FX.co ★ DAX Starts October on Cautious Note

As trading commenced in October, the DAX index in Frankfurt experienced a dip of approximately 0.5%, settling around 23,770 points on Wednesday. This downturn reflects the cautious sentiment pervading the markets, in light of the US government shutdown that went into effect at midnight. This marks the first government shutdown in seven years, bringing with it significant repercussions, including the furloughing of hundreds of thousands of public sector employees and substantial disruptions in public services. Additionally, there is a looming risk of delays in the release of crucial economic data. In Europe, investors are looking forward to preliminary data on September's inflation rates, which are anticipated to show an upward trend, potentially justifying the European Central Bank's cautious stance on interest rate cuts. Concurrently, EU leaders are convening in Copenhagen to deliberate over strategies for strengthening regional security. In corporate developments, defense sector companies like Hensoldt, Renk, and Rheinmetall saw significant declines, with their shares dropping by 3.1%, 2.4%, and 2.1%, respectively. Other notable stocks that experienced losses exceeding 1% include SAP, Continental, Scout24, and MTU Aero Engines.