DAX Dips as Gold Surges on US Shutdown Fears; Continental Sees DAX Future
The DAX and other European indices experienced a slight dip today, with the DAX closing at 23,703 points, down 0.18%. The Euro Stoxx 50 also fell by 0.22%. Gold prices neared record highs, rising by up to 1% to almost $3,872, due to uncertainty surrounding a potential US government shutdown. Meanwhile, Continental AG, a major German tire manufacturer, sees opportunities to remain in the DAX after separating from other businesses.
The impending US government shutdown has caused investors to seek safer alternatives. With gold prices rising, some German investors are turning to short-term fixed-term deposits (Festgeld) or savings accounts, focusing on short maturities. They are closely monitoring interest rate developments by the ECB.
Continental's CEO Nikolai Setzer believes that successful tire development could help the company stay in the DAX. The company sees opportunities to remain in the index as a pure tire manufacturer after separating from other businesses. The MDAX of mid-sized companies also lost 0.13% to 30,078 points.
Experts predict that the annual inflation rate in Germany will rise due to higher gasoline and diesel prices. Inflation data for September is set to be released in the afternoon. Hornbach Holding's shares fell more than 7% after earnings and profit figures fell short of expectations.
Each week of a US government shutdown is estimated to cost 0.2% of economic growth. As the shutdown threat continues, investors remain cautious, seeking safer alternatives to gold. Continental AG, however, is optimistic about its future in the DAX, with the CEO citing successful tire development as a key factor. The impact of the shutdown on the German economy and European indices will continue to be monitored.
