The German stock market continued to fall on Friday. Concerns about inflation and the interest rate turnaround announced the day before by the European Central Bank (ECB) weighed on investor sentiment. As a result, the US stock exchanges also fell sharply on Thursday.
The German stock market continued to fall on Friday. Concerns about inflation and the interest rate turnaround announced the day before by the European Central Bank (ECB) weighed on investor sentiment. As a result, the US stock exchanges also fell sharply on Thursday.
In early trading, the Dax fell 1.37 percent to 14,004.41 points, falling for the fourth day in a row. The loss over the week is now just over three percent.
The MDax lost 1.38 percent to 29,238.50 points. The Eurozone leading index EuroStoxx fell by 1.52 percent to 3667.86 points.
The day before, the record high inflation rates far from the comfort zone of the central banks had prompted the ECB to announce a turnaround in interest rates. In July, the key interest rate is to be raised for the first time in eleven years, by 0.25 percentage points. A larger rate hike could follow in September. The ECB also increased its forecast for inflation in the current year to 6.8 percent and at the same time lowered the assumption for economic growth in the euro area.
This Friday, the focus is on the US, where data on price developments in May are due. That probably triggered the lion’s share of the price losses there in later trading on Wall Street, after all, the next interest rate decision by the US Federal Reserve (Fed) is due in the new week. The market is once again anticipating major price increases.
Among the individual values in the Dax, Bayer shares were the only value to open in the black, but then gave way. Most recently it was down 0.8 percent. The agrochemicals giant won another lawsuit in the US over its weed killer Roundup as a cancer trigger.
Otherwise, two reclassifications in particular moved: Knorr-Bremse’s shares jumped 1.9 percent at the top of the MDax. Shares in the maker of braking systems for trains and trucks benefited from an upgrade to “buy” by Citigroup.
GFT Technologies lost around six percent. The private bank Berenberg had previously lowered its investment rating for the IT service provider from “Buy” to “Hold” for valuation reasons and sees little further scope for price increases.
Traded ex-dividend on this day are DWS, which pays out EUR 2.00, Brenntag with EUR 1.45, Traton with EUR 0.50 and Instone with EUR 0.62.
