DAX-Sentiment: Investors seek a refuge for the correction

7. February 2013 by Gianni Hirschmüller

6 February 2013. FRANKFURT (Börse Frankfurt). Fully nine percent of Boerse Frankfurt’s sentiment panel quit the bullish camp over the past week. And there are no prizes for guessing when this selling took place – Monday. Over that single session the DAX index lost 2.5 percent. Admittedly, it was only by the end of the day the reasons for the weakness in the benchmark were laid bare: an emerging political scandal in Spain had provoked calls for the resignation of Prime Minister Rajoy; and, in Italy, investors watched with reticence a resurgence of popular support for former Premier Berlusconi, thanks in part to budget-blowing electoral pledges. These two events supposedly combined to endanger the reform process and all of the recent improvements in financial market conditions. In short, the eurozone risked being plunged back into the crisis. This gloomy scenario wasn’t painted from the very start of the day, however. On Monday, the market actually opened steady and even rose slightly. But later, over three distinct selling phases, prices moved lower, and with them emerged the concern over the eurozone’s economic rehabilitation. In short, the sell-off wasn’t a product of the political news; the news was a product of the sell-off…

Read more on Boerse Frankfurt’s website

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vposted on 7. February 2013 at 12:32 pm

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