DAX starts lower: Middle East and US monetary policy weigh on

The broker IG valued the DAX 0.2 percent lower at 26,217 points before the start of Xetra trading. On Monday, the leading German index started the week with a loss of 1.2 percent to 26,258 points. On Friday it had climbed to a record high of 26,618 points.

The renewed escalation in the Middle East and the possibly tighter US monetary policy are weighing on the situation: "The combination of slightly rising oil prices again and a higher probability of a Fed interest rate increase in just over two weeks has now also put a damper on the DAX on its record run," commented Andreas Lipkow, analyst at broker CMC Markets. The market is now expecting a US interest rate increase in September.

Today the focus is on inflation data from the Eurozone, which will be published at 11 a.m. German consumer prices were published at the start of the week: Life in Germany continued to become more expensive in August. Consumer prices were 2.9 percent higher than in the same month last year. A key reason is once again the increased energy prices.

Inflation in the euro zone is also likely to be well above the European Central Bank's (ECB) target of two percent. The financial markets are therefore expecting a key interest rate increase next week. The monetary authorities could raise their key interest rate for the second time this year in September, from 2.25 to 2.50 percent.

The specifications are weak given the geopolitical and monetary policy issues: On the US stock exchanges, the US standard value index Dow Jones closed on Monday with a loss of 0.7 percent at 53,185 points. The broad S&P 500 lost 0.3 percent to 7,686 points, and the technology-heavy Nasdaq stagnated at 26,370 points. Despite the recent weakness, all three major US stock indices posted gains for the month.

Investors processed the latest statements by US Federal Reserve Chairman Kevin Warsh, who signaled a tighter monetary policy at the central bank meeting in Jackson Hole. The probability of an interest rate increase of 25 basis points in September is now estimated on the financial markets at more than 65 percent.

When it comes to individual companies, the focus is on two technology groups: Amazon and Apple. The US competition authority FTC and several states are suing Amazon. The Internet giant is accused of having artificially made advertising space more expensive - the higher costs were largely passed on to consumers. Amazon is said to have earned double-digit billions in this way.

There will be a change in boss at iPhone manufacturer Apple today. CEO Tim Cook hands over his position to his successor John Ternus. Cook had led the tech group for 15 years, Ternus is now supposed to lead the company into the AI ​​era.