DAX Under Pressure, FTSE Resilient as Risk Assets Start the Week on the Back Foot

[MongiIG]

Aug 22, 2022 | DailyFX
Zain Vawda

• DAX 40: Under Pressure as Unscheduled Nord Stream Maintenance Concerns Grow.
• FTSE 100:Remains Resilient in the Face of Fading Stock Rally.

 

DAX 40: UNDER PRESSURE AS UNSCHEDULED NORD STREAM MAINTENANCE CONCERNS GROW

The Dax continued its fall from last week’s inflection point, declining 280 odd points to start the week on the back foot. There may be more pain ahead for the index as worries over a German recession are ramped up by comments from the Bundesbank. The German central bank said it sees more wage pressures ahead as well as inflation of around 10% in the Autumn as government aid expires. The bank also reiterated its belief that a recession is now more likely given the current economic outlook.

 

 

FTSE 100: REMAINS RESILIENT IN THE FACE OF FADING STOCK RALLY

The blue-chip index was led lower by commodity stocks in European trade as falling oil prices saw Shell PLC and BP PLC come under pressure. This comes on the back of Iranian oil supply possibly returning to markets following a discussion between the US and allies on reviving the 2015 nuclear deal. The index recovered to trade flat as we approach the US open. The FTSE continues to display resilience thanks to its defensive leaning as well as the impact of a weaker pound on the indexes’ large number of dollar-earning stocks.