Market commentary with Joachim Döring

Our experts don’t only monitor the capital markets intensively, but are also active market participants in the interest of our clients on a daily basis. Here you can regularly find the latest market commentary of our expert Joachim Döring, Head of Wealth Management.

30. September 2022

Nervousness rises

When the introduction of a gas levy was being discussed in Germany, the Federal Minister of Finance had to ask the EU whether VAT could be waived as an exception. Brussels refused. The new government in Great Britain no longer has to take the EU into account. It wants to use this freedom and is planning the highest tax cuts since 1972, to be financed by a significant increase in the national debt. The slap in the face for this did not come from Brussels, but from the capital markets. Interest rates on British government bonds rose sharply and the exchange rate of the British pound collapsed against the euro. The situation only calmed down when the Bank of England intervened with bond purchases. The fluctuations on the British markets were also transmitted to prices in the euro area. The whole thing shows how high the nervousness on the stock markets is at the moment. However, it can also be seen that prices can react quickly in both directions - not only downwards but also upwards. Stay healthy!

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Joachim Döring