European company stocks have historically struggled in August, as confirmed by an analysis covering the last three decades. According to Euronews, August is a period when major indices like EURO STOXX 50 and STOXX Europe 600 regularly experience significant declines.

This month brings lower trading volumes, increased volatility, and greater sensitivity to geopolitical and economic news. Investors should therefore be aware of these specifics when planning their investments during the summer months.

Stocks in august: Historical losses and market risks

Analysis of the EURO STOXX 50 shows that over the past 30 years, August has on average brought a decline of 1.66%, with only 43% of the months ending positively. A similar trend is seen in the STOXX Europe 600 index with an average drop of 0.7% and the same percentage of positive months.

The period between August and September is one of the most challenging on the calendar for European stocks, as the market is affected by weaker volumes and increased volatility. This phenomenon is stable over the long term and often repeats, which brings higher risk for investors during this time.

Among the most affected markets are Germany, France, Italy, and Spain, where the main indices DAX, CAC 40, FTSE MIB, and IBEX 35 show negative performance in August. For example, the German DAX typically falls by 2.2% with positive results only in 47% of cases. The French CAC 40 drops by 1.47%, gaining only in 37% of August months.

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Worst off are german companies

According to data from TradingView, some leading German companies experience extreme losses in August. Thyssenkrupp AG loses on average 4.6% with only a 30% chance of gains, while BMW AG falls by 4.1% and Volkswagen AG even by 3.3%, with the latter having only 27% profitable August months. The largest bank in the country, Deutsche Bank AG, shows a loss of 3.47% and similarly low chances of growth.

Companies like E.ON SE and Siemens AG also feel seasonal weakness, with both stocks dropping about 2% and low chances of a positive August result. Even firms like Deutsche Börse AG and Beiersdorf AG have August as their worst month of the year, which only confirms the overall trend of weak performance during this period.

August is therefore a time of increased caution for investors, when lower volumes and higher volatility can cause faster price fluctuations. Although this year has brought positive growth in European stocks, August often brings corrections and reduces investor optimism. History shows this is a recurring phenomenon to consider when planning investment strategies.

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