On Tuesday, global bond markets experienced sharp selling pressure as fiscal concerns intensified, with UK gilts particularly affected amid speculation that the Chancellor may introduce new taxation measures in the upcoming Autumn budget.
US equity markets reopened after Labor Day with declines across all major indices – the Dow Jones fell 0.6%, S&P 500 dropped 0.7%, and Nasdaq 100 declined 0.8% – reinforcing September’s reputation as historically the weakest month for American stocks.
DAX 40 tries to hold at support
The DAX 40’s sharp fall on Tuesday has taken it to 23,483, close to the August low at 23,381. While this support area holds, a bounce towards the early July low at 23,621 may ensue. Further potential resistance sits at the 4 July low at 23,703.
Failure at 23,621 would be medium-term bearish and likely push the June low at 23,052 to the fore.
Dax 40 daily candlestick chart