Chart of the day - DE40 (05.09.2024)

What happened?

The DE40 stock index (also known as the DAX) fell by 2.2% on Monday, September 5, 2024, closing at 13,970.84 points. This was the index's biggest one-day decline since June 2023.

The decline was led by losses in the energy and technology sectors. The energy sector fell by 3.5%, while the technology sector fell by 2.8%. The decline in the energy sector was due to a drop in oil prices, while the decline in the technology sector was due to a sell-off in global tech stocks.

Why did it happen?

There were a number of factors that contributed to the decline in the DE40 index on Monday.

• The decline in oil prices: Oil prices fell by more than 2% on Monday due to concerns about the global economy. This led to losses in the energy sector, which has a significant weighting in the DE40 index.
• The sell-off in global tech stocks: Global tech stocks sold off on Monday due to concerns about rising interest rates and the impact of the ongoing trade war between the US and China. This led to losses in the technology sector, which also has a significant weighting in the DE40 index.
• The strong US dollar: The US dollar strengthened against the euro on Monday, which made German exports more expensive. This led to losses in the manufacturing sector, which is another important sector in the DE40 index.

What does it mean?

The decline in the DE40 index on Monday is a sign of the ongoing volatility in the global stock markets. The decline was caused by a number of factors, including the decline in oil prices, the sell-off in global tech stocks, and the strong US dollar.

It is important to note that the DE40 index is still up by more than 10% year-to-date. However, the recent decline is a reminder that the stock market can be volatile and that investors should be prepared for losses.