Dax Starts with Losses as US Economic Data Disappoints and Job Market Remains Cautious
The Dax started with losses on the second trading day of the week, dropping one percent to 18417 points after closing at 18608 points, 0.6 percent above the previous Friday. Negative signals came mainly from the US markets, as Wall Street showed no clear direction due to disappointing economic data. The Handelsblatt survey DaxSentiment reported a decreased risk of sharp price declines. Investors are now focusing on US industrial orders and job openings, with experts predicting a possible interest rate cut by the US Federal Reserve in September. Meanwhile, economic data for Germany showed a decrease of 27000 unemployed in May, but 179000 more than a year ago. The unemployment rate dropped to 5.8 percent. The BAX job index and labor market barometer suggest subdued job prospects in Germany for the next months. The uncertain economic outlook not only impacted Wall Street but also the oil market, with concerns of weaker demand pushing oil prices down. Individual stocks like Allianz faced a 2.6 percent decrease after a Citigroup downgrade, while Fresenius saw a 1.2 percent increase after an HSBC Buy recommendation. Overall, the important Dax level has been breached, leaving two future scenarios for investors to consider.
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