DAX on shaky ground
The strong start to the week on Monday was followed, as so often, by disillusionment on Tuesday. What the DAX had painstakingly built up on Monday was completely lost again due to heavy profit-taking. At the end of the trading day, it was down 2.1% and the DAX once again had to prove that it could hold the 19,000-point mark. Investors are once again lacking the imagination to price the current changes positively into the market. There are increasing signs that inflation could pick up again, forcing central banks to revise their more expansive monetary policy once more. The forecasts of many companies are now also more realistic, meaning that optimism among investors is also limited. Added to this is the ongoing government crisis, which is likely to remain lethargic until the new elections in February and will put urgent reforms in terms of economic competitiveness behind party political objectives. The time for a major correction could be at hand, with only the statistics of positive months at the end of the year to counter the bitter reality. But is that enough?
Bayer on the brink of collapse - losses in the billions cause panic
On the other hand, yesterday was a good day for Infineon shares. The share was the day's DAX winner and investors were delighted with a return of 3.6 percent, even though the forecasts are anything but favourable. However, Bayer shares suffered the biggest slump with a drop of 14.5 percent. The crisis under the Bayer cross just won't let up. Having caught the virus with Monsanto, which cannot be brought under control, losses in the billions are causing panic in the agricultural business. The share price fell to a two-year low and there seems to be no improvement in sight.
Gold down 7 percent since the last all-time high
Gold is also continuing its correction and recorded its third consecutive day of losses. The precious metal has plummeted by more than 7 percent since its last all-time high. The only positive aspect seems to be that the momentum to the south eased somewhat yesterday, so that there is hope that the market can take a deep breath. The price at USD 2,600 is likely to be decisive for the continuation or termination of the correction.
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