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Concern about the banking sector persists - Dax starts the week with a minus

The "emergency rescue" of the ailing major Swiss bank Credit Suisse at the beginning of the new trading week was not able to reassure investors on the German stock market.

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Concern about the banking sector persists - Dax starts the week with a minus

The "emergency rescue" of the ailing major Swiss bank Credit Suisse at the beginning of the new trading week was not able to reassure investors on the German stock market. The Dax fell on Monday morning to another low since January and slipped 2 percent into the red in the meantime, but recently recovered to a minus of 0.5 percent. At the same time, the leading German index seamlessly followed the previous week's discounts of more than four percent.

The MDax of medium-sized companies also fell significantly in the first few minutes of trading and temporarily fell by more than 2.50 percent, but then recovered again to minus 0.5 percent.

Concerns about Credit Suisse and the collapse of several US regional banks had recently raised fears of a wildfire and a new financial crisis on the financial markets. With billions in support from Switzerland and the local central bank, the takeover of the major Swiss bank by its domestic competitor UBS was decided at the weekend.

At the beginning of the week, high price losses at banks and insurers again weighed on Europe and in Germany. Investors are particularly concerned about their exposure to certain multi-billion dollar Credit Suisse bonds that are likely to default completely.

Against the background of the turbulence, the interest rate decision by the US Federal Reserve this Wednesday is now being awaited with particular suspense.

In view of the collapsing bank stocks on the stock exchanges, the Federal Financial Supervisory Authority (Bafin) in Bonn has assured that the German financial system "continues to be stable and robust". The Bafin keeps an eye on current market developments and takes them into account as part of its ongoing supervision, a spokesman said on Monday when asked by AFP.

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