DAX Posts Significant Losses Amid World Stock Markets Decrease

Forex News

The rapid decline in world stock markets continues. Germany's DAX stock index continues to lose ground, falling 1.88% on the day. The DAX is trading at 12.454.51. A sharp drop in Deutsche Bank shares on Friday lowered European equity markets, and the DAX fell 4.2% last week. The US stock indices also show significant losses. Dow Jones posted the biggest daily decline on Monday, losing 1.500 points. The index finished the day with a decrease of 4.6%, and the downward trend continued in the Asian and European markets today.

Some analysts suggest that the problems of stock markets can be attributed to the strong US employment and wage reports, which were published on Friday. Investors fear that harsh data may lead to an increase in inflation, which, in turn, will lead to an increase in rates this year. Higher interest rates make the dollar more attractive to investors, due to the stock markets. There are expectations that the ECB and possibly the Bank of Japan may raise rates at the end of 2018, which will cause the euro and yen to rise and affect the stock markets.

Factory orders in Germany increased by 3.8% in December compared to the previous month, when a decline of 0.1% was recorded. On an annualized basis, production orders increased by 7.2%, which is higher than the economists' forecast of 3.1%, however, it is lower than the previous estimate ( 9.1%).