from the USA. This involves the supply of carrier-free lutetium-177 to the US company Point Biopharma.

U.S. stock markets stabilize

The Dow Jones Industrial of standard stocks closed 0.1 percent higher at 34,006 points. The technology-heavy Nasdaq advanced 0.5 percent to 13,271 points. The broad-based S&P 500 gained 0.4 percent to 4337 points.

The prospect of a longer-lasting higher interest rate level continued to deter equity investors on Wall Street from making larger commitments. However, the stock markets were supported by price gains in Amazon notes and energy securities.

Markets in Asia on the decline

Further setbacks for the ailing real estate sector in China and fears of rising interest rates have spooked equity investors in Asia. In Tokyo, the Nikkei index lost 1.1 percent to 32,315 points.

Oil prices decline somewhat after recent soaring

Initially, price increases on the oil market did not continue. A barrel (159 liters) of North Sea Brent crude for delivery in November cost $92.88. That was 41 cents less than the day before. The price of a barrel of U.S. West Texas Intermediate (WTI) fell 38 cents to $89.30.

After price increases of around 25 percent since the beginning of July, prices have stagnated recently. For weeks, prices have been driven by the tight supply of large producing countries such as Saudi Arabia or Russia. However, a counterweight is the appreciating dollar, which makes crude oil more expensive for many interested parties. This is because commodities are mostly traded in the US currency, which is why a strong dollar can dampen demand.

With news agencies