Market development from our perspective – September 2023

Germany's economy is facing considerable challenges, even though it has been economically successful so far in the 21st century.

The slump in the economy, in contrast to the all-time high of the DAX, is exacerbated by the Russian invasion of Ukraine and the interruption of natural gas supplies. This has led to an energy crisis and rising energy costs, which is a particular burden on energy-intensive industries. Russia’s decision to cut natural gas supplies to the EU has led to an energy crisis, causing the cost of natural gas to double. Germany now faces the risk of deindustrialisation due to high energy costs and a lack of government action to prevent production relocations.

The German economy is showing signs of recession as industrial production falls for the fourth month in a row.

The German economy is expected to shrink and forecasts for the coming years are cautious. Structural reforms are necessary, particularly with regard to energy prices, infrastructure and immigration. Despite these challenges, the DAX 40 is trading near its all-time high. However, there are ominous signs on the chart that call into question the sustainability of the current bull market. A possible interest rate increase by the European Central Bank is expected and the economic outlook remains gloomy, even if the index remains stable for the time being.

Disclaimer: This assessment is not an offer to buy or sell and does not constitute an invitation to buy or sell financial instruments or a personal recommendation (investment advice) in connection with financial instruments. Any general recommendations are an expression of the FI Group’s expectations based on current market conditions. The recommendations are therefore not based on fundamental analytical facts, and thus this assessment alone cannot form the basis for investment decisions. In connection with specific investments, the FI Group always recommends consulting specific advisors. The FI Group recommends that entrepreneurs seek individual advice on current market conditions.
Investments are associated with a risk of financial losses. Neither historical returns and price developments nor forecasts for the future can serve as a reliable indicator of future returns or price developments. The FI Group is not liable for any losses arising directly or indirectly from action taken solely on the basis of this assessment.
The information contained in this assessment is based on sources that the FI Group believes to be reliable. However, the FI Group accepts no liability for defects, including errors in the sources, printing errors or calculation errors or changed conditions.

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Adress

FiducInvest Holding Pte. Ltd.
10 Marina Boulevard
Level 39, #39-00
Marina Bay Financial Centre
018983 Singapore

You are currently viewing a placeholder content from Google Maps. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.

More Information

Contact

Newsletter

Phone: +65 6725 6330
Fax: +65 6322 0808

© 2024 FI Group all rights reserved