FRANKFURT (dpa-AFX) - On the day of German unity, the DAX is initially showing signs of further losses. A few days ago the 20,000 points were still being discussed, but on Thursday the leading index is heading for a possible test of the 19,000 points mark. Broker IG valued the leading index 0.6 percent lower at 19,050 points two hours before the opening.

According to UBS, market conditions at the start of the final quarter remain characterized by tensions in the Middle East, mixed economic data and the close election campaign for the future US presidency. The leading index is heading for its fourth consecutive day of losses.

The UBS experts pointed to the recent rise in volatility indices as a barometer of the growing uncertainty. In their view, this is likely to remain the case for the time being, as the uncertainty is unlikely to dissipate any time soon. Hedging strategies are therefore advisable, but no major portfolio adjustments. Even after the unusually strong September, they remain convinced that the environment for equities is fundamentally positive./tih/jha/