A stock trader sits under the Dax curve in front of his monitors. The leading index slipped by 4.6 percent in the past trading week.
(Photo: dpa)
The sell-off in the stock market accelerated over the weekend. The minus for the entire trading week is 4.6 percent. Calculated from the weekly high last Monday, the stock market barometer even slipped six percent by Friday evening.
This is a crash. However, as the past has shown, such crashes can be a good opportunity to get started. Because the two reasons for the sell-off are unlikely to be sustainable.
Two reasons have accelerated this sell-off over the past week.
1. Fear of a new euro crisis
First, there is the announcement by the European Central Bank that it will raise interest rates. This quickly triggered fears of a new euro crisis. The interest rate difference (spread) between Italian and German government bonds climbed to a new multi-year high.
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The absolute value of a ten-year government bond from Italy also climbed to 3.85 percent, reaching the level from 1999 to 2013.
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