DAX Shows Significant Decrease
The decline in world stock markets continues. The German DAX stock index fell by 0.41% today and is trading at 12.210.00 level. Yesterday, the DAX fell to its lowest level since early September, and since the beginning of this month has lost 7.8%.
Improved US employment and wage reports have raised concerns about inflation, which could lead to a faster rate of rate hikes from the Federal Reserve. This sentiment sent the bond markets higher, and thereby caused a decline in world stock markets.
It seems that months of political uncertainty in Germany have come to an end. On Wednesday, SPD and Conservatives of Angela Merkel announced that they had completed a coalition agreement. Angela Merkel was forced to make strong concessions, most of all in the matter of the finance and foreign affairs ministries. This, most likely, will mark a shift in Germany’s Eurozone policy, which was marked by a conservative stance.