Gloomy End to September: DAX Slips Below 25,200 Points Following Inflation Shock!
The German benchmark index ended a weak trading month with renewed losses. With a daily decline of 0.79 percent, the DAX closed at 25,199.19 points, bringing the total September loss to around four percent. The MDAX also gave way slightly by 0.13 percent to 30,842.53 points. The course of the day resembled a rollercoaster ride: an interim recovery attempt toward the 25,500-point mark failed miserably in the afternoon as massive selling pressure pushed the index back into deep negative territory.
US Tailwinds Fizzle Out: Domestic Inflation and Oil Prices Choke Off Recovery
Paradoxically, the macroeconomic data from the US presented an extremely encouraging picture. A robust US labor market, stronger economic growth, and easing inflationary pressure across the Atlantic were unable to provide lasting support for the Frankfurt trading floor, however. The fundamental problem lies in Europe: stubbornly high inflation in Germany—which stood at 3.3 percent in September—as well as in other key Eurozone countries ultimately weighed much more heavily on local investors. To make matters worse, relentlessly rising oil prices and climbing bond yields kept risk aversion palpably high on the trading floor.
Start of the Month of Extremes: Micron Earnings and Macro Cascade Dictate the October Kickoff!
Following the US market close, exclusive focus shifted to the quarterly figures from memory chip giant Micron—an absolutely critical yardstick for the operational reality of the global AI boom. Disappointing signals could immediately translate simmering AI skepticism into aggressive selling pressure. For tomorrow, Thursday, the first trading day in October, the market also faces a massive data cocktail. While Asian markets are partially closed due to holidays in China and Hong Kong, a barrage of hard economic indicators will hit the trading floors in Europe and the US. Alongside the final purchasing managers' indices for Germany and the Eurozone, the US ISM index, serving as a real-economy thermometer, will take center stage in the afternoon. The core question is: Will the concentrated combination of Micron's outlook and macroeconomic leading indicators trigger the next severe valuation cascade in interest rates and equities?
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