psaTrading
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The evolution of the Chinese economy and its impact on emerging markets as well as the perception of the market against the US monetary policy will be the most important variables. In this context, DAX is a single case. Although this index is also influenced by the external environment, some specific issues have conditioned the German market. The first is related to the uncertainty about the proceedings and costs that RWE and E.On have to dismantle its nuclear facilities after the law passed by the German government, which strongly penalized their actions. On the other hand, yesterday announced that Volkswagen cheated on CO2 emission levels in the US, which should involve payment of damages and possibly lawsuits. Another risk is that other governments as they examine the practices were committed in their countries. Through the automobile sector’s behavior from yesterday, there is a risk of contagion to other manufacturers, which may have acted within the rules.