The last record high was hit on January 23. How quickly the mood can shift. Just like the Dow Jones Industrial Average, Germany’s DAX has lost about 10 percent of its value in the space of two weeks. And while the blue-chip index was showing some signs of recovery on Monday, many analysts doubt the bad times are over just yet.
“The next shockwave could come at any time,” said Robert Halver, chief capital markets analyst for Baader Bank. Markets are busy trying to find their footing in a new reality, and “this process will still take a while,” he added.
The volatility, which began with a surprisingly strong wages report in the United States on February 2, has startled investors who had grown accustomed to calmer times over the past few years. And despite many grumblings on this side of the Atlantic that US investors are overreacting, Germany’s DAX has promptly followed suit in the past week. One thing both sides can agree on: Now is not yet the time to panic.