The fear of the negative consequences of rapid easing in the corona crisis caught up with the INDEXDB DAX on Wednesday. Fears pushed the Dax into the basement. In addition, another spoiler came in the afternoon.
Federal Reserve Chairman Jerome Powell rejected negative interest rates in the United States in an afternoon speech. Recently, there has been increasing speculation on the markets in America about this possibility. In addition, Powell does not expect the economy to recover quickly and calls for further government aid.
None of this went down well on the stock market. “This is the first time that a Fed official has said there are uncertain results and downside risks to the recovery,” Novapoint chief financial officer Joseph Sroka said.
In the end there was not a single winner in the DAX. Among the larger losers were the cyclically sensitive stocks, for example from the auto and chemical industries. Furthermore, the 6.4 percent weaker shares of Deutsche Bank were among the basement children. The bank is pushing ahead with the job cuts temporarily put on hold by the Corona crisis.
Because of the slump in sales in the Corona crisis, Volkswagen has to shut down work in places after the recent restart. At the main plant in Wolfsburg, the production of the small SUV Tiguan as well as the Touran and Seat Tarraco will soon be completely stopped over four days.