Market report: “Uncertainty cocktail” is weighing on the stock markets

The leading German index fell by 0.8 percent to almost 25,100 points in early trading. Yesterday the DAX fell by 1.2 percent to 25,319 points. According to the experts at Landesbank Helaba, in addition to high energy prices, unrest in European cities and rising bond yields are factors weighing on prices. "The risk to French government bonds is clearly being priced into European stocks," said Chris Weston, head of analysis at Pepperstone.

For Timo Emden, chief market analyst at CapTrader, there is currently an “uncertainty cocktail” on the stock market consisting of doubts about the financing of the AI ​​boom, interest rate fears and political uncertainties in major European cities. “As long as interest rate fears and exaggerated expectations of artificial intelligence sweep through the markets like gusts, autumn will remain stormy rather than golden,” explains the market expert.

The reporting season could provide positive impulses. This week the focus on the stock markets is on the balance sheets of US technology stocks. Investors are waiting for SpaceX's annual report today. "At SpaceX, investors should pay particular attention to the growth of Starlink and the scaling of the business with AI computing power. Sales increasingly come not only from rocket launches, but also from leasing computing capacity," said Maximilian Wienke, market observer at broker etoro.

The streaming provider Netflix will also publish its quarterly figures after the US stock market closes. Investors at Netflix are particularly interested in international business because the US market is considered saturated. They also hope for detailed information on advertising revenue. Netflix wants to encourage users to switch to ad-financed subscriptions because the company expects higher revenue in the long term.

Tesla and Meta will present their figures on Wednesday. What is particularly important for investors is whether the billion-dollar investments in artificial intelligence can also be translated into profits. There has been a lot of talk about the growth opportunities, but at some point the opportunities have to be supported by numbers.

“If the companies convince with strong margins and outlooks, doubts about the profitability of AI investments could decrease. Disappointments, on the other hand, could increase concerns about the financing of the AI ​​infrastructure and increase the pressure on the entire technology sector,” says etoro expert Wienke.

Investors on the German stock market have to digest the current producer prices. Manufacturers raised their prices in September more than they had in three and a half years. They demanded 6.7 percent more than in the same month last year.

Once again it is expensive energy that is causing particular price pressure. Producer prices for commercial products show development at an early stage of the economy. They are likely to have at least some impact on the development of consumer prices. In other words: Inflation could rise further in the coming weeks.