⏬ DE30 at its lowest levels for the year

European indices fall amid rising recession risks

Preliminary PMIs for European countries for September showed a significant deterioration, especially in Germany and in the services sector in France. The mood among German businessmen has not been this bad since the start of the Covid pandemic. As a result, DE30 sank into the support area 12400-12500 points. It should be noted that this was the fourth attempt to break below this area recently and unless the index breaks above today, the next week may see a continuation of the decline.

It should also be noted that the DE30 is at its lowest level since November 2020 and is close to a 50% retracement of the post-pandemic recovery move. Although energy prices in Europe are currently stable, they are already high enough to threaten the survival of many companies. DAX is trading down 2.5% at time of writing.

The strong recovery in yields in Europe and the US, combined with higher energy prices, pushed stock indices lower today. Source: xStation5

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