If the Dax below 10,000 points - or slows Beijing?
Stops the Dax its decline still above the psychologically important 10,000 point mark? Investors drives to the fear that the Chinese economy will continue to vigorously losing steam - with implications for the entire world economy. "A slip below the 10,000 points in the next few days certainly there. It always existed not much. The market sees China as a huge problem and probably will remain so only once," predicts one trader. In the last week of trading alone, the German benchmark index had lost nearly 8 percent in the previous week, there were more than 4 percent.
The shops of Chinese industry had fallen by data from Friday in August to its lowest level in six and a half years. "The government has expected an upturn in the second half, but it looks like the opposite of," says economist Chester Liaw from research firm Forecast Pte in Singapore. "The economy is likely to continue to weaken."
The Chinese central bank already is considering to reduce the reserve requirement ratio for domestic banks as the "Wall Street Journal" reported on its website on Sunday citing official and adviser to the central bank. The less money the banks must put aside, the more they can theoretically lend to businesses and households.
According to the report, the measure is also a reaction to the self-induced by the central bank weakening of the domestic currency. The falling rate of the renminbi (yuan) could lead to increased outflow of foreign capital, it said.
The central bank could announce the step at month-end or the beginning of September, the report said. Here, the reserve ratio would be reduced by half a percentage point. This could 678 billion yuan (93 billion euros) will be released on loans. Analysts at Commerzbank expect accordingly "for the fourth quarter a significant Dax-recovery".
For an additional damper on the markets saw the US Federal Reserve. Investors wanted in their records of evidence of an imminent turnaround in interest rates. "The weakness in China ensures plenty of nervousness," says portfolio manager Alan Gayle of RidgeWorth Investments. "That overshadows the fact that the US economy is strong and the situation is improving in the economy in the European Union."
On Tuesday data on US consumer confidence and the home sales are at, one day later, following the orders of durable goods, on Thursday, the second estimate of US gross domestic product will be published. Investors are turning their attention to this economic data. Because the US Federal Reserve makes its interest rate hikes by the development of the economy depends.
From Germany stands on Tuesday at the Ifo Business Climate Index. Analysts polled by Reuters expect a decline to 107.8 points from 108 points in the previous month. The headwind for the German economy from the emerging economies will grow ever stronger, judging Commerzbank analysts.